Champion Breweries 2016 Financial Summary

Legal Form and Principal Activity

The Company was incorporated in Nigeria as a limited liability company on 31 July 1974 and was later converted to a public limited liability company on 1 September 1992. The Company's principal activities continue to be brewing and packaging of Champion Lager Beer and Champ Malta as well as provision of contract brewing services to Nigerian Breweries Plc, a related party within the Heineken group.

Analysis of Shareholding

The Raysun Nigeria Limited       61%
Assets Management Nominee     12%
Akwa Ibom State Government    10%

12 Months Report CHAMPION BREWERIES PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	3,864,943	3,501,845	10%	December
Profit/Loss  before taxation	637,300	210,769	202%
Profit for the period	530,389	77,140	588%
Issued Shares (Units)	7,829,496,464	7,829,496,464
Basic Earnings Per Shares (Kobo)	7.00	1.00	600%
Last total dividend paid (Kobo)	0.00	0.00	#DIV/0!

Quarter on Quarter Performance

Revenue                                                                   PAT

N'000                                                                       N'000

Q1: #871,887                                                      Q1: #57,108

Q2: #957,906                                                      Q2: #21,761

Q3: #831,153                                                      Q3: #18,092

Q4: #1,203,997                                                   Q4: #433,428

The performance of the Q4 did not go unnoticed, in terms of Revenue and Profit After Tax.

 Champion breweries  basically focused on the South South Market had carved a niche for itself their. Although Shareholders still need to wait for a long time to actually get value for their investment considering the rate the company in making money. However, the silver lining is that the company since its last rights issue and management turn around had been impressive, still not operating to capacity though.

The company maintained an average  of #966,236,000 in terms of Revenue and #132,597,000 in terms of PAT in 2016.

A closer look at the result shows that their was not much difference from what it was in 2015 but for Administrative expenses that was well managed. The company saved a total of #429,130,000 from what was expended in 2015. This singularly added value to the bottom line.

Administrative expenses would differ from what they are in 2015 and 2016. 2017 would provide a whole new challenge and opportunity the company must maximize capacity and improve sales in order to remain competitive and wipe out the negative reserve of #9,039,279,000 that is currently a wedge in the wheel of dividend payment to shareholders.

Champion breweries remain a major player in the Value market of the Lager category, with expertise from Heineken, the future should be bright but not immediately. 

 The Stock closed at #2.40k on Friday, 24th 2017. Let us see what hope it has against a Market dominated by dividend hunters.