By Taiye Olayemi
Champion Breweries Pl says it plans to embark on a three-phase capital raise plan to boost expansion and drive profitability.
Its Managing Director, Dr Inalegwu Adoga, made the disclosure on Monday in Lagos during the company’s “Fact Behind the Figures’’ presentation at the Nigerian Exchange Ltd. (NGX).
Adoga, who outlined the company’s growth strategy and sustainability agenda, said the programme would be executed through public offer and rights issues, debt capital raise, and strategic acquisitions.
He said in view of the company’s acquisition of an energy drink, the rights issue was neccesary to aid its expansion.
Adoga explained that under the first phase, Champion Breweries would raise up to N42 billion through a public offer of new shares to the general public.
He added that the company would also undertake a rights issue to its existing shareholders with a target of up to N16 billion.
“The proceeds will be used for the strategic acquisition of bullet, and to meet working capital requirements,” he said.
The second phase, Adoga noted, involved a debt capital raise through a bond issuance.
“We plan to establish a N45 billion bond issuance programme and issue a N30 billion five-year unsecured Series 1 Bond,” he said.
He explained that proceeds from the bond would be channelled into investments in business resources such as returnable packaging materials, enterprise resource planning systems, other software applications, and capital expenditure expansion.
The third phase, he said, focused on acquisition.
“The company is pursuing the acquisition of a target beverage asset holding company.
“This will enable Champion Breweries to scale, inorganically grow its offerings, expand footprint, and enhance earnings,” he said.
Adoga assured shareholders and stakeholders that the programme was designed to position the company for long-term growth and competitiveness in Nigeria’s beverage industry.
Earlier, Mr ImoAbasi Jacob, Chairman of Champion Breweries, said the company was investing in a sustainability strategy focused on delivering positive impact.
“We are investing significantly in transitioning the entire brewery to solar power, with battery and gas backup.
“The team is also evaluating opportunities to convert diesel trucks to run on compressed natural gas (CNG).
“We are also making significant investments in sustainable water treatment to ensure access to clean water while minimising environmental impact.
“We have reduced the amount of plastic waste arising from the company, thereby cutting down significantly on plastic bottles,” he said.
Giving an account of the company’s financials for the first half of the year, Mr Rasheed Adebiyi, Chief Financial Officer of Champion Breweries, said the company recorded a 111 per cent growth in gross profit from N3.73 billion in 2024 to N7.89 billion.
He said revenue also grew by 67 per cent, from N9.54 billion to N15.93 billion.
Also speaking, Mr Jude Chiemeka, Managing Director of the NGX, commended Champion Breweries for its responsible business practices.
Chiemeka said that the company’s market capitalisation had risen to N145 billion and that it had paid N8.26 billion in dividends to shareholders from 2021 to 2024.
He added that the company also paid N2.4 billion in taxes to the federal government within the same period. (NAN) (www.nannews.ng)
