Champion Breweries Plc, a Nigerian brewing company, saw its profit plummet by 73.6 percent last year, according to the company’s most recent financial statement.
The brewer’s profit before taxes decreased to N445.3 million from N2.25 billion in 2022, and its after-tax profit plummeted to N370 million from N1.41 billion.
From N12.3 billion to N12.7 billion, revenue increased somewhat. From N6.48 billion to N7.63 billion, the cost of sales grew.
Selling and distribution costs for the company went from N2.29 billion to N3.03 billion. The amount spent on administration increased from N1.43 billion to N1.53 billion.
The amount of financial asset impairment loss increased from N5.79 million to N20.4 million. Tax expenses decreased to N74.8 million from N841.2 million, and other income fell to N120.3 million from N183.5 million.
Net cash from operating activities at Champion Breweries climbed from N2.17 billion to N5.82 billion.
From a deficit of N2.76 billion, the net cash used for investing operations was now negative N6.58 billion. There was a positive N1.01 billion net cash earned from financing activities compared to a negative N92.27 billion.
The cost of consumables and raw materials went from N3.92 billion to N4.02 billion. During that time, it spent N937.9 million on maintenance and repairs, down from N568.2 million.
At the conclusion of the year, cash and cash equivalents rose from N2.19 billion to N2.45 billion.
While financing costs increased to N318.6 million from N116.7 million, finance income increased to N11.3 million from N94.3 million.
Trade and other receivables as a whole went from N73.2 million to N384.1 million. Stockpiles increased from N1.46 billion to N2.26 billion.
Prepayments to the company rose from N61.9 million to N92.9 million.
Other payables increased to N555.8 million from N234.6 million, while trade and other payables jumped to N5.55 billion from N1.95 billion.
The earnings per share of Champion Breweries decreased from N0.18 to N0.5.
A statement signed by Imo-Abasi Jacob, chairman of Champion Breweries, stated that EnjoyCorp Limited, a holding company created for food, beverage, and hospitality brands, has reached an agreement with Heineken B.V. to acquire 100% of its shareholding in The Raysun Nigeria Company Limited, which in turn holds an 86.5 percent stake in Champion Breweries Plc.
It stated, “The parties expect to close the transaction in Q2 2024, subject to obtaining necessary regulatory approvals.”
The state of Akwa Ibom is home to Champion Breweries. It makes Champ Malta beer and Champion lager. In December, the business named a new managing director and chief executive officer.
