Promotion Expenses and Profitability of Listed Manufacturing Company in Nigeria:an Empirical Evidence from Champion Breweries Plc

The link between promotion expenses and firm performance has been discussed and carefully studied for decades. Vast amount of research have been carried to figure out whether this relationship exists or not. Some researchers advocate that there is no relationship between promotion expenditures and firm performance, yet others suggest the existence of negative or positive relationship. This study is on promotion expenses and profitability of listed manufacturing company in Nigeria: An Empirical Analysis of Champion Breweries Plc. The research study is a survey and ex-post facto research design. A sample size of 29 staff of the company was selected using Taro Yamane formula. The study employed the use of questionnaire to obtain the data for the study. It made use of descriptive and inferential statistics specifically, tables and percentage to analyse data collected and regression analysis was used to test the hypotheses at 5% level of significance. Finding of the study revealed that promotion expenses measured as advertising expenses, research and development expenses as well as marketing and distribution expenses do not have significant influence on return on assets (ROA) of Champion Breweries Plc in Nigeria. Based on this and other findings, the study recommended among others that manufacturing companies should review the company's cost structure to identify areas where promotion expenses might be reduced without impacting effectiveness. This includes assessing whether the expenses align with industry benchmarks. Improve overall operational efficiency, as lower costs can improve profitability even if promotion expenses are maintained.