The profit of Champion Breweries Plc, a Nigerian brewing company, dropped by 73.6 percent last year, according to the company’s latest financial statement.
The brewer’s after-tax profit fell to N370 million from N1.41 billion in 2022 and profit before tax also dropped to N445.3 million from N2.25 billion.
Revenue grew marginally to N12.7 billion from N12.3 billion. The cost of sales increased to N7.63 billion from N6.48 billion.
The company’s selling and distribution expenses increased to N3.03 billion from N2.29 billion. Administrative expenses grew to N1.53 billion from N1.43 billion.
Impairment loss on financial assets grew to N20.4 million from N5.79 million. Other income dropped to N120.3 million from N183.5 million and tax expenses dropped to N74.8 million from N841.2 million.
Champion Breweries’ net cash from operating activities increased to N5.82 billion from N2.17 billion.
Net cash used in investing activities stood at a negative of N6.58 billion from a negative of N2.76 billion. Net cash generated from financing activities recorded a positive of N1.01 billion from a negative of N92.27 billion.
Raw materials and consumables cost increased to N4.02 billion from N3.92 billion. It spent N937.9 million on repair and maintenance from N568.2 million during the period.
Cash and cash equivalents at the end of the year increased to N2.45 billion from N2.19 billion.
Finance income surged to N11.3 million from N94.3 million while finance cost surged to N318.6 million from N116.7 million.
Total trade and other receivables increased to N384.1 million from N73.2 million. Inventories surged to N2.26 billion from N1.46 billion.
The firm’s prepayments increased to N92.9 million from N61.9 million.
Trade and other payables surged to N5.55 billion from N1.95 billion while other payables grew to N555.8 million from N234.6 million.
Champion Breweries’ earnings per share dropped to N0.5 from N0.18.
EnjoyCorp Limited, a holding company established for food, beverage, and hospitality brands, reached an agreement with Heineken B.V, to acquire 100 percent of its shareholding in The Raysun Nigeria Company Limited, which in turn holds an 86.5 percent stake in Champion Breweries Plc, a statement signed by Imo-Abasi Jacob, chairman of Champion Breweries said.
“The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in Q2 2024,” it said.
Champion Breweries is located in Akwa Ibom state. It produces Champion lager beer and Champ Malta. The company appointed a new managing director/chief executive officer in December.
