Champion Breweries’ 9M 2026 pre-tax profit drops to N917.52 million as finance costs surge

Champion Breweries Plc has released its unaudited Q3 2026 financial results, reporting a pre-tax profit of N917.52 million for the nine months ended September 2026, marking a 70.77% year-on-year (YoY) decline from N3.14 billion in the same period of 2025.

This is according to the brewer’s interim results filed with the Nigerian Exchange (NGX), indicating a 139.85% rise in revenue and a 47.50% increase in operating profit to N6.33 billion.

Net finance costs jumped 369.52% to N5.41 billion, absorbing about 85% of operating profit.

The company recorded a N1.26 billion tax credit, against a N1.09 billion tax expense a year earlier. This lifted profit after tax (PAT) by 6.36% to N2.18 billion despite pre-tax profit decline.

Without the credit, PAT would have been about N917.5 million.

This is the first year Champion is presenting consolidated interim accounts, following its acquisition of 80% of EnjoyBev B.V. on February 26, 2026.

Key Highlights (9M 2026 vs 9M 2025)

• Revenue: N51.41 billion (up 139.85% YoY from N21.44 billion)
• Gross profit: N17.17 billion (up 58.97% from N10.80 billion)
• Operating profit: N6.33 billion (up 47.50% from N4.29 billion)
• Profit before tax: N917.52 million (down 70.77% from N3.14 billion)
• Profit after tax: N2.18 billion (up 6.36% from N2.05 billion)
• Earnings per share (EPS): 9 kobo (down 60.87% from 23 kobo)
• Total assets: N128.03 billion (up 55.49% from N82.34 billion as at December 2025)
• Cash and cash equivalents: N2.88 billion (down 93.92% from N47.35 billion as at December 2025)

Three-month performance:

The Q3 2026 result was better, with revenue rising 185% YoY to N15.68 billion.

Pre-tax profit was N84.51 million, a remarkable improvement from a N318.30 million loss in Q3 2025.

The PAT of N974.04 million, against a loss of N242.40 million, was driven by an N889.53 million tax credit.

Driving the numbers

Cost of sales rose 222.03% to N34.24 billion, including N24.86 billion of goods bought for resale. This pushed nine-month gross margin down to 33.40% from 50.40%.

Selling and distribution expenses rose 68.98% to N6.91 billion, and administrative expenses rose 73.50% to N4.27 billion.

Finance costs surged to N7.25 billion from N1.38 billion.

A N1.01 billion net foreign-exchange gain, against a N140.54 million loss, and N836.30 million in finance income partly offset the loss.

Balance sheet performance:

Cash fell to N2.88 billion after N56.85 billion was spent on the EnjoyBev acquisition in February 2026, a development expected to boost earnings in near future.

• Borrowings declined 35.33% to N38.17 billion from N59.03 billion, with N22.51 billion repaid and N5.14 billion paid in interest.
• Net cash from operations improved to N8.54 billion from N5.71 billion.
• Nairametrics had reported H1, 2026 pre-tax profit of N2.28 billion, a 34.13% decline driven by finance costs, which rose to N4.91 billion from N543.7 million.

The PAT settled at N2.65 billion, also above PBT. However, Q3, 2026 results was more profitable.

Market reaction:

Champion closed at N8.00 on Tuesday, November 3, down 1.2% from N8.10 the previous day.

• The stock began the year at N14.00 and rose to N20.95 on January 20, 2026 before dropping steadily, reaching the lowest level on November 3, 2026.
• The stock is down 42.9% year to date, and ranks 131st on the NGX.
• It has lost 20% of its value since October 6 and was at N11.25 on July 23.

Management expects Q4 to be seasonally stronger, which will show whether the thin Q3 operating margin is temporary or structural and sustainable.