Champion Breweries reports 12% decline in half year revenue impacted by COVID-19

NIGERIA – Champion Breweries Plc, producer and marketer of alcoholic and non-alcoholic beverages in Nigeria has reported a loss after tax of N18.29m (US$47,383) for the half year ended June 30, 2020 as against a profit of N99.11m (US$256,761) posted in the same period in 2019.

According to the unaudited financial accounts obtained from the Nigerian Stock Exchange, the brewer also recorded a loss before tax of N26.09m (US$67,590), compared to a pretax profit of N141.41m (US$366,347) posted in 2019.

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Its revenue dropped 12.24 per cent to N1.427bn (US$3.69m) during the period under review from N1.63bn (US$4.2m) in 2019. Cost of sales rose to N942.55m (US$2.4m) from N640.19m (US$1.65m) in 2019.

Champion Breweries said it is leveraging on reduced costs of production in its efforts to return to profitability.

Champion Breweries is under the technical supervision of its controlling shareholders, a global beverage giant Heineken NV through a 60.4% stake by Raysun Nigeria Limited.

The Nigerian Stock Exchange (NSE) listed company was incorporated as a private limited liability Company in 1974 and has since then undergone changes in its ownership structure to its current status.

It has undergone a number of name changes; established as South East Breweries Limited, the name changed to Cross River Breweries Limited and thereafter to Champion Breweries Limited which was later changed to Champion Breweries Plc.

In 2011, Consolidated Breweries acquired a 57% equity stake in Champion Breweries which was originally held by Montgomery Ventures Inc (Panama).

In 2013, Raysun Nigeria Limited, a wholly-owned subsidiary of Heineken, purchased Consolidated Breweries and now holds a majority equity stake in Champion Breweries Plc.

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They began manufacturing in 1976 with a capacity of 150,000 hecto litres of Champion beer and 10,000 hecto litres of Champ Malta.

The company also brews and packages products under contract to Nigerian Breweries Plc.

Nigeria’s alcoholic beverage sector is an increasingly lucrative industry, with market research forecasting annual consumption growth of over 6% through 2022, according to AsokoInsight.

This is slightly up on the 5% annual growth experienced between 2014 and 2016 which brought average consumption to 25.5 litres, according to the World Health Organisation.

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