The Board of Directors of Nigerian Breweries Plc has released its audited financial statement for the year ended 31 December 2020, declaring a profit after tax of N7.52 billion and a turnover of ₦337.01billion in revenue.
This result represents a percentage increase of 4.3% compared to ₦323 billion recorded during the corresponding period in 2019.
- Revenue grew by 4.4% to N337bn from N323bn in the previous quarter.
- Profit before tax declined by 50% to N11.6bn.
- Profit after tax declined by 54% to N7.4bn.
- Net Assets declined by -3.9% from N161bn to N168bn.
In the statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, the Board of Directors commended the Company’s Management for its efforts in mitigating the impact of the COVID-19 pandemic on the business, as well as the prudent management of its resources as reflected in a 7% reduction in expenses incurred on marketing, distribution, and administration.
The statement further revealed that the Board of Directors will be recommending to the Company’s Shareholders at the forthcoming Annual General Meeting the declaration of a total dividend of ₦7.52billion, at 50k per share representing a hundred percent dividend payout ratio.
Recall that the Company had earlier in 2020, paid an interim dividend of ₦1.999billion which translated to ₦0.25k per share. The final proposed dividend of ₦5.52billion at ₦0.69k per share will be payable to shareholders upon approval on 23 April 2021.
The statement further noted that only qualifying shareholders whose names appear on the Company’s Register of Members at the close of business on 10 March 2021 will be paid the final dividend.
Directors would also be recommending to Shareholders for their approval at the forthcoming AGM, a right of election for Qualifying Shareholders to receive new ordinary shares in the Company as against the final dividend in cash.
Despite the negative impact on its operations, it is noteworthy that Nigerian Breweries made various donations in cash and kind valued at about ₦531 million out of a phased commitment of ₦600 million to the Federal and 7 State Governments’ COVID-19 Task Forces Relief Funds.
According to Mr Agbebaku, the Board of Directors expressed confidence that Nigerian Breweries is well-positioned to continue to deliver a return on investment to Shareholders. The statement adds that the company remains committed to not only keeping its balance sheet strong but ensuring that the health, safety and welfare of its employees, customers and partners are protected.