Nigerian Breweries Optimistic Despite Fall in Q1 Profit

The Board of Directors of Nigerian Breweries (NB) Plc has expressed optimism that the company has a clear strategy to deliver a good return on investment for its shareholders.

The Company Secretary/ Legal Adviser, Mr. Uaboi Agbebaku, NB Plc gave the assurance in a statement that accompanied the company’s audited results for the first quarter (Q1) ended March 31, 2018.

Although the company recorded a decline in revenue and profit after tax (PAT), it said: “The Board remains confident that the company has a clear strategy to deliver a good return on investment for its shareholders.”

NB Plc’s revenue dipped by nine from N91.3 billion in 2017 to N83.0 billion in 2018. Profit before tax (PBT) also reduced by 12.6 per cent from N17.4 billion in 2017 to N15.2 billion while PAT fell by 11.8 per cent from N11.4 billion to N10.2 billion in 2018.

“While there are some signs of improvement in the macroeconomic conditions, these are yet to be reflected in consumer spending,” it explained.

NB Plc had ended 2017 financial year with a revenue of N334.6 billion, up 6.6 per cent from N313.7 billion posted in 2016, while gross profit fell marginally to N133.5 billion, from N135.5 billion in 2016.

Other income jumped by 266 per cent to N2.2 billion from N600 million, while net finance cost fell by 21 per cent from N13.2 billion to N10.5 billion.

Consequently, PBT rose from N39.7 billion to N46.6 billion, just as PAT improved to N33 billion, compared to N28.4 billion in 2016.

The directors have recommended a total dividend of N33 billion, that translate to N4.13 per share. The recommended dividend was inclusive of interim dividend of N8 billion, which is N1.00 per share earlier paid by the company in November 2017.

The Chairman of NB Plc, Chief Kola Jamodu, recently explained that the 100 per cent dividend payout was a reflection of its strong balance sheet and overall health of the company. He maintained that the operating environment in 2017 was very challenging especially from an input cost, foreign exchange and purchasing power perspectives.

A shareholder of the company, Theophilus Adegboye had commended the company for improving the fortunes of shareholders by proposing a 100 per cent dividend payout at a time many quoted companies were unable to pay dividend to their shareholders.