Champion Breweries’ 9M 2026 pre-tax profit drops to N917.52 million as finance costs surge

Champion Breweries Plc disclosed its Q3 2026 financial figures, revealing a significant drop in pre-tax profit to N917.52 million, a 70.77% decrease year-on-year compared to N3.14 billion in the same period last year. Despite this, the company reported a 139.85% increase in revenue and a 47.50% rise in operating profit, reaching N6.33 billion and N1.26 billion, respectively.

Net finance costs surged to N5.41 billion, consuming nearly 85% of the operating profit. The company also benefited from a N1.26 billion tax credit, which offset a N1.09 billion tax expense, resulting in a 6.36% increase in profit after tax (PAT) to N2.18 billion. This is the first year Champion is releasing consolidated interim accounts after acquiring 80% of EnjoyBev B.V. in February 2026.

The Q3 2026 result showed a revenue increase of 185% year-on-year to N15.68 billion, with a pre-tax profit of N84.51 million, marking a stark contrast to a N318.30 million loss in the previous year. The PAT of N974.04 million, up from a loss of N242.40 million, was driven by an N889.53 million tax credit. However, the cost of sales rose 222.03% to N34.24 billion, and selling and distribution expenses increased by 68.98% to N6.91 billion.

Finance costs shot up to N7.25 billion from N1.38 billion. The net foreign-exchange gain of N1.01 billion and finance income of N836.30 million helped offset the losses. Cash reserves fell to N2.88 billion after the N56.85 billion spent on the EnjoyBev acquisition. Management expects Q4 to be stronger seasonally, determining if the Q3 operating margin's thinness is temporary or structural.