Nigerian Breweries’ shareholders to earn N13.8bn

The shareholders of Nigerian Breweries will earn N13.8 billion from dividends for the 2022 period due to their equity investments in the brewery company.

In its Audited Financial Statements for 2022, obtained by Ripples Nigeria on Monday, Nigerian Breweries disclosed to shareholders that the N13.8 billion is the total dividend for last year, representing N100.43 kobo per share as the total dividend to shareholders.

The payment will be made to “shareholders whose names appear on the company’s Register of Members at the close of business on Thursday, 16th March, 2023. The Register will be closed from Friday, 17th March 2023 to Thursday, 23rd March, 2023 (both dates inclusive) for the purpose of updating the Register,” the corporate document reads.

Nigerian Breweries previously offered an interim dividend of N3.28 billion, representing N0.40 kobo per share to shareholders in October 2022.

Read also:NGX: Investors in Nigerian Breweries, Caverton, others lose N24.5bn to low demand for shares

In its financial statements, the firm said directors proposed a final dividend of N10.58 billion, as shareholders will be paid N100.03 per share.

The company has proposed to make the N13.8 billion dividend payments, which will become payable on April 26, 2023, at a period Naira devaluation and foreign exchange scarcity are negatively impacting Nigerian Breweries’ earnings.

In the corporate document, Nigerian Breweries revealed, “Cost of Sales, Marketing, and Distribution expenses were under pressure due mainly to inflation, devaluation of the naira and high energy prices. While the Operating Margin was flat, our Profit after Tax margin reduced driven mainly by the increase in foreign exchange losses due to the naira devaluation and foreign currency scarcity. Despite the net margin decrease, the Company grew its Profit after Tax by 8%.”

The revenue generated between January to December 2022 was N550.63 billion. This is 26 per cent higher than the N437.28 billion grossed the year before.

However, the turnover growth was affected by the 22 per cent growth in the cost of sales, as Nigerian Breweries spent N337.31 billion to produce its drinks last year. But in 2021, the firm’s cost of production was N276.87 billion.

As a result, Nigerian Breweries’ profit after tax grew by just 4 per cent to N13.18 billion in 2022, against the N12.67 billion the brewer posted as net profit in 2021.

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