Champion Breweries is projected to post its strongest full-year profit on record, buoyed by a less volatile naira and a cooling inflation that’s supporting earnings growth, according to analysts at Lagos-based consultancy Meristem Research.
Net income at the Uyo-based brewery is expected to hit N3.12 billion by the end of 2025, up from N817 million last year. “This outlook reflects a gradual easing of FX volatility, moderating inflationary pressures, and continued revenue growth, which together should support further margin expansion over the forecast period,” Meristem said in its new update on the brewery sector.
The profitability boost comes as the company recorded its highest earnings on record in the nine months ended September 2025, posting a net income of N2.05 billion compared to N21.50 million in the corresponding period last year.
This led to a significant rise in profitability metrics, with net margin, Return on Assets (ROA), and Return on Equity (ROE) jumping markedly to 9.54 percent, 5.55 percent, and 15.08 percent, respectively, compared to 0.15 percent, 0.12 percent, and 0.19 percent in the previous year.
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A less volatile exchange rate and a moderating inflation meant lower operating costs, especially as brewers are heavily exposed to swings in FX. For context, the Nigerian naira has witnessed one of its rarest stabilities in recent years, strengthening by about 12 percent year-to-date, a great improvement for a currency that plummeted by 41 percent last year.
Inflation is equally cooling, slowing for the seventh consecutive month to 16.05 percent in October 2025, a significant turnaround for prices that were over 30 percent last December.
That improving macroeconomic dynamics saw Champion Breweries’ net foreign exchange losses decline sharply by 85.14 percent to N140.54 million, compared to N945.66 million in the corresponding period last year.
The company also earns finance income on mostly short-term deposits , which helps offset part of the finance costs, thereby softening the net finance cost burden.
Revenue has also been on the upward trend with nine months turnover rising by 52.89 percent to N21.44 billion from N14.02 billion in the same period last year.
Meristem analysts see revenue momentum continuing, bolstered by the recent acquisition of the ready-to-drink (RTD) alcoholic and energy brand Bullet, which has an established presence in 14 African countries.
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“This move should expand CHAMPION’s consumer reach and deepen its portfolio, positioning the company to strengthen its regional footprint and support future revenue growth,” the analysts said.
“Accordingly, we project 2025FY revenue of NGN30.50bn, up 43.86% YoY from NGN20.89bn in 2024FY, driven by ongoing product diversification and strategic initiatives to capture additional market share.”
Stock beaming green again after bearish run
Shares of Champion Breweries are now gaining after it fell about 14 percent in one month, taking a hit from the bearish trend that struck the Nigerian capital market recently.
The stock closed trading on Friday, recording a 4.9 percent gain over its previous closing price of N12.35. Champion Breweries began the year with a share price of N3.81 and has since gained 240 percent on that price valuation, ranking it 10th on the NGX in terms of year-to-date performance.
