Champion Breweries Plc has attributed its decline in first-quarter 2026 profit to increased financing costs linked to a recent acquisition of the Bullet brand, while assuring shareholders of a stronger financial performance for the rest of the year.
- +Champion Breweries explains Q1 earnings decline, projects strong 2026
The company disclosed this in a statement seen by Nairametrics, noting that despite the dip in profit, its underlying business performance remains strong.
The company disclosed this in a statement seen by Nairametrics, noting that despite the dip in profit, its underlying business performance remains strong.
The brewer reported a pre-tax profit of N839.2 million in Q1 2026, down from N1.7 billion recorded in the same period of 2025, even as revenue rose significantly.
The company noted that net finance costs increased to N2.18 billion, as a result of transaction-related costs and financing charges tied to the acquisition.
The company emphasized that investors should view the Q1 results as a snapshot of just five weeks of the international business, with a clearer picture expected to emerge from April onwards, adding that the integration of the Bullet brand marks a strategic shift, positioning it as an international beverage group rather than a regional brewer.
Despite the profit decline, Champion Breweries recorded strong growth across key financial indicators in Q1 2026.
The company noted that it is entering the rest of 2026 with stronger structural advantages following its recent strategic moves.
It says the company is now an international subsidiary contributing to earnings, with a strengthened balance sheet through recapitalisation.
Champion Breweries added that the newly acquired operations generate income in euros and other hard currencies, providing a natural hedge against exchange rate volatility.
The development follows the completion of the acquisition of the Bullet global brand portfolio earlier this year.
The company has also listed 2.38 billion new shares on the Nigerian Exchange in April 2026, increasing its share capital to 11.32 billion shares.
These strategic moves are expected to drive growth, expand market reach, and strengthen Champion Breweries’ long-term earnings outlook.
