Champion Breweries Plc has staged a remarkable recovery in the first half of 2025, recording a 111 percent surge in gross profit alongside a major turnaround to profitability after a difficult performance in the previous year. The brewery, based in Uyo, Akwa Ibom State, reported stronger sales, better cost management, and improved operational efficiency, which combined to deliver its best half-year performance in recent years.
The financial statement for the six months ending June 30, 2025, showed that the company generated revenue of ₦15.93 billion, representing a sharp increase from ₦9.54 billion in the same period of 2024. This 67 percent growth in revenue was largely driven by stronger demand for its beer and malt products and an expansion in market coverage.
Gross profit climbed to ₦7.89 billion, up from ₦3.73 billion in the first half of 2024, indicating a 111 percent improvement. While cost of sales rose from ₦5.81 billion to ₦8.05 billion during the same period, the pace of growth in expenses remained slower than the increase in revenue. This allowed the company to expand its margins significantly despite rising input costs.
Perhaps the most striking achievement was the company’s return to profitability. Champion Breweries posted a profit after tax of ₦2.29 billion, compared to a loss of ₦386.66 million recorded in the first half of 2024. The turnaround was attributed to improved revenue, strict cost discipline, and the absence of foreign exchange losses, which had dragged the company into the red in the previous year.
The brewer’s operating profit also improved sharply, rising to ₦3.86 billion from ₦591.94 million in the first half of 2024, representing a jump of over 550 percent. This highlighted the effectiveness of measures taken to reduce administrative and operational expenses while boosting sales volumes.
Second-quarter performance reinforced this momentum, with beer and malt sales hitting ₦7.4 billion, a 44 percent increase from the corresponding period last year. Profit before tax for the quarter rose to ₦1.7 billion, compared to ₦465.4 million in Q2 2024, representing a 268.95 percent increase. Profit after tax for the quarter also improved significantly to ₦1.3 billion, almost tripling year-on-year.
The company’s balance sheet reflected the improvements as well. Total assets grew to ₦25.95 billion by June 30, 2025, from ₦21.35 billion at the end of 2024. Retained earnings rose to ₦5.63 billion, up from ₦3.88 billion, underlining the company’s strengthened financial position. Earnings per share also moved into positive territory, improving from a negative 4.94 kobo in the same period last year to 25.57 kobo in H1 2025.
Management attributed the strong results to a disciplined approach to sales and marketing, tighter control over costs, and the stabilization of the naira, which helped shield the company from heavy foreign exchange losses. Stable input costs relative to higher revenues also played a role in expanding profitability.
Nevertheless, the company continues to face challenges common in Nigeria’s manufacturing sector. Rising logistics and energy costs, coupled with the risk of foreign exchange fluctuations affecting imported raw materials, remain areas of concern. Despite these pressures, the latest figures suggest that Champion Breweries is in a stronger position to sustain growth and withstand external shocks.
The management has hinted that the improved financial health provides an opportunity to reinvest in growth areas. These may include upgrading production capacity, expanding marketing initiatives, and introducing new products to meet changing consumer preferences. With stronger cash flows and a healthier balance sheet, the brewer has the flexibility to consider strategic investments that could further consolidate its market position.
Investor confidence appears to be improving as well, with the company’s share price showing greater stability on the Nigerian Exchange. Market watchers believe the rebound has positioned Champion Breweries as one of the more promising players in the Nigerian brewing industry, provided it can maintain momentum and navigate the persistent macroeconomic headwinds.
In summary, Champion Breweries’ half-year 2025 performance signals a strong comeback. With a 111 percent jump in gross profit, a return to profitability, and a notable expansion in revenue, the company has demonstrated resilience and strategic execution. If the second half of the year maintains the same trajectory, Champion Breweries could cement its turnaround and deliver even greater value to shareholders and consumers alike.
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