Champion Breweries Plc has announced its unaudited H1 2026 results, revealing a significant 34.13% drop in profit before tax to N2.28 billion. This contrasts with the N3.46 billion recorded in the first half of 2025.
The decline in profitability occurred despite a robust revenue performance, as increased sales benefits were overshadowed by escalating cost pressures, particularly a sharp rise in finance costs.
In the second quarter alone, the company posted a profit before tax of N1.44 billion. This marks a recovery from a loss before tax of N1.07 billion in Q1 2026, though it is lower than the N1.72 billion profit before tax reported in Q2 2025.
Champion Breweries achieved strong top-line growth in H1 2026, with revenue climbing to N35.73 billion from N15.93 billion, marking a 124.25% increase year-on-year.
This revenue growth translated into a higher gross profit, which rose to N13.15 billion from N8.25 billion, a 59.43% increase. However, cost of sales outpaced revenue growth, surging by 193.83% year-on-year to N22.58 billion from N7.68 billion, thereby pressuring the gross margin.
The company also experienced increased operational expenses. Selling and distribution expenses grew by 77.51% to N4.80 billion from N2.70 billion, while administrative expenses rose by 25.56% to N2.15 billion from N1.71 billion.
Despite these pressures, operating profit improved by 59.94% to N6.17 billion, up from N3.86 billion in H1 2025. However, this operational improvement was significantly eroded by higher financing costs.
Finance costs escalated to N4.91 billion from N543.699 million, leading to net finance costs soaring by 382.69% to N3.90 billion from N807.45 million in the prior year.
Profit after tax did see an increase, rising by 15.64% to N2.65 billion from N2.29 billion. This was primarily supported by a lower income tax expense of N368.88 million, compared to N1.17 billion in the previous year. Earnings per share, however, declined by 38.46% to 16 kobo from 26 kobo.
On the balance sheet, Champion Breweries recorded substantial expansion during the period. Total assets increased by 150.83% to N130.80 billion as of June 30, 2026, from N52.15 billion at the end of FY 2025.
This growth was largely driven by a significant investment in property, plant and equipment, which increased to N101.70 billion from N19.75 billion. Conversely, cash and cash equivalents declined by 26.79% to N5.47 billion from N7.47 billion.
The company's equity position strengthened considerably, rising by 428.27% to N69.08 billion from N13.08 billion. This was bolstered by an increase in share capital, the addition of a share premium of N35.78 billion, growth in retained earnings, and the recognition of N16.88 billion in non-controlling interest.
Regarding financing, Champion Breweries' total borrowings decreased to N37.14 billion as of June 30, 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 in H1 2026, a notable change from N29.39 billion at December 2025.
In the market, Champion Breweries Plc's shares were priced at N11.25 at the close of trading on July 23, 2026, reflecting a 19.64% Year-to-Date loss.
