Champion Breweries’ pre-tax profit soars 186% in 2024
NIGERIA – Champion Breweries Plc has reported a remarkable 186.08 percent increase in pre-tax profit, reaching N1.2 billion (US$800.8K) in its financial results for the year ending December 31, 2024.
The company’s total revenue surged 64.44% to N20.8 billion (US$13.88M), up from N12.7 billion (US$8.48M) in 2023, driven by strong sales of Champion Beer and Champ Malta.
Despite rising costs, Champion Breweries demonstrated significant profitability. The cost of sales increased by 59.44% to N12.1 billion (US$8.07M) from N7.6 billion (US$5.07M) in the previous year.
However, gross profit rose 71.96% to N8.7 billion (US$5.8M), compared to N5 billion (US$3.34M) in 2023. Operating profit saw an even more impressive jump of 289.45%, reaching N2.3 billion (US$1.5M) from N603.9 million (US$403K).
The company’s total assets grew to N21.3 billion (US$14.2M) from N20.5 billion (US$13.68M) in 2023, with non-current assets making up a significant portion of the balance sheet.
Champion Breweries also advanced its sustainability and corporate governance efforts in 2024. It achieved a notable 93.5 percent reduction in waste-to-landfill, reinforcing its commitment to environmental responsibility.
Additionally, local sourcing expanded to 58.3 percent, supporting domestic agriculture and reducing reliance on imported raw materials.
The brewery’s strong financial performance reflects broader industry resilience amid Nigeria’s challenging economic environment.
In June 2023, the Central Bank of Nigeria (CBN) floated the naira, leading to sharp currency devaluation and increased import costs. Breweries faced significant margin pressure as raw material and equipment expenses soared.
Despite these challenges, the brewing sector has rebounded. Analysts believe the latest earnings reports indicate the industry may have moved past the worst of the economic downturn.
Other breweries, including Guinness Nigeria Plc, have also recorded improved results, aided by a shift towards affordable product offerings and higher demand for spirits and non-alcoholic beverages.
Champion Breweries’ ability to navigate FX volatility through strategic pricing, cost management, and local sourcing has contributed to its strong financial turnaround.
The company remains focused on sustaining growth while reinforcing its commitment to environmental and social responsibility.
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