Champion Breweries Plc reported 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 drop in earnings was attributed to disappointing 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.