Champion Breweries more than doubles profit to a record

Champion Breweries Plc more than doubled profit to a record in 2025 as revenue surged and finance income cushioned the impact of higher borrowing costs, reflecting continued earnings growth for the Uyo-based brewer.

Profit after tax jumped 119 percent to N1.79 billion in the year ended December 31, from N817 million a year earlier, according to the company’s audited financial statements. Revenue rose 43 percent to N29.8 billion, driven by stronger sales of its Champion Lager Beer and Champ Malta brands.

The historic feat follows the acquisition of the Bullet brands in a landmark deal that has now expanded the brewer’s footprint into 14 African markets.

Read also: Champion Breweries buys Bullet brands, enters 14 African markets

Operating profit climbed 107 percent to N4.83 billion, reflecting improved margins even as selling and distribution expenses increased 60 percent to N6.52 billion and administrative costs rose 65 percent to N3.96 billion. Gross profit advanced to N15.37 billion from N8.72 billion.

Finance income rose sharply to N438 million from N15.6 million, while finance costs more than doubled to N2.62 billion as the company tapped new borrowings during the year. Profit before tax increased 108 percent to N2.65 billion.

Basic and diluted earnings per share rose to 20 kobo from 9.1 kobo in 2024.

Read also: Champion Breweries eyes growth pivot with N42bn Bullet deal 

The board recommended a dividend of 7 kobo per share, up from 6 kobo a year earlier, subject to shareholder approval at the 2026 annual general meeting.

The balance sheet expanded significantly during the year. Total assets surged to N82.3 billion from N21.3 billion, boosted by a N9.74 billion deposit for investment and a sharp rise in cash and cash equivalents to N47.3 billion, compared with N4.31 billion at the end of 2024.

The company also took on substantial debt to fund the expansion of the Bullet brands. Non-current borrowings stood at N29.6 billion, while current borrowings were N29.4 billion, compared with no borrowings in the prior year. Total liabilities rose to N69.3 billion from N9.29 billion.

Read also: Pathway Advisors champions N20bn bond issuance for Dimension Data Nigeria to boost digital infrastructure

Cash generated from operations increased to N8.43 billion, while net cash used in investing activities widened to N16.6 billion, largely due to capital expenditure of N7.29 billion and the investment deposit.

Champion Breweries, incorporated in 1974 and based in Uyo, Akwa Ibom State, is controlled by EnjoyCorp. The results mark the company’s strongest earnings performance on record, even as it ramps up capital spending and leverage to position for future growth.

Shares of Champion Breweries lost 5.6 percent to close trading on Monday at N17 per share. But that stock has equally returned 21.4 percent year-to-date and gained 313 percent a year ago.