Nigerian Breweries declares N8b interim dividend

The board of Directors of Nigerian Breweries Plc has announced an interim dividend of N7.929 billion based on the third quarter report of the company.

With this, shareholders will receive interim dividend per share of N1 per ordinary share of 50 kobo.

In a statement signed by company secretary and legal adviser, Mr. Uaboi Agbebaku, Nigerian Breweries recorded four percent year-on-year rise in revenue for the period ended September 30th 2016 but operating profit dropped by 11 per cent. The unaudited results indicated that the company’s revenue rose from N214. 918 billion recorded at the end of September 2015 to N222.716 billion in the same period in 2016.

The statement attributes the 11 per cent decline in operating profit of the company which stood at N37.962 billion at the end of September 2016 from the N42.766 billion in the same period in 2015 to higher input costs as a result of rising inflation combined with the devaluation of the Naira.

Read also: First Bank grosses N417bn in 9 months

According to the company, the negative impact of scarcity of foreign exchange combined with the Naira devaluation more than offset the lower interest costs resulting in a 94 per cent increase in net finance costs. Profit after tax declined by 23 per cent from N26.175 billion in third quarter 2015 to N20.1 billion in third quarter 2016.

The company noted that the macroeconomic environment deteriorated further in the third quarter compared to the first half with continuous down-trading by consumers.

Nigerian Breweries assured that although, the operating environment is expected to remain challenging for the rest of the year; it will continue to focus on its twin agenda of cost and market leadership supported by innovation.

The management of the company expressed confidence that the company is well positioned to take advantage of any upswing in the market.

 

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