Champion Breweries to Address Free-float Deficiency by Issuing New Shares

Kayode Tokede 

The Managing Director, Champion Breweries Plc, Dr. Inalegwu Adoga, yesterday reaffirmed the company’s plans to address its free-float deficiency on the Nigerian Exchange Limited (NGX) by issuing new shares to the investing public. 

The key player in Nigeria’s brewing industry, according to  a  report has  3.58 per cent free float as against the minimum of 20 per cent of the issued and fully paid up shares for companies on the mainboard. 

Speaking to the capital market community during its “Facts Behind the Figures” in Lagos, Adoga stated that the initiative is expected to bolster the company’s infrastructure and enhance its production capacity, enabling it to meet the growing demand for its products.

“However, 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 fulfil 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 session, Champion Breweries reported a strong revenue growth of 68per cent, reaching N14.02 billion in nine months 2024, compared to nine of 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 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.

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

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 of time.,” Butler added. 

In his welcome address, Chief Executive Officer, Nigerian Exchange Limited (NGX), Mr. Jude Chiemeka, said the Consumer goods companies have a significant presence on the Exchange with 21 listed companies including five in the beverage industry.

“Between 2020 and 2024, this sector generated N887 billion in trade value, accounting for 13 per cent of the N7 trillion traded across all sectors. NGX continues to support the beverage sector by providing a robust platform for capital raising, 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, totalling N1.18 trillion, which underscores our commitment of 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.

“In the face of ongoing economic headwinds, we recognize and commend the efforts of Champion Breweries board and management, in enhancing operations, promoting business, continuity and restoring investors’ confidence.

Their dedication to these goals reflects resilience, adaptability that are essential in today’s market environment.”