Champion Breweries Plc has unveiled an ambitious three-phase capital raise programme aimed at funding expansion, supporting new product lines and strengthening its balance sheet. Company executives disclosed the plan on Monday in Lagos during the firm’s “Facts Behind the Figures’’ presentation at the Nigerian Exchange Limited.
Dr Inalegwu Adoga, the brewery’s managing director, laid out the strategy, which will combine equity and debt financing with targeted acquisitions. The first phase will seek fresh equity from the public and existing shareholders, the second will tap debt markets through bonds, and the third will pursue strategic acquisitions to broaden the company’s portfolio and distribution footprint.
Under the initial phase, Champion Breweries plans a public offer of new shares that could raise up to N42 billion. That will be complemented by a rights issue to current shareholders with a target of up to N16 billion. According to Adoga, proceeds from these equity raises will support the integration and expansion of the company’s recent acquisition of an energy drink brand referred to in the presentation as Bullet, and will also cover working capital needs. “We intend to use the proceeds for the strategic acquisition of Bullet and to meet working capital requirements,” Adoga explained, describing the rights issue as critical to scaling the new product alongside the brewery’s core portfolio. He framed the plan as a balanced approach to funding growth without unduly increasing leverage.
The second phase centres on debt capital. Champion Breweries intends to establish a N45 billion bond issuance programme and to issue a N30 billion five-year unsecured Series 1 Bond as the first tranche.
Management said the funds will be invested in operational resources, including returnable packaging materials, enterprise resource planning systems, other software applications, and capital expenditure projects designed to raise production capacity and improve efficiency.
Adoga emphasised that the bond will finance tangible assets that support sustainable growth.
The proposed focus on returnable packaging is consistent with global shifts in beverage manufacturing and distribution toward circular economy principles.
The third phase targets inorganic growth through acquisition. Management is pursuing a beverage asset holding company to accelerate scale, diversify offerings and expand geographical reach. “This will enable Champion Breweries to scale and grow its offerings, expand footprint, and enhance earnings,” Adoga said. He added that the acquisition strategy is intended to complement organic investments and accelerate market penetration.Chairman ImoAbasi Jacob framed the capital plan within a broader sustainability agenda.
The company is investing in a transition of its entire brewery operations to solar power, supported by batteries and gas backup.
Leadership is also exploring conversions of diesel trucks to compressed natural gas and making significant investments in water treatment systems to reduce environmental impact and secure reliable water supply for production.
“We have reduced the amount of plastic waste arising from the company, thereby cutting down significantly on plastic bottles,” Jacob said. His comments positioned the sustainability programme not only as an environmental commitment but also as a cost management and brand-strengthening initiative.
Financial results for the first half of the year were presented alongside the capital plan. Rasheed Adebiyi, Chief Financial Officer, reported a 111 percent increase in gross profit from N3.73 billion in 2024 to N7.89 billion in the current period. Revenue rose by 67 percent, climbing from N9.54 billion to N15.93 billion. Management attributed the gains to improved sales volumes, pricing discipline and efficiencies from recent operational investments.
The exchanges’ managing director, Jude Chiemeka, praised Champion Breweries for combining financial performance with responsible business practices. Chiemeka noted the company’s market capitalisation has grown to N145 billion and highlighted dividend payments of N8.26 billion to shareholders between 2021 and 2024. He also drew attention to the company’s fiscal contribution, reporting N2.4 billion in taxes paid to the federal government over the same period.
