Champion Breweries’ H1 2026 pre-tax profit falls 34.1% to N2.28 billion

Champion Breweries Plc has released its unaudited H1 2026 results for the six-month period ended June 2026, reporting profit before tax of N2.28 billion, compared with N3.46 billion recorded in the corresponding period of 2025, representing a 34.13% decline year-on-year.

In the second quarter, the company recorded profit before tax of N1.44 billion, compared with a loss before tax of N1.07 billion in Q1 2026 and a profit before tax of N1.72 billion in Q2 2025.

The decline in H1 profitability came despite a strong revenue performance, as the benefit of higher sales was offset by increased cost pressures, particularly a sharp rise in finance costs, which climbed to N4.91 billion from N403.7 million in the prior-year period.

Key Highlights (H1 2026 vs H1 2025)

Revenue: N35.73 billion, +124.25% YoY from N15.93 billion
Cost of sales: N22.58 billion, +193.83% YoY from N7.68 billion
Gross Profit: N13.15 billion, +59.43% YoY from N8.25 billion
Selling and distribution expenses: N4.80 billion, +77.51% YoY from N2.70 billion
Administrative expenses: N2.15 billion, +25.56% YoY from N1.71 billion
Operating Profit: N6.17 billion, +59.94% YoY from N3.86 billion
Net finance costs: N3.90 billion, +382.69% YoY from N807.45 million
Profit after tax: N2.65 billion, +15.64% YoY from N2.29 billion
Earnings per share: 16 kobo, -38.46% YoY from 26 kobo
Total assets: N130.80 billion, +150.83% from N52.15 billion as of FY 2025
Cash and cash equivalents: N5.47 billion, -26.79% from N7.47 billion as of FY 2025
Total equity: N69.082 billion, +428.27% from N13.077 billion as of FY 2025

Driving the numbers

Champion Breweries delivered strong top-line growth in the first half of 2026, with revenue rising to N35.73 billion from N15.93 billion, representing a 124.25% increase year-on-year.

The increase in revenue translated into higher gross profit, which grew to N13.15 billion from N8.25 billion, although cost pressures remained elevated.
Cost of sales increased faster than revenue, rising 193.83% year-on-year to N22.58 billion, which pressured gross margin.
The company also recorded higher selling and distribution expenses, which increased to N4.80 billion from N2.70 billion, while administrative expenses rose to N2.15 billion from N1.71 billion.

Despite these pressures, operating performance improved, with results from operating activities increasing to N6.17 billion, up from N3.86 billion in H1 2025.

However, the improvement at the operating level was offset by higher financing costs.

Finance costs surged to N4.91 billion from N543.699 million, resulting in net finance costs increasing to N3.90 billion from N403.726 million.

Profit after tax increased to N2.65 billion from N2.29 billion, supported by a lower income tax expense of N368.88 million compared with N1.17 billion in the prior year.

Balance sheet

On the balance sheet, Champion Breweries recorded significant expansion during the period.

Total assets increased to N130.80 billion as of 30 June 2026 from N52.15 billion at the end of 2025, driven mainly by higher investment in property, plant and equipment, which increased to N101.70 billion from N19.75 billion. However, cash and cash equivalents declined to N5.47 billion from N7.47 billion.

The company’s equity position strengthened significantly during the period, rising to N69.08 billion from N13.08 billion, supported by an increase in share capital, the addition of share premium of N35.78 billion, retained earnings growth, and the recognition of N16.88 billion in non-controlling interest.

On the financing side, Champion Breweries’ total borrowings declined to N37.14 billion as of 30 June 2026 from N56.36 billion at the end of 2025.

While non-current borrowings increased to N37.14 billion from N26.96 billion, the company reported no short-term borrowings at H1 2026 compared with N29.39 billion at December 2025.-