Champion Breweries : BREW. PLC.- QUARTER 5 - FINANCIAL STATEMENT FOR 2022

Annual Report and Financial Statements For the year ended 31 December 2022

	CHAMPION BREWERIES PLC
	Annual Report and Financial Statements
	For the year ended 31 December 2022
Table of Contents
Corporate Information	i
Directors' Report	ii
Statement of Directors' Responsibilities	vi
Certification of the audited financial statements	vii
Audit Committee's Report	viii
Independent Auditor's report	1
Statement of profit or loss and other comprehensive income	5
Statement of financial position	6
Statement of changes in equity	7
Statement of cash flows	8
Notes to the financial statements	9
Value Added Statement	58
Five Year Financial Summary	59

CHAMPION BREWERIES PLC

Annual Report and Financial Statements

For the year ended 31 December 2022

Corporate Information
Date of Incorporation:	31 July 1974
Registration Number:	RC 13388
TIN:	00463544-0001
Company's Website:	www.championbreweries.com
Registered Office:	Industrial layout, Aka Offot, PMB 1106
	Uyo
	Akwa Ibom State
	Nigeria
Directors:	Dr. Elijah Akpan	-	Chairman
	Mr. Georgios Polymenakos (Greek)	-	Managing Director
	Mr. Samson Aigbedo
	Mrs. Helen Umanah
	Mr. Thompson Owoka
	Alhaji Shuaibu Ottan
	Mr. Olufunminiyi Alabi
	Mr. Frederik Williem Kurt Linck (Dutch)
	Mr. Kevin James Albert Santry (British)
Company Secretary:	Chief Tosan Atle Aiboni
Independent Auditor:	Deloitte & Touche Nigeria
	Civic Towers
	Plot G1, Ozumba Mbadiwe Avenue
	Victoria Island, Lagos
	www.deloitte.com.ng
Registrars:	African Prudential Registrars Plc
	220B, Ikorodu Road
	Palmgrove, Lagos
	Nigeria
	[e-mail]
Bankers:	Access Bank Plc
	First Bank of Nigeria Ltd
	First City Monument Bank Plc
	Guaranty Trust Bank Plc
	Stanbic IBTC Bank
	United Bank for Africa Plc
	Zenith Bank Plc

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CHAMPION BREWERIES PLC

Annual Report and Financial Statements

For the year ended 31 December 2022

Directors' Report

The Directors are pleased to present the annual report of Champion Breweries Plc ("the Company"), together with the independent auditor's report for the year ended 31 December 2022.

Legal Form and Principal Activity

The Company was incorporated in Nigeria as a limited liability company on 31 July 1974 and was later converted to a public limited liability company on 1 September 1992. The Company's principal activities continue to be brewing and packaging of Champion Lager Beer and Champ Malta as well as the provision of contract brewing services to Nigerian Breweries Plc, a related party within the Heineken group of the Netherlands, the ultimate parent. The immediate parent Company is The Raysun Nigeria Limited, a Company incorporated in Nigeria.

Operating Results

In 2022, the results of the Company were favorably impacted by increased sales volume during the period. A summary of the Company's operating results is shown below:

	2022		Restated 2021
	N'000		N'000
Revenue	12,288,893	9,559,079
Operating profit	2,271,277	1,827,474
Profit before tax	2,248,908	1,842,177
Income tax expense	(662,930)	(768,784)
Profit after income tax	1,585,978	1,073,393
Other comprehensive income/(loss), net of tax	(25,587)	192,416

Dividend

The Directors did not recommend any dividend during the year (2021: Nil).

Board of Directors

The Directors are responsible for oversight of the business, long-term strategy and objectives, and oversight of the Company's risks. The Directors are also responsible for evaluating and directing the implementation of the Company's controls and procedures including, in particular, maintaining a sound system of internal control to safeguard shareholders' investments and the Company's assets.

Directors and their Interests

The names of directors who held office during the year as well as their interest in the issued shares of the Company as recorded in the Register of Members and / or notified by the Directors in compliance with Section

301 of the Companies and Allied Matters Act, 2020 were as follows:

	2022	2021
	Number of Ordinary Shares
Dr. Elijah Akpan (Chairman)**	-	-
Mr. Georgios Polymenakos (Greek) (Managing Director) *	-	-
Mr. Thompson Owoka**	500,000	500,000
Alhaji Shuaibu Ottan**	165,916	165,916
Mrs. Helen Umanah**	8,110	8,110
Mr. Olufunminiyi Alabi**	-	-
Mr. Samson Aigbedo**	-	-
Mr. Kevin James Albert Santry (British)**	-	-
Mr. Frederik Williem Kurt Linck (Dutch)**	-	-
*Executive Director
** Non-executive Director

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CHAMPION BREWERIES PLC

Annual Report and Financial Statements

For the year ended 31 December 2022

Directors' Report (cont'd)

In accordance with Section 303 of the Companies and Allied Matters Act, 2020, none of the Directors notified the Company of any declarable interest in any contract in which the Company was involved during the year under review (2021: Nil).

Analysis of Shareholding

As at prior and current reporting dates, the Company's ordinary shares were held as follows:

		2022					2021
			Ordinary						Ordinary
			shares		Share				shares		Share
			of 50k each		capital				of 50k each		capital
	%		Number '000		N'000	%		Number '000		N'000
The Raysun Nigeria Limited*	86.4	6,761,283	3,380,641	84.7	6,632,918	3,316,459
Akwa Ibom Investment
Corporation	10.1	787,407	329,757	10.1	787,407	393,704
Other shareholders.	3.5		280,806		204,350		5.2		409,171		204,585
	100	7,829,496	3,914,748	100	7,829,496	3,914,748

On 2nd January 2022, The Securities and Exchange Commission (SEC) gave authority to The Raysun Nigeria Limited to proceed with the Mandatory Takeover Offer (MTO), for the 1,196,799,164 minority shares of the Company at N2.60 per share. Based on the MTO The Raysun Nigeria Limited acquired additional 128,365,129 ordinary shares from the minority shareholders.

Property, Plant and Equipment

Information relating to movement in property, plant and equipment during the year is disclosed in Note 11 to the financial statements.

Donations and sponsorship
The Company gave donations and provided sponsorship as follows:
	2022	2021
	N'000		N'000
Community Bursary Award	3,600	-
Donation of schools (Desks, Chairs and Books)	8,372	-
Donation of exercise books	2,922	-
Sponsorship of sports tournament	215	400
Sponsorship of beauty pageant	1,000	1,000
Donation to Manufacturers Association of Nigeria	200		100
	16,309	1,500

In accordance with Section 43(2) of the Companies and Allied Matters Act, 2020 ("CAMA"), the Company did not make any donation or give gifts to any political party, political association or for any political purpose during the year (2021: Nil).

Business Review and Future Development

The Company intends to continue the fulfilment of its objectives as indicated in its Memorandum and Articles of Association.

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