NB 2022Q1 Net Profit Up 77.7% To N13.61bn, Despite 206.7% Rise In FX Loss

The board of Nigerian Breweries Plc, on Monday, announced a strong take off for the 2022 financial year, with net revenue soaring by 30.4% from N105.676bn, to N137.772bn in the first quarter ended March 31, 2022, a growth that was significantly outpaced by net profit, suggesting the likelihood of a growth in dividend payout this year, if the management successfully maintains the growth trajectory to the final quarter.

Despite this growth in sales revenue, cost of sales was contained at N75.319bn, rising by 14.1% from N66.005bn in the corresponding period of 2021, to N75.319bn; with raw materials and consumables accounting for N54.608bn from N46.532bn; resulting in gross profit of N62.452bn from N39.671bn.

Marketing, distribution and admin expenses soared by 55% to N39.588bn from N25.549bn; a breakdown of which showed that marketing and distribution expenses soared from N19.803bn to N32.136bn; while admin expenses increased to N7.451bn from N5.744bn. Other income increased by 133.5% from N368m to N859m; following which operating profit stood at N23.724bn from N14.49bn, a 64.7% growth over the period.

Finance income rose from N25.436m to N73.514m, net loss on foreign exchange transactions jumped from N611.873m to N1.877bn; as finance charges dropped from N2.389bn to N1.158bn. Profit before tax improved by 80.3% from N11.514bn to N20.762bn; while income tax of N7.149bn from N3.855bn; left other comprehensive income, net of tax at N13.614bn, from N7.66bn. This translated earnings per share of N1.69; compared to the previous N0.96.

Meanwhile, rising from its annual general meeting on Friday in Lagos, shareholders of the company unanimously approved a total dividend payout of N12.92bn recommended by the directors for the 2021 financial year, in what they described as a step in the right direction following an impressive financial performance recorded in the period.

The company’s management assured of its commitment to continue to deliver maximum returns for investments, even as Boniface Okezie, a shareholder commended the board and management for demonstrating an immense capacity to manage its resources prudently, which yielded exceptional performance for the company as seen in the revenue and the profit recorded for the year.

He expressed satisfaction with the consistent dividend payment, a gesture he said has endeared it to the heart of many investors, besides showing “great leadership and commitment to delivering values to the shareholders.

“…we are happy that despite operating challenges, including the COVID-19 pandemic and rising inflation, the leadership team has continued to manage the company and its operations efficiently. It gladdens our heart that the company has continued to reward its shareholders at a time like this when many companies cannot pay dividends”, he said.

Also, another shareholder, Mathew Akinlade, appreciated the positive 2021 result, despite the daunting economic challenges and complex operating environment.

Addressing the shareholders, the company’s Managing Director, Hans Essaadi, who thanked the shareholders for their support, assured them of the NB Plc’s sustained commitment to maintaining the positive growth trajectory that will ensure a regular improved dividend payment.

Essaadi noted that the company would continue to invest in all aspects of its operations to grow the business and make it more sustainable.

The Chairman of the company’s Board of Directors, Chief Kola Jamodu, disclosed that each shareholder would receive a final dividend of N1.20k each at an ordinary share of 50k, having received an interim dividend of 40k in December 2021.

Jamodu explained that despite increased competition, the company still maintains its market leadership while also ensuring good returns on investments from investors in the financial year.

Also speaking at the AGM, the Company Secretary/Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku, said that the 2021 financial year saw significant improvement in performance, as reflected in the growth of other income which rose from N0.83billion in 2020 to N4.63 billion in 2021.

Agbebaku affirmed that the company’s management remains committed to consistently delivering superior value to shareholders and taking decisions in their best interest. He expressed optimism that the company would continue to witness growth.

A breakdown of the company’s audited results shows that its Profit after Tax (PAT) recorded for the 2021 financial year stood at 12.93billion, representing significant growth from the previous year’s figures.

According to the 2021 financial year result, marketing, distribution, and administrative expenses rose from N89.66bn in the 2020 financial year to N123.14bn in the 2021 financial year, representing a 37.3% increase.

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