Champion Breweries Plc has reported a steep decline in pre-tax earnings for the nine months to September 2026, as a sharp rise in finance costs outweighed gains from a much larger revenue base following its acquisition of EnjoyBev B.V.
According to the brewer's unaudited Q3 2026 results filed with the Nigerian Exchange (NGX), pre-tax profit fell to N917.52 million from N3.14 billion in the corresponding period of 2025, a year-on-year drop of 70.77%. Revenue, however, climbed 139.85% to N51.41 billion from N21.44 billion, while operating profit rose 47.50% to N6.33 billion.
The pressure came mainly from net finance costs, which jumped 369.52% to N5.41 billion and absorbed about 85% of operating profit. Finance costs surged to N7.25 billion from N1.38 billion, though a net foreign-exchange gain of N1.01 billion, compared with a N140.54 million loss a year earlier, and N836.30 million in finance income provided partial relief.
A N1.26 billion tax credit, against a N1.09 billion tax expense in the prior year, lifted profit after tax by 6.36% to N2.18 billion from N2.05 billion. Without the credit, profit after tax would have been about N917.5 million. This is the first period in which Champion is presenting consolidated interim accounts after acquiring 80% of EnjoyBev B.V. on February 26, 2026.
Key nine-month figures include: - Gross profit: N17.17 billion, up 58.97% from N10.80 billion - Earnings per share: 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
Cost of sales rose 222.03% to N34.24 billion, including N24.86 billion of goods bought for resale, pushing the nine-month gross margin down to 33.40% from 50.40%. Selling and distribution expenses increased 68.98% to N6.91 billion, while administrative expenses rose 73.50% to N4.27 billion.
On the balance sheet, cash declined to N2.88 billion after N56.85 billion was spent on the EnjoyBev acquisition in February 2026. Borrowings fell 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.
