Champion Breweries Plc, a brewery company in Nigeria, has recorded a 248 percent growth in its earnings for the second quarter of 2024, according to its latest unaudited financial statement.
The firm’s after-tax profit stood at N437.2 million in Q2, up from N125.6 million in the same period of 2023. The earnings in Q2 is an improvement from the loss of N823.8 million that the manufacturer incurred in the previous quarter.
But for the first six months of the year, the company posted a loss of N386.7 million from a profit of N29.1 million.
Its revenue surged to N5.17 billion in Q2 from N3.12 billion in the same period of 2023. In H1, revenue also rose to N9.54 billion from N5.7 billion in H1 last year.
Read also: Champion Breweries sees further growth as EnjoyCorp acquires 86.5% equity stake
Further analysis shows that finance cost dipped to N6.69 million in the second quarter from N15.8 million in the same period of 2023 while income tax also dipped to N28.2 million from N57.4 million.
Earnings per share increased to N5.58 in the second quarter from N1.60 in the same period of 2023.
Total assets declined to N18.8 billion as of June from N20.6 billion in December 2023 while liabilities also declined to N1.59 billion from N1.39 billion during the period.
Champion Breweries’ equity declined to N10.8 billion in June from N11.2 billion in December last year.
In February, EnjoyCorp Limited, a food, beverage, and hospitality firm, said an agreement had been reached with Heineken B.V. to acquire 100 percent of its shareholding in Champion Breweries Plc.
The deal was disclosed in a corporate filing on the Nigerian Exchange Limited (NGX), signed by Imo-Abasi Jacob, chairman of Champion Breweries.
He said EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX.
“Heineken will continue to support Champion Breweries for twelve months after the transaction has closed to ensure a smooth transition of ownership,” the statement reads.
The firm added that the transaction will result in EnjoyCorp taking a controlling stake in Champion Breweries, integrating it as an anchor subsidiary.
The statement said EnjoyCorp is building a portfolio of food, beverage, and hospitality brands and is poised to chart a course of transformative growth through strategic acquisitions and visionary leadership.
Champion Breweries said the proposed transaction is subject to obtaining requisite regulatory approvals, adding that the parties expect to close the deal in the second quarter of 2024.
The company is a regional brewer listed on the NGX and has 86.5 percent of its shares owned by Raysun Nigeria Company Limited, a subsidiary of Heineken.
In 2021, Heineken purchased 1.9 billion ordinary shares of Champion Breweries — the producer of Champion lager beer and Champ Malta — through Raysun. This was after the Dutch brewer acquired a 57 percent stake in the company in 2014.
