Kayode Tokede
The Chief Executive Officer, Nigerian Breweries (NB) Plc, Hans Essaadi, has said that the company is determined to improve on shareholders return amid the shortage in foreign exchange and global economy challenges that has resulted in steep rise in the price of crude oil and grains, as well as other challenges.
He noted that the company remains poised to maintain its leadership in the brewery market via its cost and value strategies.
Speaking to journalists during its Pre-Annual General Meeting (AGM) briefing in Lagos, Essaadi, noted that despite the challenging operating environment, the company remained dynamic with its processes and was able to remain resilient and grow from strength to strength.
The company had recommended a total dividend of N12.9 billion, which will be N1.60 per share for the 2021 financial year and will seek shareholders’ approval of a share for cash dividend election scheme at its forthcoming AGM.
Essaadi, however, noted that the cost of living is currently high and together with increased price in the cost of fuel, particularly diesel, is slowing the growth of the Fast-Moving Consumer Goods (FMCG) sector.
He also lamented that the FX crisis has been a source of concern but added that the brewery giant is confident in its ability to weather the challenge due to the legacy it has built over 75 years.
He said: “The deteriorating forex situation has led to foreign suppliers running out of patience with their Nigerian partners, mostly manufacturers who are finding it difficult to settle their rising foreign payables. Our outstanding foreign payables rose by 76 per cent in 2021 and due to lack of FX, the task of procuring input materials has been arduous and this hampered the completion of our capacity extension plan.
Also speaking, the company’s Supply Chain Director, Martin Kochl, revealed that while NB recognizes the importance of sustainable local sourcing of its agricultural raw materials and commercialization of local raw materials, the company is making conscious efforts to partner with local and international research institutes to improve the performance and adaptability of registered sorghum varieties
