Champion Breweries Plc has announced plans to raise capital by issuing new shares to the public in the first quarter of 2025. This strategic move aims to bolster the company's capacity and align with the Nigerian Exchange Limited’s (NGX) free float requirements. Inalegwu Adoga, Managing Director of Champion Breweries, revealed this during the company’s Facts Behind the Figures presentation at NGX, stating that the public offer will help the brewery meet growing demand and achieve its free float target of 20%.
Champion Breweries has faced a deficiency in its free float requirements, putting the company at risk of being delisted from the Nigerian Exchange. The upcoming share issuance will be part of a broader compliance plan designed to resolve this issue by Q1 2025. Adoga explained that the capital raising exercise will involve a share divestment to retail investors through a public offer, helping the company meet regulatory requirements and ensure its continued presence on the exchange.
Despite the harsh economic environment in Nigeria, Champion Breweries has remained resilient. In 2023, the brewery industry faced numerous challenges, yet Champion Breweries was the only firm in the sector to post a profit. The company’s strategic approach, under the core ownership of EnjoyCorp Limited, has been pivotal to its success. David Butler, Managing Director of EnjoyCorp Limited, also serves as a Director on Champion Breweries' Board, bringing valuable industry expertise and operational insights.
Adoga noted that EnjoyCorp has driven transformative initiatives at Champion Breweries, focusing on cost management, market expansion, and customer centric innovations. These efforts are positioning the company for continued growth and market leadership within Nigeria’s dynamic beverage sector.
Rasheed Adebiyi, Chief Financial Officer of Champion Breweries, highlighted the company’s impressive financial performance during the first nine months of 2024. Champion Breweries reported a 68% revenue growth, reaching N14.02 billion, compared to the same period in 2023. Despite challenges such as foreign exchange (FX) losses, which resulted in a pre tax profit of N178 million, the company remains resilient. Adebiyi mentioned that the company has fully settled its foreign liabilities in 2024, which will mitigate FX volatility moving forward.
Champion Breweries' focus on cost saving measures, including the shift to renewable energy and the localisation of supply chains, is expected to positively impact its future operations. These initiatives will enhance the company's infrastructure and production capacity, enabling it to meet the growing demand for its products.
Imo Abasi Jacob, Chairman of the Board of Champion Breweries, expressed confidence in the company’s strategic direction and leadership. He praised the company's resilience in navigating Nigeria’s challenging economic conditions and emphasized its commitment to operational efficiency, cost reduction, and market expansion.
Champion Breweries has demonstrated resilience and commitment to its shareholders and stakeholders. With our renewed leadership and strategic initiatives, Champion will continue to thrive as a significant player in Nigeria’s beverage industry, Jacob stated.
Champion Breweries' capital raising plans, set for Q1 2025, are expected to strengthen the company’s financial position and help it meet both regulatory requirements and market demand. Under the guidance of EnjoyCorp Limited and its renewed focus on cost management, market expansion, and innovation, Champion Breweries is poised for continued growth and success in Nigeria’s competitive beverage market.