Mad Returns: Champions Breweries gains over 30% in just 3 trading sessions

Champions Breweries’ share price posted gains of 32.52%% last week, leading the top gainers of the 3-day trading week. The gains seen in Champions Breweries is part of the growing trend of brewery stocks on the stock exchange in which majority have been posting gains as a result of improved financial performance.

In the last four weeks, we have seen CHAMPION gain over 57% from N2.12 to currently stand at N3.34 per share. Its market capitalization currently stands at N26,150,518,189.76, also gaining over 30% in just three trading sessions.

CHAMPION is the top performer in what turned out to be a very bullish and record-breaking week for the Nigerian Exchange, as its All-Share Index gained 2.61% to currently stand at 50,935.03 basis points. For the first time in 14 years, the NGX crossed the 50,000 BP threshold on the back of strong earning reports and increased local participation.

During the three-day trading week, 49 equities appreciated in price during the week, lower than 56 equities in the previous week. Also, during the week, 32 equities depreciated in price, higher than 26 equities in the previous week. 75 equities remained unchanged higher than 74 equities recorded in the previous week.

What you should know

  • Champion Breweries Plc is an established brewery in Nigeria manufacturing Champion Lager Beer and Champ Malta as well as a selection on non-alcoholic beverages. The company also brews and packages products under contract to Nigerian Breweries Plc.
  • The main brands in its product portfolio are Champion Lager Beer and Champ Malta. The company has undergone a number of name changes; established as Southeast Breweries Limited, the name changed to Cross River Breweries Limited and thereafter to Champion Breweries Limited which was later changed to Champion Breweries Plc.
  • The rally in its share price came after the company released its first-quarter financial report for the year 2022. The report revealed a significant increase in its revenue.
  • The company was able to grow its revenue by 39.76% from N2.4 billion to N3.3 billion Year-on-Year. As a result of a reduced selling and distribution expense in the first quarter of 2022 by 16.32%, the company was able to increase its profit from operating activities by 138.72%.
  • After which, despite an increase in income tax by 138.72%, the company’s profit after tax (PAT) gained approximately 162% from N211.9 million to N544.2 million.
  • During the 3-day trading week, we saw a spike in the volume of CHAMPION shares, with more shares changing hands than average. The highest volume during the three-day trading week was posted on Friday, as it recorded a volume of 4,861,123.
  • Also on Friday, its share price traded at a 52-week high of N3.34 as it gained 9.87% on the trading day in question.
  • CHAMPION began the year with a share price of N2.35 and has since gained approximately 42.1% on that price valuation, ranking the 20th on the NGX in terms of year-to-date performance.
  • MEYER’s share price has also appreciated over 57% over the past four-week period alone, the fifth best on the NGX.

Champion Breweries is the 58th most traded stock on the Nigerian Stock Exchange over the past three months. CHAMPION has traded a total volume of 59.2 million shares, in 1,375 deals, valued at N140 million over the period, with an average of 940,180 traded shares per session. A volume high of 6.46 million was achieved on April 25th, the same day it released it Q1 2022 report.

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