April 30, (THEWILL) — Champion Breweries Plc has explained its weaker first-quarter 2026 profit, attributing the decline to higher financing costs tied to its recent acquisition of the Bullet brand, while expressing confidence in a stronger performance for the rest of the year.
The brewer reported a pre-tax profit of ₦839.2 million in Q1 2026, down from ₦1.7 billion in the same period of 2025, despite recording a significant rise in revenue. Net finance costs surged to ₦2.18 billion, driven by transaction expenses and borrowing associated with the acquisition.
Management described the current period as an “investment phase”, noting that Q2 2026 will be the first full quarter to reflect three months of Bullet’s consolidated revenues and margins. According to the company, the Q1 results only capture about five weeks of the newly acquired international operations, with clearer performance trends expected from April onward.
Chairman Imo-Abasi Jacob said the integration marks a major strategic shift, positioning the firm as an international beverage group rather than a regional player.
Despite the profit drop, underlying performance remained strong. Revenue grew to ₦14.3 billion from ₦8.4 billion, while gross profit rose to ₦ 6.1 billion. Operating profit also increased to ₦3.02 billion, supported by improved efficiency and higher sales. Total assets climbed to ₦132.4 billion, and retained earnings edged up to ₦5.7 billion.
The company added that earnings from its new international subsidiary generating revenue in euros and other hard currencies will provide a natural hedge against exchange rate volatility and support long-term growth.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
