• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Opinions Blurb

Before You Buy, Here Are 10 Things You Need To Know About Champion Breweries

Nairametrics by Nairametrics
September 24, 2014
in Blurb
Share on FacebookShare on TwitterShare on Linkedin

Champion Breweries joined the gainers chart today gaining 4.7% to close at N9.45. This caught the attention of one of my subscribers who sent me a message asking if this was a right stock to buy. My response was a swift No. However, rather than just give a simple answer I thought it was important to put some things into perspective regarding this stock.

1. Champion Breweries has 4 major share holders Raysum Nigeria Ltd (57%), Asset Management Nominee 13.36%, Union Trustees Ltd (9%), Akwa Ibom Investment (8.39%). That is a total 87.7%. Raysum is owned by the Heineken Group

2. The company has a total outstanding shares of 900m units. They recently embarked on a rights issue (which closed September 10th 2014). The rights issue involved giving shareholder on the register as at 7th May 2014 a chance to buy 7 new shares for every 1 held at a price of N1.85 per share.

RelatedStories

FMCGs

FMCGs record 133% increase in finance cost in 2024  

November 26, 2024
Champion Breweries Plc

Champion Breweries to issue 1.58 billion shares, targets N15 billion ahead of Extraordinary General Meeting 

November 21, 2024

3. This will help the company raise N11.65billion by issuing 6.3billion new shares. The company will then have a post rights issue shares of 7.2billiob units.

4. After the rights issue the company’s theoretical ex price will be about N2.8

5. Currently the share price is N9.45 which should be worth about N2.8 per share after the rights issue. Those who bought at the rights issue price of N1.85 will still probably have an upside of 51%. Therefore, the higher the share price rises the more upside there is for pre-offer shareholders

6. Champion Breweries 2013 FY results was a N1.1billion loss. The company has also posted a 884million loss in the first half of 2014. It is currently a chronic loss making company.

7. Champion Breweries also has a negative retained earnings of N9.7billion.  It can therefore not pay dividends until it makes profits that surpasses that amount.

8. The company has just N129million in its share premium as such it can also not rely on setting off share premium with negative retained earnings to pay dividends. It should gain about N11billion in share premium after its rights issue. However, setting that off against the negative retained earnings is as good as refunding shareholders their money.

9. By my estimates, this company needs at least 2 years to turn to profitability and another one year to pay dividends.

10. The only upside for a retain investor, in my opinion is probably via sentiment induced movements by the market. This is not a stock for a value investor.

 

Tags: ANALYSISChampion breweries
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Related Posts

FMCGs
Consumer Goods

FMCGs record 133% increase in finance cost in 2024  

November 26, 2024
Champion Breweries Plc
Companies

Champion Breweries to issue 1.58 billion shares, targets N15 billion ahead of Extraordinary General Meeting 

November 21, 2024
Champion Breweries Plc
Blurb

Champion Breweries targets retail investors for expansion: Key takeaways 

October 21, 2024
Champion Breweries Plc
Blurb

The acquisition of Champion Breweries: What is in it for minority shareholders? 

June 21, 2024
Champion Breweries Plc
Companies

EnjoyCorp Limited completes acquisition of 86.5% stake in Champion Breweries  

June 19, 2024
Champion Breweries Plc
Company News

Champion Breweries reports an 80% YoY decline in pre-tax profit in 2023

April 8, 2024
Next Post

Aig-Imoukhuede Is The New President of The Nigerian Stock Exchange

Comments 1

  1. d4gmail says:
    September 24, 2014 at 9:28 pm

    nice

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Air India’s London-bound Boeing jet crashes after takeoff, dozens perish 
  • Top ten of Nigeria’s trading partners by import value in Q1 2025 
  • NNPC Ltd eyes four major FIDs by 2025, posts N5.89 trillion revenue in April 

Follow us on social media:

Recent News

Air India’s London-bound Boeing jet crashes after takeoff, dozens perish 

Air India’s London-bound Boeing jet crashes after takeoff, dozens perish 

June 12, 2025
Nigerian Imports,Drugs

Top ten of Nigeria’s trading partners by import value in Q1 2025 

June 12, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics