Nigerian Breweries Profit Sheds 25%, Proposes N2.58k Dividend
By Modupe Gbadeyanka
The board of Nigerian Breweries has proposed the payment of a final dividend of N20.5 billion at N2.58k per share to its shareholders.
In a statement signed by the company’s Secretary, Uaboi Agbebaku, it was however stressed that this would be put before the shareholders at the Annual General Meeting scheduled for May 3, 2017.
On February 15, 2017, the board had a meeting to consider the audited results of the top brewing firm in Nigeria for the year ended December 31, 2016.
Nigerian Breweries explained that it the proposal is approved, the dividend recommended will be paid (less deduction of withholding tax at the appropriate rate) on May 4, 2017 to all shareholders recorded in the company’s register of members at the close of business on Wednesday, March 8, 2017.
The statement said the Register of Members and the Transfer Books will be closed from Thursday, March 9, 2017 to Wednesday, March 15, 2017 (both dates inclusive) for the Register of Members to be updated.
It would be recalled that Nigerian Breweries had earlier paid an interim dividend of N7.9 billion at N1 per share which was declared in October 2016.
This makes the total dividend recommended for the year as N28.4 billion at N3.58k per ordinary share of 50k each.
Also, the Directors are recommending to shareholders for their approval at the AGM an option for Qualifying Shareholders to receive new ordinary shares in the company instead of the final dividend, on terms and conditions as the Directors may determine based on prevailing market conditions.
Meanwhile, the Nigerian Breweries Plc has announced 25.4 percent decline in profit after tax for financial year ended December 31, 2016.
Business Post reports that the firm’s profit after tax closed 2016 at N28.4 billion compared with N38 billion recorded in prior year financial report.
Analysis of the audited report by Business Post revealed that the decline was as a result of 66 percent increase in finance cost that moved from N8.2 billion to N13.6 billion in 2016 while revenue by 6.7 per cent to N313.7 billion in 2016 as against N293.9 billion recorded in 2015.