SHAREHOLDERS APPROVE CHAMPION BREWERIES ’ 559 MILLION SHARES ALLOTMENT PLAN

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!

Olori Uwem

Active Member
Mar 18, 2024
863
45
28
SHAREHOLDERS APPROVE CHAMPION BREWERIES ’ 559 MILLION SHARES ALLOTMENT PLAN

Shareholders of Champion Breweries Plc approved the allotment of 559,249,714 unallocated and unissued ordinary shares at the company’s 48th Annual General Meeting (AGM) in Lagos. The shares will be distributed to shareholders listed in the company’s Register of Members as of May 10, 2024. The allotment ratio is one share for every seven shares held, financed with N519.1 million from the Share Premium Account and N40.149 million from retained earnings.

Shareholders also agreed to cancel the remaining 26,002,286 unissued shares upon completion of the bonus share issuance, in accordance with regulatory requirements. The Directors were authorized to take necessary steps to implement the cancellation.

During the AGM, Chairman Imo-Abasi Jacob noted a 3.4% revenue increase in 2023 despite market demand contraction. However, operating profit decreased by 73.4% due to higher operating costs, resulting in N604 million in operating profit. The company faced economic challenges but remained resilient. EnjoyCorp Limited acquired 100% of Heineken B.V.’s shareholding in The Raysun Nigeria Company Limited, including an 86.5% stake in Champion Breweries, potentially strengthening the company's market position.

Financially, Champion Breweries reported a profit after tax of N371 million, a 73.63% decrease from 2022, and a profit before tax of N445 million, an 80% decline from the previous year. Revenue increased by 3.38% to N12.704 billion. The company's share price closed at N3.00 on May 24, 2024, down 27.7% from the beginning of the year.