Despite the fact that the operating environment for many businesses across the country has been unpleasant, Nigerian Breweries Plc was able to record some milestones in the intervening period.
The brewery giant grew profit by over 72 per cent to N12.7 billion and hopes to pay shareholders a total dividend of N12.92 billion for the financial year ended December 31, 2021. This represents N1.60 per ordinary share of 50 kobo each. The total dividend consisted of an interim dividend N3.230 billion, that is 40 kobo per share which had earlier been paid and final dividend of N9.690 billion representing N1.20 per share.
Addressing newsmen in Ikeja, during its 76th pre-AGM media briefing, the Chief Executive Officer, NB Plc, Hans Essaadi, said 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 deteriorating forex situation has led to foreign Suppliers running out of patience with their Nigerian partners, mostly manufactures 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,” regretted the CEO.
“With the re-introduction of the excise duty on non-alcoholic beverages, and increase in excise duty rate for alcoholic beverages, these additional costs will lead to an increase in the price of the finished product.”
According to him, the company had also remained dynamic and resilient with its processes, which has enabled it to weather the storm in the past 75 years.
“Volatility in the brewery sector is expected but we feel confident in our ability to grow and we have our pricing strategy as well as the cost and value agenda to maintain leadership in the market as well as sustain shareholders’ value and meet consumer demands in 2022″, Essaadi said.
This is just the CEO assured that the company would make deliberate efforts to boost jobs creation, noting that despite the uncertainties of the COVID-19 pandemic NB Plc never cut down jobs.
Mrs. Sade Morgan, the company’s Corporate Affairs Director, said the brewery giant’s sustainability project tagged, ‘Evergreen 2025 was aimed at growing the business, its people and the future.
Meanwhile, the Heineken-backed Nigerian Breweries Plc hinted of plans to use its entire post-tax profit for 2021 as compensation package to shareholders, Company Secretary, Uaboi Agbebaku stated at the press conference.
The board resolution is coming over a year after Nigerian Breweries annual dividend hit the lowest level in 15 years as elevated inflation pressured its earnings for the financial year 2020.
Now in its 76th year, Nigeria’s biggest brewer is positioning to ramp up its focus on its premium brands including Heineken and Tiger beers, a strategy that shot sales by as much as 29.7 per cent to N437.2 billion last year.
“The strength of this business is its portfolio,” said Emmanuel Oriakhi, the marketing director at the event that was held at Lagos’ Radisson Blu Hotel.
The brewery has also created a share for cash dividend scheme that would enable investors to reinvest in the company and buy new shares with their dividends.
Under the share-for-cash arrangement, both local and foreign investors would have the opportunity to either receive cash or buy new shares with their dividends, while those that opt for the new shares are expected to complete a share-for-cash dividend election scheme form before April 12, 2022.
Also speaking, the company’s Supply Chain Director, Martin Kochl, said while the company recognises the importance of sustainable local sourcing of its agricultural raw materials and commercialization of local raw materials, it is making conscious efforts to partner with local and international research institutes to improve the performance and adaptability of registered sorghum varieties.
Credit: thenationonlineng.net
