Champion Breweries Plc has hinted on plans to raise capital by issuing new shares to the public in the first quarter (Q1) of 2025.
Inalegwu Adoga, Managing Director, Champions Breweries, disclosed at the company’s “Facts Behind the Figures” presentation at the Nigerian Exchange Limited (NGX) that the public offer will enable them to raise funds for the business and increase their capacity and meet existing demand.
“We intend to issue new shares to the public to achieve the required free float of 20 percent. Over the years we have been having a free float requirement deficiency which has put us at the risk of being delisted from the exchange.
“We have been able to come up with a compliance plan which has a timeline of Q1 2025 and between this time we shall be engaging in a share divestment to the retail market by way of a public offer,” he said.
While decrying the harsh operating environment in the country which affected the brewery industry in the financial year 2023, Adoga noted that despite the difficult situation, Champion Breweries was the only firm in the industry that posted profit during the period under review.
He noted that the proposed capital raising exercise is expected to bolster the company’s infrastructure and enhance its production capacity, enabling it to meet the growing demand for its products.
Adoga also highlighted the company’s new strategic direction under the core ownership of EnjoyCorp Limited, whose Managing Director, David Butler, also serves as a Director on Champion’s Board.
“EnjoyCorp’s industry expertise and operational insights have driven transformative initiatives within Champion, with a focus on cost management, market expansion and customer-centric innovations. Now under the leadership of EnjoyCorp Limited, Champion Breweries is poised for continued growth and market leadership in Nigeria’s dynamic beverage sector,” Adoga added.
In his presentation on the figures, Rasheed Adebiyi, Chief Financial Officer, Champion Breweries, said: “Champion Breweries reported a strong revenue growth of 68 percent, reaching N14.02 billion in nine months 2024, compared to nine months 2023. Despite the macroeconomic challenges, including the impact of foreign exchange (FX) losses that resulted in a pre-tax profit of N178 million, the company remains resilient, having fully settled its foreign liabilities in nine months 2024 to mitigate FX volatility moving forward.”
Adebiyi noted that cost optimisation impacted on its operation, adding: “Successful implementation of cost-saving measures, including the shift to renewable energy and localisation of supply chains, will impact on its future operations.”
Mr Imo-Abasi Jacob, Chairman of the Board of Champion Breweries, expressed confidence in the company’s strategic direction, stating: “Champion Breweries has demonstrated resilience and commitment to its shareholders and stakeholders, despite the turbulent economic conditions.
“Our focus on operational efficiency, cost reduction and market expansion reflects our determination to deliver sustainable value and growth. We are confident that with our renewed leadership and strategic initiatives, Champion will continue to thrive as a significant player in Nigeria’s beverage industry.”
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