Champion Breweries plans public offer by Q1’25

Champion Breweries Plc has disclosed plans to issue new shares to the public in the first quarter (Q1) of 2025.

Inalegwu Adoga, managing director Champions Breweries during the company’s “Facts Behind the Figures” presentation on
Tuesday at the Nigerian Exchange Limited (NGX).

The managing director added 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,” Adoga said.

“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.

He disclosed further that a compliance plan has been adopted to address this through the consideration of the NGX. Champion Breweries has 3.58 percent free float as against the minimum of 20 percent of the issued and fully paid-up shares for companies on the mainboard.

Read also: Champion Breweries to fix free float deficiency with public offer

Speaking on the company’s resilience amid economic crises, he said their nine months of 2024 performance reflects the 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,” he added.

During the session, Champion Breweries reported a revenue growth of 68 percent, reaching N14.02 billion in 9 months 2024, compared to 9 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 of 2024 to mitigate FX volatility moving forward,” the company stated.

Imo-Abasi Jacob, chairman, Board of Champion Breweries, expressed confidence in the Company’s strategic direction.

According to him, “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.”

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.

EnjoyCorp’s industry expertise and operational insights according to the company have driven transformative initiatives within Champion, with a focus on cost management, market expansion, and customer-centric innovations.