Even more notable, Champion Breweries’ Q1 2025 pre-tax profit has already exceeded its full-year 2024 profit by more than 36%, setting a strong pace for the year ahead.
Profitability Rebounds Sharply
Profit after tax (PAT) also surged, reaching N985 million — a 219.51% YoY increase, reversing the N824 million loss posted during the same period last year. This Q1 2025 PAT similarly outstripped the company's entire 2024 PAT by over 21%.
Champion’s recovery highlights a broader operational turnaround, with revenue growth significantly outpacing the rise in costs and expenses, driving improved profitability across the board.
Key Financial Highlights (Q1 2025 vs. Q1 2024):
- Revenue: N8.483 billion (+93.75% YoY)
- Cost of Sales: N4.492 billion (+55.06% YoY)
- Gross Profit: N3.991 billion (+169.40% YoY)
- Selling & Distribution Expenses: N1.253 billion (+24.06% YoY)
- Net Finance Cost: N234 million (-68.77% YoY)
- Basic EPS: N0.11 (+204.56% YoY)
- Cash and Cash Equivalent: N5.615 billion (+30.25% YoY)
- Total Assets: N25.011 billion (+17.17% YoY)
The significant improvement in gross profit and earnings per share points to enhanced operational efficiency and better profit margins, indicating that the company is now earning more from each naira of sales than before.
Operational Insights
A key driver of this positive performance was the company's ability to grow revenue at a faster pace than the rise in production and operating costs. Champion Breweries also benefited from the absence of foreign exchange losses in Q1 2025 — a notable change from the N743 million FX loss it suffered in Q1 2024. This contributed to a 68.77% reduction in net finance costs.
However, there remains a potential area of concern. The cost of raw materials increased by over 68% and now represents more than 44% of the total raw material costs recorded for the entire 2024 fiscal year. If this trend continues, it could pose a risk to future profitability margins.
Financial Health and Balance Sheet Strength
Champion Breweries’ balance sheet also strengthened notably in the first quarter, with total assets rising by 17.17%. Impressively, the company remains debt-free, with no interest-bearing loans on its books. Growth is being funded entirely through internally generated funds and equity — an enviable position, especially in today’s high-interest-rate environment where many firms are weighed down by finance costs.
As of March 2025, shareholders’ equity accounted for 52% of total assets, underlining a low financial risk profile that could bolster investor confidence and support potential expansion initiatives.
Market Performance and Dividend Update
Champion Breweries’ shares closed at N4.00 as of Friday, April 25, 2025, representing a 4.99% year-to-date (YtD) gain. The stock has demonstrated relative liquidity, trading 404 million shares over the past three months (January 23 – April 25, 2025), ranking it as the 22nd most traded stock on the Nigerian Exchange (NGX) during that period.
Meanwhile, in a press release dated March 6, 2025, the company corrected a previous dividend misstatement. Champion Breweries confirmed that its final dividend is N0.06 per share, not N0.60 as was initially reported in error. Shareholders listed on the Register of Members as of the close of business on Friday, May 9, 2025, will be eligible for the dividend payout.
Outlook
With a strong start to the year and key financial indicators pointing upward, Champion Breweries appears well-positioned for sustained growth in 2025. Nevertheless, the company must carefully manage input costs to preserve margins and maintain its impressive momentum.