Champion Breweries earnings decline 38% in Q3 despite strong growth
Champion Breweries Plc, the Akwa Ibom-based brewer said on Tuesday that net income fell 38% in the third quarter ending 30th September, due to higher production costs and a spike in selling and distribution expenses. Cost of sales rose 30% in the third quarter to N636m, from N489m in the same period last year.
The maker of Champion beer and Champ malt said that revenue grew 23% in the period to N831m, from N675m in 2015. However, a 21% spike in selling and distribution expense to N73m, from N60m and the higher production cost weighed on the brewer’s earnings, lowering it to N18m, down from N29m in 2015.
Champion Breweries manufactures Champion Lager beer and Champ Malta in Uyo, Akwa Ibom State. The products are marketed and distributed in the area and surrounding environs. The company is majorly owned by Raysun Nigeria Limited, a Heineken controlled company.