The market responded positively on Wednesday to the news that Champion Breweries Plc has entered into an agreement to acquire all brand assets and intellectual property of the Bullet range of ready-to-drink (RTD) alcoholic and energy beverages from Sun Mark International Limited.
The acquisition was announced in a company filing on the Nigerian Exchange (NGX) on Wednesday.
Following the announcement, Champion Breweries’ share price surged 10% on Wednesday, hitting a 52-week high of N19.74 from its previous close of N17.95.
Trading activity also spiked, with volume skyrocketing 4,848% to 54.5 million units, pushing the total value of shares exchanged to N1.08 billion.
This rally boosted the company’s market capitalization by N16 billion, to N176.63 billion at market close today from N160.61 billion.
Stock performance in 2025
Champion Breweries is currently enjoying its best run ever. The stock has gained:
- 418% year-to-date
- 549.34% over the past 12 months
- 60.62% in the last month
These gains reflect both improved fundamentals and heightened investor confidence in the company’s turnaround story.
What’s driving the rally
According to its unaudited half-year 2025 results, revenue rose 67% to N15.93 billion, up from N9.54 billion in the same period of 2024. Profitability returned with a profit after tax of N2.29 billion, compared to a loss of N386.66 million last year.
Gross profit surged 111% to N7.89 billion, supported by a slower pace of cost increases, as cost of sales rose only 38% to N8.05 billion. Notably, the absence of foreign exchange losses, which totaled N910.74 million in H1 2024, played a crucial role in the turnaround.
Earnings per share also rebounded strongly, recovering to 25.57 kobo from a negative 4.94 kobo last year.
Champion Breweries, in the statement posted on the NGX, noted that the Bullet acquisition would provide immediate benefits, including improving FX earnings and distributor leverage, while unlocking long-term synergies through an integrated supply chain, product expansion, and operational efficiencies.
However, the acquisition may increase its potential exposure to FX risks.
How peers are performing
International Breweries Plc (up 140%)
International Breweries’ share price is up 140.38% year-to-date. The stock opened at N5.50 in January, peaked at N16.20, but now trades at N12.50 as of August 20, following a 9.75% dip.
The brewer reported a half-year profit of N61.5 billion, a turnaround from a N150.2 billion loss in H1 2024. Revenue climbed 39.49% to N340 billion in H1 2025, supported by strong sales growth and improved margins.
Nigerian Breweries Plc (up 113.4%)
Nigerian Breweries has gained 113.44% year-to-date, opening at N32 in January and reaching a 52-week high of N77 before easing to N68.30 as of August 20th, 2025. The company reported a pre-tax profit of N88.42 billion in H1 2025, compared to a loss of N85.20 billion in the same period last year. Revenue surged 54% to N738.14 billion, with reduced finance costs and FX gains lifting performance.
Guinness Nigeria Plc (up 99.57%)
Guinness Nigeria has also joined the rally, with shares up 99.57% year-to-date. The stock climbed from N70.25 at the start of the year to a peak of N155.80, before settling at N140.20 on August 20. The brewer recorded a pre-tax profit of N13.5 billion for Q2 2025, reversing a N13.2 billion loss a year ago. Year-to-date pre-tax profit now stands at N27.9 billion, compared to a N73.6 billion loss in H1 2024, driven by revenue growth of nearly 50% and lower FX losses.
Outlook
Champion Breweries’ acquisition of Bullet’s RTD portfolio adds a new growth engine to its business, signaling strong potential for revenue increase and diversification, as well as global market leverage.
The Brewery giant pulling off a remarkable turnaround, from heavy losses in 2024 to profitability in 2025, driven by strong sales growth, tight cost control, and zero FX losses, gives it a positive outlook in the long term.
However, its Bullet’s acquisition may increase its FX exposure, warranting caution. The stock’s trajectory will hinge on continued strong fundamentals and macroeconomic stability.