The Board of Directors of the largest brewer in Nigeria, Nigerian Breweries, NB Plc has proposed an interim dividend of N7.929 billion.
This amount translates to N1.00 per share for the nine months ended September 30, 2016. This interim dividend is being recommended despite a decline in the company’s profit for the period occasioned by the current economic state.
The company said in a statement signed by NB Plc’s Company Secretary/Legal Adviser, Mr. Uaboi Agbebaku, that revenue rose from N214. 918 billion recorded at the end of September 2015 to N222.716 billion in the same period in 2016.
However, operating profit fell by 11 per cent from N42.766 billion in 2015 to N37.962 billion in 2015. The company’s profit after tax (PAT) declined by 23 per cent from N26.175 billion in the period under review in 2015 to N20.100 billion in 2016.
According to the company, the decline in operating profit was due to higher input costs as a result of rising inflation combined with the devaluation of the naira. The negative impact of scarcity of foreign exchange combined with the naira devaluation more than offset the lower interest costs resulting in a 94 per cent increase in net finance costs.
“The company’s PAT declined by 23 per cent from N26.175 billion in the period under review in 2015 to N20. 100 billion in the same period in 2016. The macro-economic environment deteriorated further in the third quarter compared to the first half with continuous down-trading by consumers,” the company said.
NB Plc said that although, the operating environment is expected to remain challenging for the rest of the year, it would continue to focus on our twin agenda of Cost and Market Leadership supported by innovation. It also expressed confidence that it is well positioned to take advantage of any upswing in the market.