Nigeria’s foremost brewer, Nigerian Breweries Plc, has recommended a total dividend of N7.71 billion for its shareholders for the 2020 financial year.
The recommendation, which amounts to a total dividend of 94kobo per ordinary share of 50kobo each, represents a 100 percent payout.
Speaking at the Pre- AGM media briefing held in Lagos on Wednesday, April 7, the Managing Director of the company, Jordi Borrut Bel described the 100 per cent dividend payout recommendation as a demonstration of its strong performance for the financial year-end 2020, where it emerged as the only brewer to record a profit in a difficult year.
An analysis of the company’s results also shows that apart from delivering a profit of N7.52 billion, it also recorded a net revenue of N337.01 billion for the 2020 financial year as against N323.00 billion recorded in 2019.
“Business performance was quite impressive especially in the face of the COVID-19 pandemic and economic recession,” Borrut Bel stated.
“Though there was a slight reduction in profitability compared to the previous year, the business witnessed an improved growth in revenue. The significance of this is that business became more stable and healthier,”
He further explained that the improved performance for the year could largely be attributed to the massive decline in both Administrative, Marketing and Distribution expenses for the financial year relative to the previous year.
According to him, while marketing and distribution expenses experienced a dip from N77.70billion in 2019 to 70.7billion in this financial year, administrative expenses experienced a 1.79 per cent decline from N19.30billion to N18.96billion, which was largely informed by the elimination of bad costs.
Borrut Bel stated that despite other operating challenges coupled with the COVID-19 pandemic that affected businesses generally, the company maintained a strong and healthy balance sheet.
He assured stakeholders that the company remains committed to ensuring that the health, safety and welfare of its employees, customers and partners are protected.