Industry News

Champion Breweries Posts Low Profit Following 9 Months Decrease in Sales

David Masifon

BY David Masifon

Champion Breweries Plc posted a 21% drop in profits for the first nine months of 2018 to ₦120 million.

In the same period in 2017, the company earned ₦152 million. The profit decline accelerated in the third quarter by 40% to ₦40 million, from ₦66 million in the previous year.

The brewer attributed the drop in profit to low sales despite higher selling and distribution expense.

Net revenue declined by less than 1% in nine months to ₦3.2bn but grew by 7.5% in the third quarter to ₦1.1bn. Selling and distribution expenses jumped 115% in nine months to ₦630 million, skyrocketing in the third quarter by 147% to ₦283 million.

Champion Breweries is based in Uyo, Akwa Ibom State and produces its namesake lager, Champion Lager and Champ Malta. The company is an indirect subsidiary of Heineken N.V.

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