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Nigerian Breweries posts 17% slump in Full Year profit, proposes N1.51 final dividend

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The 2019 Annual Report and Accounts of Nigeria’s largest brewer, Nigerian Breweries Plc, has revealed a 17% or N3.296 billion drop in its after-tax profit for Full Year 2019.

According to the document posted on the website of the Nigerian Stock Exchange (NSE) yesterday, results across key performance parameters generally fell lower than the figures posted by the figure in the corresponding period of 2018.

Net Revenue came down marginally by 0.4% from N324.389 billion at FY2018 to N323.002 billion.

Profit Before Taxation (PBT) responded to the negative drift, falling in this case by 20.5% from N29.360 billion at 31st December 2018 to N23.327 billion in the relative period of last year.

Profit After Taxation (PAT) depreciated to N16.105 billion at FY2019 from N16.105 billion at FY2018, signifying a 17% fall.

Earnings Per Share (EPS) fell by 17.3% from N2.43 at FY2018 to N2.01 in the relative period of 2019.

Nigerian Breweries’s operational efficiency suffered a setback in the review period, occasioned by the significant rise of its Marketing and Distribution Expenses from N70.052 billion at FY2018 to N77.695 billion at FY2019, translating to a 10.9% increase.

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The brewer’s Finance costs also escalated, moving by 53.1% from N7.959 billion at FY2018 to N12.188 billion at FY2019.

In its review of operations in 2019, the company said its results “were adversely impacted by the increased excise duty rates which came into effect during the year coupled with a challenging operating environment.”

In view of its 2019 performance, Nigerian Breweries is proposing a final dividend of N1.51 per share totalling N12,073,322,097 subject to shareholders’ approval at its forthcoming Annual General Meeting (AGM), scheduled to hold on 22nd April 2020.

Shareholders whose names appear in the register of members at the Close of Business on 4th March 2020 are eligible for the dividend payout.

The register of members will be closed from 5th March to 11th March 2020 preparatory to payment of dividends on 23rd March 2020.

The final dividend, if endorsed, will bring the total dividend payout by Nigerian Breweries for FY2019 to N16,073,773,123 (N2.01 per share), having earlier paid an interim dividend of N3,998,451,026 (N0.50 per share).

With outstanding shares of around 7.997 billion valued at over N411.840 billion, Nigerian Breweries dividend yield currently stands at 4.95%.

Incorporated in 1946, Nigerian Breweries today operates 11 breweries, two malting plants and 26 sales depots within the country. Its asset base as of 30 December, 2019 was about N382.504 billion and total equity in excess of N167.565 billion.

Heineken N.V holds the majority stake of 55.95 per cent in the company while Nigerian and foreign individuals and association hold roughly 44.05 per cent.

Nigerian Breweries currently trades at N51.5 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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