H1 2026: Champion Breweries Declares 124.3% Increase in Revenue to N35.73bn

Kayode Tokede

Champion Breweries Plc on the Nigerian Exchange Limited (NGX) announced first half year (H1) ended June 30, 2026 unaudited result and accounts with revenue at N35.73 billion, about 124.3 per cent increase when compared to N15.9 billion reported in first half year (H1) ended June, 30 2025.
The significant increase in topline translated into higher gross profit, which grew to N13.15 billion in H1 2026 from N8.25 billion in H1 2025, although cost pressures remained elevated.

With N368.9 million tax income in H1 2026, the multinational breweries company declared N2.65 billion profit after tax, representing an increase of nearly 16 per cent from N2.29 billion reported in H1 2025.
Profit before tax, thus closed H1 2026 at N2.28 billion, about 34.13 per cent drop from N3.46 billion reported in H1 2025.

The decline in H1 2026 profitability came despite a strong revenue performance, as the benefit of higher sales was offset by increased cost pressures, particularly a sharp rise in finance costs, which climbed to N4.91 billion from N403.7 million in the prior-year period.

Cost of sales increased faster than revenue, rising 193.83per cent year-on-year to N22.58 billion, which pressured gross margin.
The company also recorded higher selling and distribution expenses, which increased to N4.80 billion from N2.70 billion, while administrative expenses rose to N2.15 billion from N1.71 billion.

Despite these pressures, operating performance improved, with results from operating activities increasing to N6.17 billion, up from N3.86 billion in H1 2025.

However, the improvement at the operating level was offset by higher financing costs.
Finance costs surged to N4.91 billion from N543.699 million, resulting in net finance costs increasing to N3.90 billion from N403.726 million.

On the balance sheet, Champion Breweries recorded significant expansion during the period.
Total assets increased to N130.80 billion as of June 30, 2026 from N52.15 billion at the end of 2025, driven mainly by higher investment in property, plant and equipment, which increased to N101.70 billion from N19.75 billion. However, cash and cash equivalents declined to N5.47 billion from N7.47 billion.

The company’s equity position strengthened significantly during the period, rising to N69.08 billion from N13.08 billion, supported by an increase in share capital, the addition of share premium of N35.78 billion, retained earnings growth, and the recognition of N16.88 billion in non-controlling interest.

On the financing side, Champion Breweries’ total borrowings declined to N37.14 billion as of 30 June 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 at H1 2026 compared with N29.39 billion at December 2025.-