Nigerian Breweries proposes 40kobo interim dividend from 9 months profit of N 8.2bn

Nigerian Breweries plans to pay an interim dividend of 40 kobo per ordinary share of 50 kobo each to its shareholders, subject to the deduction of the appropriate withholding tax (WHT).

The company’s unaudited condensed interim financial statements for the nine months ended September 30, 2021 show that its net revenue grew to N309.281billion from N234.038billion in same period of 2020, representing an increase by 32.15percent.

As at Thursday October 28, Nigerian Breweries Plc traded at N54.25 per share, which implies negative return year-to-date (YtD) at -3.1percent.

On December 3, 2021, the interim dividends will be paid electronically to Nigerian Breweries shareholders whose names appear in the Register of members as at close of business on November 19 and who have completed the e-dividend registration mandating the Registrar to pay their dividends directly into their bank accounts.

Nigerian Breweries Plc is a subsidiary of Heineken N.V., a company domiciled in the Netherlands. Heineken N.V. has a 56.33percent interest in the equity of Nigerian Breweries Plc.

Its gross profit increase by 22.9 percent to N110.536billion, from a low of N89.947billion in nine months 2020.

As at September 30, 2021, Nigerian Breweries Plc had Revolving Credit Facilities with two (2) Nigerian banks to finance its working capital. The approved limit of the loan with each of the banks ranged from N6 billion to N15 billion (total of N21 billion). This was yet to be utilized as at September 30, 2021, according to the company’s financials at the Nigerian Exchange Limited (NGX).

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Profit before tax increased by 16percent to N12.737billion from N10.977billion in 9M’2020; while after-tax profit rose to N8.216billion in 9M’2021, from a record low of N6.939billion in 9M’2020, representing an increase of 18.4percent.

Basic Earnings Per Share (EPS) of 102kobo in 9M’2021 implies an increase by 17.2 percent as against 87kobo in 9M’2020.

Net finance income and expenses for the nine-month period ended September 30, 2021 amounted to N12 billion as against nine-month period ended September 30, 2020: N11.7 billion, which implies an increase of 2.56percent.

Interest income for the nine-month period ended September 30, 2021 amounted to N94.9 million. In the nine-month period ended September 30, 2020, it was N217 million showing a decrease by 56.27percent.

Interest expenses for the nine-month period ended September 30, 2021 amounted to N12.1 billion compared to N8.8 billion expenses in 9M’2020, which implies an increase by 37.5percent.

Other net finance expenses for the nine-month period ended September 30, 2021 amounted to N5.8 billion (nine-month ended 30th September 2020: N3 billion), up 93.3percent.