Business News

Shareholders approve Champion Breweries’ 559 million shares allotment plan 

Shareholders of Champion Breweries Plc have approved the allotment of 559,249,714 unallocated and unissued ordinary shares of 0.50 kobo each, from the company’s authorized share capital proposed by the Board of Directors.

The approval which was granted by the shareholder was part of a special resolution at the company’s 48th Annual General Meeting (AGM) held in Lagos.

These shares according to the company would be distributed to shareholders listed in the company’s Register of Members as of the close of business on May 10, 2024.

The allotment will follow a ratio of one (1) ordinary share for every seven (7) ordinary shares held. The allocation will be financed with N519.1 million from the Company’s Share Premium Account and N40.149 million from the retained earnings.

Shareholders have also agreed that upon completion of the issuance process for the 559,249,714 bonus shares, and in accordance with Section 124 of the Companies and Allied Matters Act No. 3 of 2020 (as amended) and the Companies Regulations 2021, the remaining 26,002,286 unissued shares of the Company will be cancelled.

Additionally, shareholders have authorized the Directors to take all necessary lawful steps required by statute and regulations to implement the cancellation of these unissued shares.

Speaking during its 48th Annual General Meeting (AGM), the company’s Chairman, Mr. Imo-Abasi Jacob said that in 2023, revenue experienced a modest increase of 3.4% compared to the previous year, despite a significant contraction in market demand.

However, operating costs escalated due to unfavorable macroeconomic conditions, leading to a 73.4% decrease in operating profit from the previous year, resulting in an operating profit of N604 million for the year.

He stressed that despite facing economic challenges such as cash shortages, fuel subsidy removal, and currency fluctuations, Champion Breweries Plc exhibited resilience and adaptability throughout the year.

He revealed that EnjoyCorp Limited, a leading holding company in the food, beverage, and hospitality sectors, has acquired 100% of Heineken B.V.’s shareholding in The Raysun Nigeria Company Limited, including an 86.5% stake in Champion Breweries Plc.

He noted that the acquisition will strengthen Champion Breweries Plc’s market position and open new avenues for growth and collaboration.

Following the challenging business environment that significantly impacted the manufacturing sector, the company achieved a profit after tax of N371 million as against N1.407 billion in 2022 representing a drop of 73.63% YoY.

Champion Breweries plc has reported a profit before tax of N445 million for the year ended 31 December 2023, representing an 80% YoY decline from the N2.249 billion reported in 2022.

Champion Breweries reported revenue of N12.704 billion, representing a marginal YoY increase of 3.38% from the N12.289 billion reported the year prior.

The company closed flat on Friday, May 24, 2024, at N3.00 per share on the Nigerian Stock Exchange Champion Breweries began the year with a share price of N4.15 but has since lost 27.7% off the price valuation.