1 month ago
10 ARTICLE AD
Champion Breweries Plc has disclosed that it would be issuing new shares to the investing public to address its free-float deficiency on the Nigerian Exchange Limited.
The Managing Director, Dr. Inalegwu Adoga, stated this on Tuesday at the company’s ‘Fact Behind the Figures’ presentation at the NGX headquarters in Lagos.
Adoga said that the move is expected to bolster the company’s infrastructure and enhance its production capacity, enabling it to meet the growing demand for its products.
“To address free float deficiency, we have engaged with the NGX, and through their kind consideration and support, we have been able to come up with a compliance plan which has a targeted timeline of Q1 2025 and within this period, we shall be engaging in share divestment to retail market by way of public offer.
“It will help us address the free float deficiency requirement, help us raise fresh capital for the business, and help us fulfill our capacity to meet existing plans,” he added.
He noted that the company’s focus remains on delivering and returning value to shareholders through achieving increased profitability, driving operational efficiency, and growth of its market share.
He remarked on the company’s commitment to continuous improvement, saying, “Our nine months of 2024 performance reflects our ability to adapt and grow in a challenging environment. We are confident that our investments in operational efficiency, renewable energy, and market expansion will position us for even greater success in the coming years.”
During the presentation, Champion Breweries reported a strong revenue growth of 68 per cent, reaching N14.02bn in nine months of 2024, compared to the same period in 2023.
Despite the macroeconomic challenges, including the impact of foreign losses that resulted in a pre-tax profit of N178m, the company says it remains resilient, having fully settled its foreign liabilities in nine months of 2024 to mitigate FX volatility moving forward.
The Chairman of the Board of Champion Breweries, Mr. Imo-Abasi Jacob, 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,” he said.
The event 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.
Butler added that Champion Breweries, over the years has proven to be resilient and proven it can stand the test of time.
“Like all good businesses, it’s time for reinvestment, change, and time for some aggression to go into a market that’s been dominated by some larger players for a very long period. The vision for Enjoy Corp is very clear: we want to become the undisputed leader in the field in which we play, and that sector is the beverage sector. First of the acquisition by Enjoycorp is Champions Breweries,” Butler added.
In his welcome address, Chief Executive Officer, NGX, Jude Chiemeka, said consumer goods companies have a significant presence on the Exchange with 21 listed companies, including five in the beverage industry.
Chiemeka said, “Between 2020 and 2024, this sector generated N887bn in trade value, accounting for 13 per cent of the N7tn traded across all sectors. NGX continues to support the beverage sector by providing a robust platform for capital raising and liquidity through equity listings, bonds, and other asset classes, enabling companies to secure the capital necessary for growth.
“In 2024 alone, about two of the listed companies embarked on raising substantial capital on the Exchange, totaling N1.18 trillion, which underscores our commitment to facilitating strategic expansion. Over the last year, the brewery sector paid N29.3 billion in dividends and N39 billion in taxes. These have contributed to government revenue, supporting essential public services, infrastructure development, and driving broader economic growth.”
He added, “In the face of ongoing economic headwinds, we recognize and commend the efforts of the Champion Breweries board and management, in enhancing operations, promoting business, continuity and restoring investors’ confidence.”
