• Friday, June 14, 2024
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Champion Breweries sees further growth as EnjoyCorp acquires 86.5% equity stake

Champion Breweries sees further growth as EnjoyCorp acquires 86.5% equity stake

Champion Breweries Plc has reported an impressive financial performance and strategic milestones achieved during the fiscal year 2023.

Speaking during its 48th Annual General Meeting (AGM) held in Lagos, Imo-Abasi Jacob, the company’s Chairman stated that its audited financial results for 2023 reveal remarkable progress, with substantial gains across various financial metrics.

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In addition to its financial achievements, Jacob announced a strategic acquisition that will further enhance the company’s market position and growth prospects.

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

This acquisition will strengthen Champion Breweries Plc’s market position and opens new avenues for growth and collaboration.

In 2023, revenue experienced a modest increase of 3.4 percent 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 percent decrease in operating profit from the previous year, resulting in an operating profit of N604 million for the year.

Despite the challenging business environment that significantly impacted the manufacturing sector, the company achieved a profit after tax of N371 million, demonstrating our capacity to generate sustainable profits and create value for our stakeholders.

“We extend our appreciation to Heineken for its invaluable contribution to Champion Breweries Plc and welcome EnjoyCorp’s commitment to our growth trajectory,” Jacob added. “With this acquisition, we are confident in our ability to drive sustainable growth and value for all stakeholders.”

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At the AGM, shareholders, including Boniface Okezie, Sunny Nwosu, and Nonah Awoh, expressed their support for the company’s performance and approved resolutions related to the issuance of bonus shares, the cancellation of unissued shares, and the amendment of the company’s Memorandum of Association.

The resolutions aim to optimize the company’s share capital structure and align it with regulatory requirements. The shareholders also urged the Board and Management to continuously take steps in ensuring the Company implements strategies for growth and increased profitability to yield dividends for the Company. Furthermore, they expressed their expectation of the key shareholders, EnjoyCorp and Akwa Ibom State Government, to drive the Company and create shareholder value in the capital market.