The board of directors of Nigerian Breweries Plc has recommended that 100 per cent of the N19.401 billion profit after tax (PAT) recorded for the year ended December 31, 2018 be paid out as dividend to shareholders. The recommendation is contained in the company’s audited financial reports made available to the Nigerian Stock Exchange (NSE) yesterday.
According to the results, NB Plc’s PAT fell by 41.2 per cent from N33 billion in 2017 to N19.4 billion in 2018. However, in its characteristics of paying all earnings as dividend, the board has recommended that a total dividend of N2.43 per share for the year be paid.
The company recorded a revenue of N324.4 billion, down marginally from N344.5 billion in 2017, while exercise duty rose from N21.271 billion to N25.837 billion.
Cost of sale reduced from N201 billion to N197 billion, bringing gross profit to N126.9 billion compared with N143.5 billion the previous year.
Marketing and distribution expenses rose from N66.863 billion to N70.052 billion, while administrative expenses reduced from N21.748 billion to N20.785 billion. Similarly, Net finance cost fell to N7.529 billion compared with N10.491 billion in 2017.
The company ended the year with profit before tax of N29.4 billion, down 36.9 per cent from N46.6 billion in 2017 and PAT of N19.4 billion as against N33 billion the previous year.
Based on the performance, the directors have recommended to the Company’s Shareholders at the annual general meeting(AGM) coming up on the 17th of May, 2019, the declaration of a total dividend of N19.4 billion, that is, N2.43 per share representing a hundred per cent dividend pay-out ratio.
The company had earlier, in 2018, paid an interim dividend of N4.8 billion which translated to N0.60k per share before the final dividend of N1.83 that will be N14.6 billion.
In the statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, NB Plc said the 2018 results were adversely impacted by the increased excise duty rates that came into effect during the year and a challenging operating environment.
NB Plc last year got commendation from the NSE for its commitment to corporate governance standards. The commendation came when the managing director of the company, Mr. Jordi Borrut Bel visited the exchange shortly after his appointment.
Borrut Bel had restated the company’s the commitment to sustaining its relationship with the NSE, adding that over the years, the company had excelled in compliance and corporate governance matters.