Champion Breweries secures US$12.45M funding approval to boost operations, market expansion
NIGERIA – Champion Breweries Plc, a leading brewery in Nigeria, has received shareholder approval to raise N20 billion (US$12.45M) through bond issuances and share offerings, enabling the company to expand its operations and enhance its market presence.
The resolutions were passed during the company’s recently concluded extraordinary general meeting, signaling a significant step forward in the brewer’s growth strategy.
The funding plan includes the issuance of up to 1,579,058,099 ordinary shares to meet the Nigerian Exchange Limited’s free float requirement.
This initiative is expected to improve market liquidity, finance key infrastructure projects, expand production capacity, and enhance operational efficiency.
In addition, the brewery will launch an N15 billion bond programme and an N5 billion series 1 bond issuance through a dedicated funding vehicle. These financial instruments are aimed at providing a stable foundation for Champion Breweries’ long-term growth and operational stability.
“These approvals represent a bold and necessary step for Champion Breweries as we position ourselves for the next phase of growth,” said Imo-Abasi Jacob, Chairman of the Board.
“With the backing of our shareholders, we are well-equipped to enhance our operational capacity, meet regulatory requirements, and deliver exceptional value to all stakeholders. This marks the beginning of an exciting new chapter in our journey.”
The funding initiative comes on the heels of impressive financial performance in 2024. In the third quarter, Champion Breweries reported a 67.63 percent increase in revenue to N14 billion (US$8.7M), up from N8.36 billion (US$5.2M) in the corresponding period in 2023. Profit after tax stood at N21.50 million (US$13.4K).
Over the first nine months of 2024, sales rose by 68 percent, reflecting the company’s adaptability and resilience in a challenging market environment.
The brewery has also taken steps to address its free-float deficiency on the Nigerian Exchange Limited by issuing new shares, as hinted in October.
Managing Director Inalegwu Adoga affirmed, “Our nine-month performance reflects our ability to adapt and grow. Investments in operational efficiency, renewable energy, and market expansion will drive even greater success in the years to come.”
Champion Breweries’ progress follows its June 2024 divestment of an 86.5 percent stake to EnjoyCorp Limited, marking the latter’s strategic entry into the beverage sector.
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