Champion Breweries Shows Resilience Despite Economic Challenges

May 24, 2024
Champion Breweries AGM

By Aduragbemi Omiyale

A key player in the Nigerian brewery industry, Champion Breweries Plc, has shown that it can withstand tough situations, as reflected in its 2023 financial year.

In the period under review, the brewer demonstrated the capacity to generate sustainable profits and create value for our stakeholders with a profit after tax of N371 million.

This occurred after escalated operating costs triggered by unfavourable macroeconomic conditions, which shrank the operating profit by 73.4 per cent to N604 million.

Last year, the federal government announced some policies like the removal of petrol subsidies, exchange rate unification that led to Naira devaluation and others.

These badly affected the economy and reduced the purchasing power of citizens, impacting the manufacturing sector, especially the beer sub-sector.

However, the different strategies implemented by the board and management of Champion Breweries resulted in a modest 3.4 per cent revenue growth compared with the 2022 fiscal year.

According to the Chairman of Champion Breweries, Mr Imo-Abasi Jacob, at the 48th Annual General Meeting (AGM) of the firm in Lagos, the company successfully launched three new products, implemented cost-saving measures, and commissioned a new Mash Filter, showcasing its commitment to innovation and operational excellence.

He announced to shareholders at the gathering a strategic acquisition that will further enhance the company’s market position and growth prospects.

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

He explained that this acquisition would strengthen Champion Breweries Plc’s market position and open new avenues for growth and collaboration.

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

At the AGM, shareholders, including Mr Boniface Okeizie, Mr Nwosu, and Mr Nonah Awoh, expressed their support for the organisation’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 to ensure the company implements strategies for growth and increased profitability to yield dividends.

Furthermore, they expressed their expectation of the key shareholders, EnjoyCorp and Akwa Ibom State Government, to drive the firm and create shareholder value in the capital market.

The shareholders’ support and approval of the resolutions demonstrate their confidence in the company’s performance and prospects.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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