At the annual general meeting of Heinekens BV subsidiary- Nigerian Breweries Plc, next week in Lagos, directors plan to recommend a total dividend of N19.401bn for the 2018 financial year, amounting to a total dividend of N2.43 per share of 50 kobo each.
The company sees the decision to distribute 100% of the year’s Earnings Per Share as a demonstration of its strong balance sheet and robust cash flow.
Speaking at the pre-AGM media briefing in Lagos on Tuesday, May 7, 2019, Managing Director of the NB Plc, Jordi Borrut Bel, recalled that the company earlier paid an interim dividend of N4.8bn in October 2018, amounting to 60 kobo per share.
The final dividend will, therefore, be N14.6bn, translating to N1.83 per share.
An analysis of the financials shows that NB Plc recorded net revenue of N324.38bn in 2018, compared to N344.53bn in 2017, with Marketing and Distribution expenses increasing by 4.8% relative to that of 2017, while administrative expenses fell by 4.4% from N21.75bn to N20.78bn, which was largely informed by the elimination of bad costs.
Borrut Bel explained that the company’s cost did not increase at the double-digit growth rate recorded by the country in the year under review, partly to the increased flexibility of its nine brewery and malting plants across the country to produce more brands.
He noted that though the excise duty tariff imposed by Federal Government increased by 43%, which could not be passed to consumers in view of the prevailing weak purchasing power, taking a serious toll on the business.
Further analysis of the results showed that profit after tax, rising from N14.79bn to N19.43bn between the third quarter and the fourth quarter of the 2018 financial year.
Borrut Bel said the impact of the country’s double-digit inflation and other operating challenges which affected the company’s performance was reduced by cost-saving measures deployed through cost leadership initiatives. He assured that NB Plc is positioned to remain competitive with a view to deliver good returns on investment to shareholders as part of its commitment to “winning with Nigeria.”