- Set to Comply with Free Float Requirement
Champion Breweries Plc has presented its annual report for the year ended 31 December 2016 to the Nigerian Stock Exchange (NSE) on Monday showing a significant profit growth of 588 per cent.
The company’s results presented showed that profit for the 2016 financial year grew to N530.4 million from N77.1 million recorded in 2015.
Despite the positive performance the company’s directors did not recommend any dividend for the 2016 year, same as in 2015.
The company’s shares currently listed on the consumer goods sector of the NSE consequently fell five per cent on Monday to close at N2.28 per share.
In 2016, the brewing and marketing company, made a total revenue of N3.9 billion, which increased 10 per cent from N3.5 billion posted for 2015. Champion Breweries almost doubled sales of goods which stood at N2 billion as against N1.2 billion in 2015, however, contract brewing and packaging, the second arm responsible for the total revenue of the company dropped to N1.9 billion from N2.3 billion recorded in 2015.
The Company provides contract brewing and packaging services to Nigerian Breweries Plc, a related party within the Heineken group asides from its primary involvement in the brewing and marketing of Champion Lager Beer and Champ Malta.
Further highlights of the brewers operating results shows that Operating profit increased to N617.6 million from N206.8 million, while profit before tax appreciated 203.2 percent to N637.3 million from N210.2 million.
Total Assets for the company declined four per cent to N9.961 billion from N10.3 billion in 2015, Shareholders fund grew to N7.7 billion from N7.1 billion. Liabilities of the company were also moderated to settle at 2.3 billion from N3.2 billion, while earnings per share increase to 7 kobo from 1 kobo
The company has also obtained the NSE’s approval to undergo restructuring following its free float deficiency of 17.30 per cent as against the requirement of 20 per cent.
“In other to comply with the free float requirement of the Nigerian Stock Exchange, the Board of Directors have initiated necessary steps to ensure that a minimum of 20 per cent of the Company’s issued shares are held by public investors” the company’s directors report read.
As at reporting date, The Raysun Nigeria Limited holds the highest per cent of the company’s ordinary shares at 61 per cent. Asset management Nominee holds 12 per cent, Akwa Ibom State Government 10 per cent while other shareholders holds 17 per cent of the company’s ordinary shares.