Champion Breweries Plc has reported a significant increase in revenue, with a 140% growth to N51.4bn for the nine months ended September 30, 2026. This growth is largely attributed to the consolidation of enJOYbev B.V. The company's revenue for the same period in 2025 was N21.4bn. The substantial increase in revenue is a notable achievement for the company, despite challenges in the beverage industry.
The company's operating profit also saw a considerable increase, rising by 48% to N6.3bn, compared to N4.3bn in the previous year. However, profit after tax increased slightly to N2.18bn from N2.05bn. Champion Breweries attributed its strong revenue performance primarily to the consolidation of enJOYbev B.V. The company's standalone brewing business experienced lower sales volumes due to prevailing challenges in the beverage industry.
According to Champion Breweries, disciplined pricing strategies and improvements in product mix helped sustain profitability despite subdued consumer demand. However, the company's operating margin came under pressure from integration costs and continued investments in distribution networks, brand development, and route-to-market expansion. These investments are crucial for the company's long-term growth ambitions.
The company's profit after tax included a net tax credit of approximately N1.3bn, largely resulting from deferred tax recognised on temporary differences in line with the International Accounting Standard 12 (IAS 12). The benefit was partly moderated by increased finance costs arising from acquisition-related funding and prevailing interest rates. This highlights the complexities of the company's financial performance.
The acquisition of enJOYbev has broadened Champion Breweries' business portfolio through entry into new product categories and brands, reducing its dependence on a single market segment. The expanded portfolio is expected to create opportunities for distribution synergies and growth across additional markets and consumer segments. This strategic move is a key driver of the company's growth prospects.
Managing Director Sampath Malolan commented on the performance, stating that the company had demonstrated resilience amid declining consumer spending and volume pressures across the industry. He attributed the company's solid profitability to disciplined pricing, active portfolio management, and a sustained focus on operational excellence. Malolan expressed optimism about the company's future growth prospects.
Looking ahead, Malolan expects key brand relaunches, the commissioning of a new canning line, and increased consumer spending during the festive season to boost performance in the fourth quarter. These initiatives are anticipated to sharpen the company's competitiveness, extend its consumer reach, and lift revenue momentum. The company's management remains focused on improving operational efficiency, expanding distribution channels, and delivering sustainable returns to shareholders.
Key points
- Champion Breweries reports 140% revenue growth to N51.4bn for nine months ended September 30, 2026
- The company's revenue growth is largely driven by the consolidation of enJOYbev B.V.
- Champion Breweries' management remains optimistic about the company's future growth prospects, citing planned brand relaunches and increased consumer spending during the festive season.
