Champion Breweries Gains 33% after Shares Transfer Deal
Champion Breweries Plc recorded more than 32% gain after the company ownership transfer deal. According to data from the Nigerian Exchange, the local brewer stock market price increased by 32.54% in three days, from N2.95 to N3.91 per share on Friday.
In sum, Champion breweries Plc value has inched higher to N34.986 billion, spread over its 8.947 billion shares outstanding on the Nigerian Exchange.
In a notice, management announced that EnjoyCorp Limited has successfully completed the acquisition of 86.5% stake in Champion Breweries plc, a prominent figure in the regional brewing industry.
In the shareholding transfer deal, EnjoyCorp acquired 100% shareholding in the Raysun Nigeria Limited, which in turn holds the 86.5% stake in Champion Breweries plc.
Having cleared and obtained approval from Federal completion and consumer protection commission, the parties have successfully completed the transaction, and EnjoyCorp has taken full control of 100% shares in the Raysun Nigeria Limited accordingly.
In the first quarter of 2024, Champion Breweries surged significantly year on year, up by 69.36% year on year from N2.585 billion in Q1-2023 to N4.378 billion.
The company saw costs of sales accelerating faster, up by 72.8% year on year to N2.869 billion from N1.660 billion in the comparable period in 2023.
Gross profit margin climbed 63.20% year on year to N1.508 billion at the end of first quarter of 2024 from N924 million 12 months comparable period.
The company posted loss as huge overheads and forex loss damage its earnings performance in the first quarter of the year. Due to more than N743 million loss due to fluctuation in exchange rate, Champion Breweries Plc post tax loss widened to N824 million from N96.576 million net loss posted in Q-1-2023.
Champion Breweries Plc’s total equity declined to N10.371 billion in the first quarter of 2024, from N11.195 billion at the end of financial year 2023. #Champion Breweries Gains 33% after Shares Transfer Deal
