April 7, 2021
By Paschal IJEH InvestAdvocate
Lagos (INVESTADDVOCATE)-Top tier beer producer, Nigerian Breweries Plc on Wednesday recommended a total dividend of 94 kobo per share to investors’ in the review period ended December 31, 2020 amounting to N7.71 billion.
Jordi Borrut Bel, managing director (MD) of the company made this disclosure at the 75th Pre-Annual General Meeting (Pre-AGM), according to him, the 94 kobo per ordinary share dividend of 50kobo each, represents a 100 percent payout in dividend to shareholders. “The 100 percent dividend payout recommended is a demonstration of Nigerian Breweries strong performance for the financial year-end 2020, where it emerged as the only brewer to record a profit in a difficult year,” Borrut Bel added.
The brewing giant had for the nine-month period ended September 30, 2020 paid an interim dividend of 25 per share to shareholders amounting to N1.9 billion added to 69 kobo total dividend translating to 94 kobo total dividend payout to investors for the 2020 review period compared to N2.01 per share received the previous year.
A statement made available by Integrated Indigo Limited, media consultants to Nigerian Breweries says the company’s results also shows that apart from delivering a profit of N7.52 billion, it also recorded a net revenue of N337.01 billion for the 2020 financial year as against N323.00 billion recorded in 2019.
“Business performance was quite impressive especially in the face of the COVID-19 pandemic and economic recession,” Borrut Bel stated.
“Though there was a slight reduction in profitability compared to the previous year, the business witnessed an improved growth in revenue. The significance of this is that business became more stable and healthier,”
He further explained that the improved performance for the year could largely be attributed to the massive decline in both Administrative, Marketing and Distribution expenses for the financial year relative to the previous year.
According to him, while marketing and distribution expenses experienced a dip from N77.70billion in 2019 to 70.7billion in this financial year, administrative expenses experienced a 1.79 per cent decline from N19.30billion to N18.96billion, which was largely informed by the elimination of bad costs.
Borrut Bel stated that despite other operating challenges coupled with the COVID-19 pandemic that affected businesses generally, the company maintained a strong and healthy balance sheet.
He assured stakeholders that the company remains committed to ensuring that the health, safety and welfare of its employees, customers and partners are protected,” the statement added.
A review of the beer makers report by InvestAdvocate shows that igerian Breweries Plc 2020 pretax profit for the full year ended December 31 2020 declined -50.43 percent to N11.6 billion from N23.4billion recorded a year earlier.
Post-tax profit for the review period also dipped 54.25 percent to N7.4 billion from N16.1 billion in the same period of 2019
Gross profit also depreciated 9.6 percent to N118.7 billion from N131.2 billion posted the corresponding period of 2019.
However, revenue of the brewer grew slightly from N323.0 billion in 2019 end to N337.0 billion in the review period of 2020; indicating a growth of 4.35 percent, the brewing giant said in a filing with the Nigerian Stock Exchange (NSE).