Nigerian Breweries declares N33bn dividend, posts N33bn PAT

THE Board of Directors of Nigerian Breweries Plc, has announced its results for the 2017 operating year with a dividend recommendation of N33 billion to its shareholders.

The recommendation, which amounts to a total dividend of N4.13 kobo per share for the 2017 operating year was part of the company’s filing to The Nigerian Stock Exchange (NSE) was inclusive of interim dividend of eight billion naira, representing one naira per share earlier paid by the company in November 2017.

In a statement signed by the Company’s Secretary/Legal Adviser, Mr Uaboi Agbebaku, the Board also announced a N33 billion profit after tax (PAT) for 2017 on a revenue of N344 billion. This represents a 16 per cent increase in Profit After Tax from N28.4 billion in 2016 and a 10 per cent growth in turnover from N313 billion in the corresponding period.

According to Mr Agbebaku, “whilst the foreign exchange situation improved in the course of the year, double digit inflation continued to impact both businesses and consumers. Nevertheless, the company was able to end the year with improved results through continuous focus and execution of the twin agenda of cost leadership and market leadership supported by innovation”.

The Board maintained that whilst there are some early signs of improvement in the macro-economic condition, this is yet to be reflected in consumer confidence. The Board remains confident that the Company has a clear strategy to deliver good return on investment to Shareholders as part of its commitment to Winning with Nigeria.

Further analysis of the company report indicated that on a full year basis, sales grew by 10 per cent to N344.6 billion. However, PBT and PAT expanded by 18 per cent and 16 per cent respectively to N46.7 billion and N33.0 billion.

Analysts, however, believed that higher prices of soft agricultural commodities required by brewers was also likely responsible for the y/y contraction in gross margin, as barley prices increased by around 24 per cent y/y in the final quarter of 2017.