Champion Breweries Plc has showcased robust financial performance in the 2024 fiscal year, marked by a substantial surge in profitability and revenue. The company’s audited financial statements reveal a profit after tax of N816.99 million, a remarkable 120.5% increase compared to the N370.56 million recorded in 2023. This impressive growth in profitability underscores the company’s effective business strategies and its ability to capitalize on market opportunities despite a challenging economic landscape. The surge in profit can be attributed to a combination of factors, including increased revenue, improved operational efficiency, and strategic cost management initiatives.
The company’s revenue performance is equally noteworthy, with a 64.5% year-on-year increase, reaching N20.89 billion in 2024 from N12.70 billion in 2023. This significant revenue growth primarily stems from higher sales volumes, indicating strong demand for the company’s products. Despite facing rising input costs, Champion Breweries successfully navigated the inflationary pressures and maintained healthy sales growth. The company’s ability to drive revenue growth underscores its strong brand recognition, effective marketing campaigns, and robust distribution network.
Analyzing the company’s cost structure, the cost of sales increased by 59.5% to N12.17 billion in 2024, up from N7.63 billion in the previous year. This rise in cost of sales can be attributed to various factors, including the rising cost of raw materials, increased production volumes to meet the growing demand, and inflationary pressures on manufacturing expenses. However, despite the increase in cost of sales, the company’s gross profit registered a significant growth of 70.3%, reaching N8.72 billion compared to N5.07 billion in 2023. This improved gross profit margin demonstrates the company’s ability to effectively manage its pricing strategy and maintain a healthy profit margin despite escalating input costs.
Furthermore, Champion Breweries witnessed a substantial improvement in its operating profit, which soared to N2.33 billion in 2024 from N603.97 million in the previous year. This impressive growth in operating profit can be attributed to the combination of higher revenue and controlled operating expenses. The company’s focus on optimizing operational efficiency and streamlining its cost structure contributed significantly to the improved operating profitability. However, the company experienced a surge in finance costs, which rose to N1.07 billion from N169.91 million in 2023. This increase reflects the impact of higher borrowing costs prevalent in the prevailing economic environment.
The company’s taxation expense also saw a substantial increase, reaching N457.06 million in 2024 compared to N74.78 million in 2023. This rise in tax expense is directly correlated with the increased profitability of the company, as higher profits translate to a higher tax burden. The company’s total comprehensive income for the year further strengthened, reaching N860.79 million, a remarkable 206.5% increase from N280.84 million recorded in the previous year. This underscores the company’s overall financial health and its ability to generate sustainable earnings growth.
Finally, Champion Breweries demonstrated a healthy balance sheet position, with total assets growing to N21.35 billion in 2024 from N20.55 billion in 2023. Shareholders’ equity also witnessed a positive trajectory, increasing to N12.06 billion from N11.20 billion, reflecting retained earnings and reserves. The company’s earnings per share (EPS) rose to 9.10 kobo in 2024 from 5 kobo in 2023, indicating improved returns for shareholders. This enhanced EPS reflects the company’s commitment to maximizing shareholder value and its success in delivering strong financial performance. The company’s strong performance in the second quarter of 2024, as reported by The PUNCH, with a 65.6% year-on-year revenue growth to N5.17 billion, further reinforces its growth trajectory and positive outlook.
