{"id":11281,"date":"2026-11-05T08:41:40","date_gmt":"2026-11-05T08:41:40","guid":{"rendered":"https:\/\/ograsset.com\/?p=11281"},"modified":"2026-11-05T08:41:41","modified_gmt":"2026-11-05T08:41:41","slug":"champion-breweries-9m-2026-pre-tax-profit-drops-to-n917-52-million-as-finance-costs-surge","status":"publish","type":"post","link":"https:\/\/ograsset.com\/index.php\/2026\/11\/05\/champion-breweries-9m-2026-pre-tax-profit-drops-to-n917-52-million-as-finance-costs-surge\/","title":{"rendered":"Champion Breweries\u2019 9M 2026 pre-tax profit drops to N917.52 million as finance costs surge"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"975\" height=\"481\" src=\"https:\/\/ograsset.com\/wp-content\/uploads\/2026\/11\/image-15.png\" alt=\"\" class=\"wp-image-11282\" srcset=\"https:\/\/ograsset.com\/wp-content\/uploads\/2026\/11\/image-15.png 975w, https:\/\/ograsset.com\/wp-content\/uploads\/2026\/11\/image-15-300x148.png 300w, https:\/\/ograsset.com\/wp-content\/uploads\/2026\/11\/image-15-768x379.png 768w\" sizes=\"auto, (max-width: 975px) 100vw, 975px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Champion Breweries Plc has released its unaudited Q3 2026 financial results, reporting a pre-tax profit of N917.52 million for the nine months ended September 2026, marking a 70.77% year-on-year (YoY) decline from N3.14 billion in the same period of 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is according to the <a href=\"https:\/\/doclib.ngxgroup.com\/Financial_NewsDocs\/48254_CHAMPION_BREWERIES_PLC-_QUARTER_3_-_FINANCIAL_STATEMENT_FOR_2026_FINANCIAL_STATEMENTS_OCTOBER_2026.pdf\"><strong>brewer\u2019s interim results filed with the Nigerian Exchange (NGX),<\/strong><\/a> indicating a 139.85% rise in revenue and a 47.50% increase in operating profit to N6.33 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Net finance costs jumped 369.52% to N5.41 billion, absorbing about 85% of operating profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company recorded a N1.26 billion tax credit, against a N1.09 billion tax expense a year earlier. This lifted profit after tax (PAT) by 6.36% to N2.18 billion despite pre-tax profit decline.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Also Read<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/nairametrics.com\/2026\/11\/05\/naira-slips-to-n1348-as-fx-turnover-drops-below-101-million\/?utm_source=auto-read-also&amp;utm_medium=web\"><strong>Naira slips to N1,348\/$, as FX turnover drops below $101 million<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/nairametrics.com\/2026\/11\/05\/cbn-mops-up-n3-46-trillion-across-omo-ntb-auctions-holds-t-bill-stop-rates-steady\/?utm_source=auto-read-also&amp;utm_medium=web\"><strong>CBN mops up N3.46 trillion across OMO, NTB auctions, holds T-bill stop rates steady<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/nairametrics.com\/2026\/11\/04\/nigerian-stocks-gain-n307-billion-as-transcorp-power-banks-drive-market-rally\/?utm_source=auto-read-also&amp;utm_medium=web\"><strong>Nigerian stocks gain N307 billion as Transcorp Power, banks drive market rally<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Without the credit, PAT would have been about N917.5 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the first year Champion is presenting consolidated interim accounts, following its acquisition of 80% of EnjoyBev B.V. on February 26, 2026.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Key Highlights (9M 2026 vs 9M 2025)<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revenue: N51.41 billion (up 139.85% YoY from N21.44 billion)<\/li>\n\n\n\n<li>Gross profit: N17.17 billion (up 58.97% from N10.80 billion)<\/li>\n\n\n\n<li>Operating profit: N6.33 billion (up 47.50% from N4.29 billion)<\/li>\n\n\n\n<li>Profit before tax: N917.52 million (down 70.77% from N3.14 billion)<\/li>\n\n\n\n<li>Profit after tax: N2.18 billion (up 6.36% from N2.05 billion)<\/li>\n\n\n\n<li>Earnings per share (EPS): 9 kobo (down 60.87% from 23 kobo)<\/li>\n\n\n\n<li>Total assets: N128.03 billion (up 55.49% from N82.34 billion as at December 2025)<\/li>\n\n\n\n<li>Cash and cash equivalents: N2.88 billion (down 93.92% from N47.35 billion as at December 2025)<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Three-month performance:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The Q3 2026 result was better, with revenue rising 185% YoY to N15.68 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pre-tax profit was N84.51 million, a remarkable improvement from a N318.30 million loss in Q3 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The PAT of N974.04 million, against a loss of N242.40 million, was driven by an N889.53 million tax credit.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Driving the numbers<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Cost of sales rose 222.03% to N34.24 billion, including N24.86 billion of goods bought for resale. This pushed nine-month gross margin down to 33.40% from 50.40%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Selling and distribution expenses rose 68.98% to N6.91 billion, and administrative expenses rose 73.50% to N4.27 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finance costs surged to N7.25 billion from N1.38 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A N1.01 billion net foreign-exchange gain, against a N140.54 million loss, and N836.30 million in finance income partly offset the loss.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Balance sheet performance:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Cash fell to N2.88 billion after N56.85 billion was spent on the EnjoyBev acquisition in February 2026, a development expected to boost earnings in near future.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Borrowings declined 35.33% to N38.17 billion from N59.03 billion, with N22.51 billion repaid and N5.14 billion paid in interest.<\/li>\n\n\n\n<li>Net cash from operations improved to N8.54 billion from N5.71 billion.<\/li>\n\n\n\n<li><a href=\"https:\/\/nairametrics.com\/2026\/07\/24\/champion-breweries-h1-2026-pre-tax-profit-falls-34-1-to-n2-28-billion\/\"><strong>Nairametrics had reported H1, 2026 pre-tax profit of N2.28 billion<\/strong><\/a>, a 34.13% decline driven by finance costs, which rose to N4.91 billion from N543.7 million.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The PAT settled at N2.65 billion, also above PBT. However, Q3, 2026 results was more profitable.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Market reaction:<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Champion closed at N8.00 on Tuesday, November 3, down 1.2% from N8.10 the previous day.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The stock began the year at N14.00 and rose to N20.95 on January 20, 2026 before dropping steadily, reaching the lowest level on November 3, 2026.<\/li>\n\n\n\n<li>The stock is down 42.9% year to date, and ranks 131st on the NGX.<\/li>\n\n\n\n<li>It has lost 20% of its value since October 6 and was at N11.25 on July 23.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Management expects Q4 to be seasonally stronger, which will show whether the thin Q3 operating margin is temporary or structural and sustainable.<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/nairametrics.com\/2026\/11\/04\/champion-breweries-9m-2026-pre-tax-profit-drops-to-n917-52-million-as-finance-costs-surge\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Champion Breweries Plc has released its unaudited Q3 2026 financial results, reporting a pre-tax profit of N917.52 million for the nine months ended September 2026, marking a 70.77% year-on-year (YoY) decline from N3.14 billion in the same period of 2025. This is according to the brewer\u2019s interim results filed with the Nigerian Exchange (NGX), indicating&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/ograsset.com\/index.php\/2026\/11\/05\/champion-breweries-9m-2026-pre-tax-profit-drops-to-n917-52-million-as-finance-costs-surge\/\" class=\"excerpt-read-more\">Read More \u2192<\/a><\/p>\n","protected":false},"author":2,"featured_media":11282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-11281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fit-row"],"jetpack_featured_media_url":"https:\/\/ograsset.com\/wp-content\/uploads\/2026\/11\/image-15.png","_links":{"self":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts\/11281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/comments?post=11281"}],"version-history":[{"count":2,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts\/11281\/revisions"}],"predecessor-version":[{"id":11284,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/posts\/11281\/revisions\/11284"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/media\/11282"}],"wp:attachment":[{"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/media?parent=11281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/categories?post=11281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ograsset.com\/index.php\/wp-json\/wp\/v2\/tags?post=11281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}