Saturday July 26, 2025
By TheNewsDESK |
Champion Breweries hit a remarkable N2.3 billion net income for Half Year 2025.
According to Businessday David Olujinmi, this marks an impressive 692 percent year-on-year growth, rebounding from a N386 million loss in the same period of 2024.
Even more striking, the Uyo-based brewer’s half-year profit nearly tripled its full-year net income of N817 million recorded in 2024. Between January and June 2025, the company achieved a gross turnover of N15.9 billion, already accounting for over 76 percent of its total 2024 revenue of N20.9 billion.
A key tailwind for Champion Breweries was the relative stability of the Naira, which helped shield its earnings from foreign exchange losses. These losses had previously been one of the major headwinds dragging performance.
Breakdown of the result
In the second quarter alone, the company posted N7.45 billion in revenue, up 45 percent from the N5.17 billion recorded in Q2 2024. Profit after tax for the quarter stood at N1.3 billion, reflecting a 198 percent year-on-year jump from N437 million.
Champion Breweries’ gross margin climbed to 49.5 percent during the half-year, a notable leap from 39.1 percent in H1 2024. The margin growth reflects both improved pricing and increased sales volume, with inventories rising by nearly N991 million in just six months.
Trade receivables also shot up, rising 520 percent from N155.4 million at the start of the year to N964 million, suggesting growing customer demand.
Beyond topline growth, the brewer’s operational efficiency has improved markedly. Its operating margin surged to 24 percent in H1 2025, up from just 6 percent in the same period last year. This 1,800 basis points increase highlights stronger cost control and better capacity utilization.
Having fully repaid all its outstanding loans in 2024, Champion Breweries currently has no bank liabilities. Even while funding working capital internally, the company ended the first half of 2025 with a healthy N4.1 billion in cash. This reinforced its position as one of the more financially stable players in the industry, even though smaller than its competitors.
