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Nigerian Breweries Declares N3.29BN Interim Dividend as PAT Grows 79.6%



Nigerian Breweries Declares N3.29BN Interim Dividend as PAT Grows 79.6%

By Dele Castro

The Board of Nigerian Breweries has announced approval of N3.288 billion as interim dividend for its shareholders, according to a disclosure filed at the Nigerian Exchange Limited (NGX).

The filing, signed by Uaboi Agbebaku, the company secretary, stated that the amount represents 40kobo per ordinary share of 50 kobo in the share capital of the Company.

It added that the interim dividend will become payable on Thursday, December 1, 2022, to all shareholders registered in the books of the Company at the close of business on Wednesday, November 23, 2022.

“The interim dividend shall be paid subject to the deduction of withholding tax at the appropriate rates. For the purpose of the interim dividend, the Register of Members and Transfer Books will be closed from Thursday, November 24, 2022 to Wednesday, November 30, 2022, for the preparation of an updated Register of Member,” the statement read.

This is coming on the heels of the latest unaudited financial statement for the third quarter, 2022 recently released by the firm, which disclosed that it increased its revenue to N393.34 billion for the third quarter ended 30th September 2022.

According to the company, the figure represented an increase of 27.2 per cent from N309.22 billion recorded in the corresponding period in 2021.

It said the revenue growth in the quarter driven by pricing was however offset by higher input cost arising from increased rate of inflation and higher energy costs.

Nonetheless, the operations of the NB Group for the nine month-period proved lucrative as it posted N14.76 billion profit after tax relative to N8.69 billion the comparative period of 2021, representing 79.6%.

It stated, “Analysis of the results revealed that cost of sales rose significantly by 20.2 per cent from N198.75 billion in 2021 to N238.92 billion during the period under review in 2022.

“Marketing, distribution, and administration expenses also grew by 40.1 per cent from N86.33 billion in 2021 to N120.95 billion in 2022.

“Apart from volume and cost challenges which affected business performance negatively in Q3, 2022, there was increased pressure on consumer disposable income as well as heavy rains and flooding.

“Nevertheless, the company performed relatively well in the period led by a strong premium portfolio of Heineken, Tiger and Desperados.

“Despite the volume and cost challenges in the third quarter, the strong performance recorded in the first half of the year ensured that operating profit grew by 44 per cent while profit after tax went up 80 per cent.”

The statement added, “The board has therefore announced an interim dividend of N3.29bn payable to shareholders at 40 kobo each per ordinary share of 50k.

“While being cautious about the development of input costs and consumer demand in the remaining period of 2022, the statement assured stakeholders that the company is well positioned to take advantage of any upswing in the market and maintain its leadership position.”

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