Champion Breweries : BREW. PLC.- QUARTER 1 - FINANCIAL STATEMENT FOR 2024

Champion Breweries Plc

RC: 13388

Unaudited Condensed Interim Financial Statements

For the Three Months Ended 31st March 2024

Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

Table of Contents	Page
Condensed interim income statement	2
Condensed interim statement of other comprehensive income	3
Condensed interim statement of financial position	4
Condensed interim statement of changes in equity	5
Condensed interim statement of cash flows	6
Notes to the condensed interim financial statements	7 -11

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

** See note 14 for disclosure on restatement

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

CONDENSED I NTERI M STATEMENT OF OTHER
COMPREHENSI VE I NCOME
For the three monthsperiod ended 31st March 2023
	Year to date	Year to date
	31st March	31st March
	2024	2023
	N'000	N'000
Profit/(Loss) for the period	(823,838)	(96,576)
Other comprehensive income, net of tax	-	-
Total comprehensive income for the period	(823,838)	(96,576)
Basic and diluted earnings per share (kobo)	(10.52)	(1.23)

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

CONDENSED CONSOLI DATED I NTERI M STATEMENT OF FI NANCI AL POSI TI ON
As at:	31st March			31st December
	2024	2023
	N'000			N'000
Assets
Non-current assets
Property, plant and equipment	14,622,082	15,117,284
Right of use asset	211,728	233,243
	14,833,810	15,350,527
Current assets
Inventories	2,423,034	2,226,251
Trade and other receivables	329,810	384,066
Prepayments	231,219	92,885
Other asset	151,077	54,735
Cash and cash equivalents	2,896,648	2,444,615
	6,031,788	5,202,552
Total assets	20,865,597	20,553,079
Equity & Liabilities
Equity
Share capital	3,914,748	3,914,748
Share premium	519,100	519,100
Other Reserves	3,701,612	3,701,612
Accumulated losses/gains	2,236,001	3,059,838
	10,371,461	11,195,298
Liabilities
Non-current liabilities
Lease Liability	218,513	127,062
Retirement Benefit Obligation	686,261	629,808
Long Service Award	55,923	47,637
Deferred tax laibility	584,867	584,867
	1,545,564	1,389,374
Current Liabilities
Trade and other payables	5,147,922	5,553,164
Borrowings	1,990,218	1,346,065
Contract liabilities	290,099	308,355
Income tax liabilities	159,292	133,865
Provision	1,361,041	508,873
Lease Liabilities	0	118,084
	8,948,572	7,968,406
Total liabilities	10,494,137	9,357,781
Total equity and liabilities	20,865,597	20,553,079

Approved by the Board of Directors on April 25th, 2024, and signed on its behalf by:

__	Mr. Imo-Abasi Jacob (Chairman) FRC/2018/ICAN/00000018401
__	Dr Adoga Inalegwu (Managing Director) FRC/2023/PRO/IODN/002/264925
Additionally certified by:

Mr. Rasheed Adebiyi (Chief Finance Officer) FRC/2023/PRO/ICAN/001/423509

The notes on pages 7 to 11 are an integral part of these financial statements.

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

Condensed Interim Statement of Changes in Equity
For the three-months period ended 31st March, 2024
			Share	Share	Accumulated	Other
			capital	premium	loss	reserves	Total
			N'000	N'000	N'000	N'000	N'000
Balance at 1	st	January 2024	3,914,748	519,100	3,059,838	3,701,612	11,195,298
Profit/(Loss) for the period	-	-	(823,838)		(823,838)
Other comprehensive income for the period	-	-	-	-	-
Total comprehensive income for the period	-	-	(823,838)	-	(823,838)
Balance as at 31st March, 2024	3,914,748	519,100	2,236,001	3,701,612	10,371,461
Condensed interim statement of changes in equity
(Re-stated)
For the three months period ended 31st March 2023
			Share	Share	Accumulated	Other
			capital	premium	loss	reserves	Total
			N'000	N'000	N'000	N'000	N'000
Balance at 1	st	January 2023	3,914,748	519,100	2,983,924	3,701,612	11,119,384
Profit/(Loss) for the period	-	-	(96,576)	-	(96,576)
Total comprehensive income for the period	-	-	(96,576)	-	(96,576)
Balance as at 31st March, 2023	3,914,748	519,100	2,887,348	3,701,612	11,022,808

The notes on pages 7 to 11 are an integral part of these financial statements.

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

Condensed I nterim Statement of Cash Flows
For the 3 months period ended 31st March, 2024
	2024	2023
	N'000	N'000
Profit/(Loss) for the period	(823,838)	(96,576)

Adjustments for non- cash items:

Depreciation of PPE Depreciation of ROU Assets Finance Cost (Foreign Exchange Loss) Interest on Lease Liability

Income tax and other accruals

486,674	352,409
28,090	39,419
743,279	24,519
7,517
-	(40,663)

	441,722	279,108
Changes in working capital:
Inventories	(196,782)	(117,497)
Trade and other receivables	54,256	14,595
Prepayments	(138,334)	(132,931)
Other assets	(96,342)	(548,297)
Trade and other payables	90,509	1,140,400
Contract liability	(18,256)	(89,930)
Employee benefits	64,739	-
Provisions	852,168	(83,107)
Cash generated from operation	1,053,679	462,343
VAT paid	(386,345)	(133,660)
PAYE and WHT & other taxes	(116,175)	(15,878)
Net cash from operating activities	551,159	312,804
Cash flows from investing activities
Finance income	-	6,888
Acquisition of property, plant and equipment	-	(928,851)
Net cash used in investing activities	-	(921,963)
Cash flows from financing activities
Payment of Lease liabilities		(17,292)
Repayment of loans and borrowings	(99,126)
Net cash used in financing activities	(99,126)	(17,292)
Total Cash Movement for the period ended 31st March	452,033	(626,451)
Cash and cash equivalents at 1st January	2,444,615	2,188,805
Cash and cash equivalents at 31st March	2,896,648	1,562,354
Represented by:
Cash balance	2,896,648	1,562,354
Bank Overdraft	-	-
Cash and cash equivalents at 31st March	2,896,648	1,562,354

The notes on pages 7 to 11 are an integral part of these financial statements.

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

Notes to the condensed interim financial statements

1. REPORTING ENTITY

Champion Breweries Plc ('the Company'), was incorporated in Nigeria as a limited liability Company on 31July 1974 and was later converted to a public limited liability Company on 1 September 1992. The address of the Company's registered office is Industrial layout, Aka Uffot, Uyo, Akwa Ibom State, Nigeria.

The Company is involved in the brewing and marketing of Champion lager beer, Champion Ginger beer, Champ Malta & Champ Malt with Butter Cookies and Champ Malt with Tigernut. The company also provides contract brewing and packaging services to Nigerian Breweries Plc, a related party within the Heineken group.

The financial statements of Champion Breweries Plc as at and for the year ended 31st December 2023 are available on the Company's registered website www.championbreweries.com

2. BASIS OF PREPARATION

1. Statement of compliance
   These condensed interim financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34 'Interim Financial Reporting'. They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of Champion Breweries Plc as at and for the year ended 31st December 2023.
   These condensed interim financial statements were approved by a written resolution of the Board of Directors of the Company on April 25th, 2024.
2. Functional and presentation currency
   These condensed interim financial statements are presented in Naira, which is the Company's functional currency. All financial information presented in Naira has been rounded to the nearest thousand unless stated.
3. Use of estimates and judgements
   The preparation of financial statements in conformity with IFRS requires management to make judgements, estimate and assumptions that affects the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
   In preparing these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended 31st December 2023.

3. SIGNIFICANT ACCOUNTING POLICIES

1. General
   The accounting policies applied in these condensed interim financial statements are the same as those applied in the Company's financial statements as at and for the year ended 31st December 2023.
2. Income tax
   Income tax expenses are recognised based on management's best estimate of the weighted average expected full year income tax rate.

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

4. SEASONALITY

The performance of the Company is subject to seasonal fluctuations as a result of weather conditions and festivities. The Company's full year results and volumes are depended on the performance in the peak-selling season, typically resulting in higher revenue and profitability in the last quarter of the year. The impact from this seasonality is also noticeable in several working capital related items such as inventory, trade receivables and payables.

5. ANALYSIS OF EXPENSES BY NATURE For the three-monthsperiod ended 31st March:

EXPENSES BY NATURE

Raw materials & consumables

Advertising & sales expenses

Depreciation and amortization

Employee Benefits

Repairs & maitenance

Energy & water

Other Fixed Expenses

Distribution Expenses

Total cost of sales, selling and distribution and administration expenses

EXPENSES BY NATURE

Cost of Sales

Selling & Distribution Expenses

Administrative Expenses

Total cost of sales, selling and distribution and administration expenses

Year to date	Year to date
31st March	31st March
2024	2023
N'000	N'000
1,855,702	976,655
108,581	43,338
514,500	391,829
610,308	392,456
188,999	191,951
734,639	415,169
215,277	135,063
214,820	182,097
4,442,826	2,728,557

Year to date	Year to date
31st March	31st March
2024	2023
N'000	N'000
2,869,778	1,660,431
970,691	649,542
602,357	418,584
4,442,826	2,728,557

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Champion Breweries Plc

Condensed Interim Financial Statements for the Three months period ended - 31st March 2024

1. NET FINANCE COST
   Net finance cost for the three-month period ended 31st March 2024 amounted to ₦751million (Three-month period ended 31st March 2023: ₦18million).
2. 1. Finance income for the three-month period ended 31st March 2024 amounted to ₦ Nil (three-month period ended 31st March 2023: ₦6.9million).
   2. Foreign exchange loss and interest on the loan amount for the three-month period ended 31st March 2024 amounted to ₦743million (three-month ended 31st March 2023 ₦ Nil).
   3. Other net finance expenses for the three-months period ended 31st March 2024 amounted to ₦7.5million (three- months ended 31st March 2023: ₦24.5miilion).
3. INCOME TAX EXPENSES
   Minimum tax in current period has been computed based on 0.5% of turnover in line with the finance act of 2020 and this amounts to ₦25.4 million (2023: ₦40.6 million).

8. PROPERTY PLANT AND EQUIPMENT

Acquisitions

During the three-months period ended 31st March 2024 the Company acquired, property, plant and equipment with a cost of N Nil (three-months period ended 31st March 2023: ₦929 million).

Capital commitments.

The Company's capital expenditure commitments for property, plant and equipment for the three-month period ended 31st March 2024 amounted to ₦ Nil (three-month period ended 31st March 2023: ₦4.97 billion).

1. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
   Financial risk management
   The aspect of the Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements as at end for the year ended 31st December 2023.
2. CONTINGENCIES
   No material updates in comparison with 2023 year-end reporting were identified that need to be reported.
3. RELATED PARTY TRANSACTIONS
   The Company has related party relationships with its parent company, Heineken N.V. and Heineken group entities. These transactions are conducted on terms comparable to transactions with third parties. The related party transactions in the first three-months period ended 31st March 2024 do in substance does not deviate from the transactions as reflected in the financial statements as at and for the year 31st December 2023.
4. SUBSEQUENT EVENTS
   There are no significant subsequent events, which could have had a material effect on the state of affairs of the Company as at 31st March 2024 that have not been adequately provided for or disclosed in these condensed interim financial statements.

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