Last Update25 Jul 25Fair value Increased 140%
Champion Breweries Plc Q2/H1 Result – Turnaround Momentum Gaining Strength
Champion Breweries has delivered a strong recovery in H1 2025, recording a notable swing from prior-year losses to a solid profit. The company posted:
- Revenue growth of 67% YoY to ₦15.93bn
- Gross profit more than doubled to ₦7.89bn (from ₦3.73bn)
- Profit after tax of ₦2.29bn compared to a loss of ₦387m in H1 2024
- Basic EPS improved to 25.57 kobo, from a loss per share of 4.94 kobo
✅ Strengths:
- Significant revenue growth (both quarterly and year-to-date), indicating increased market penetration or pricing power.
- Operating leverage: Operating profit rose sharply to ₦3.86bn (vs ₦592m), implying better cost discipline and economies of scale.
- Reversal of prior losses: H1 2025 PAT of ₦2.29bn highlights a credible turnaround.
- Foreign exchange stability: No FX loss reported in H1 2025, compared to ₦910m FX loss in the prior period.
- Finance income: ₦140m interest income boosts bottom-line support.
⚠️ Weaknesses / Risks:
- Finance cost pressures: Finance costs rose to ₦544m (from ₦14m), likely due to debt or lease obligations.
- High distribution and admin costs: Combined expenses consumed ₦4.05bn in H1 2025—still high compared to scale.
- Volatility in past performance: Recent profitability is a sharp reversal from past losses—consistency is yet to be proven.
- No dividend or capital return insight yet: Retained earnings growth needs clearer shareholder return policy.
💡 Outlook & Recommendation:
Champion Breweries is showing positive signs of a financial and operational turnaround, with margin expansion and significant growth in EPS. However, investors should monitor Q3 and full-year results to confirm this trajectory is sustainable.
Champion Breweries has delivered a strong recovery in H1 2025, recording a notable swing from prior-year losses to a solid profit. The company posted:
- Revenue growth of 67% YoY to ₦15.93bn
- Gross profit more than doubled to ₦7.89bn (from ₦3.73bn)
- Profit after tax of ₦2.29bn compared to a loss of ₦387m in H1 2024
- Basic EPS improved to 25.57 kobo, from a loss per share of 4.94 kobo
✅ Strengths:
- Significant revenue growth (both quarterly and year-to-date), indicating increased market penetration or pricing power.
- Operating leverage: Operating profit rose sharply to ₦3.86bn (vs ₦592m), implying better cost discipline and economies of scale.
- Reversal of prior losses: H1 2025 PAT of ₦2.29bn highlights a credible turnaround.
- Foreign exchange stability: No FX loss reported in H1 2025, compared to ₦910m FX loss in the prior period.
- Finance income: ₦140m interest income boosts bottom-line support.
⚠️ Weaknesses / Risks:
- Finance cost pressures: Finance costs rose to ₦544m (from ₦14m), likely due to debt or lease obligations.
- High distribution and admin costs: Combined expenses consumed ₦4.05bn in H1 2025—still high compared to scale.
- Volatility in past performance: Recent profitability is a sharp reversal from past losses—consistency is yet to be proven.
- No dividend or capital return insight yet: Retained earnings growth needs clearer shareholder return policy.
💡 Outlook & Recommendation:
Champion Breweries is showing positive signs of a financial and operational turnaround, with margin expansion and significant growth in EPS. However, investors should monitor Q3 and full-year results to confirm this trajectory is sustainable.
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