By Modupe Gbadeyanka
Managing Director of Nigerian Breweries Plc, Mr Jordi Borrut Bel, has assured shareholders of the company of good returns on their investment.
Mr Borrut Bel gave this assurance at a media briefing held on Wednesday in Lagos.
The company’s chief executive noted that the Nigeria’s foremost brewer was confident of making investors smile as part of its commitment to the management’s ‘Winning with Nigeria’ strategy.
According to him, the 2017 financial statements of Nigerian Breweries showed that the strategy was yielding results.
“When all factors are considered, our results have been positive and creditable over the years. Despite the deterioration in consumer purchasing power, our robust brand portfolio which covers a broad spectrum of consumer needs enabled us to protect revenue and profitability,” he noted.
An analysis of the firm’s audited results showed that its Profit After Tax of N33 billion in 2017 represented a 16 percent increase from the N28.4 billion achieved in 2016, and a 10 percent growth in turnover of N345 billion in 2017 from N314 billion in the preceding period.
For Mr Borrut Bel, the positive earnings in 2017 were as a result of the “continuous focus on cost leadership.”
He disclosed that the cost leadership initiatives which encompass cost optimisation, revenue management and consumer value re-engineering, yielded savings which positively impacted on the company’s financials.
Nigerian Breweries also recommended a total dividend of N33 billion for the 2017 financial year. The recommendation, which amounts to a total dividend of N4.13 per ordinary share of 50 kobo each, is a 100 percent payout, making it the third year in a row that the company is delivering such to its shareholders.
Mr Borrut Bel ascribed the 100 percent payout recommendation as a reflection of the firm’s strong balance sheet and its overall health.
He said the N33 billion dividend payout was a considerable increase over the N28 billion paid last year for the year ended December 31, 2016.
In the course of the year under review, Nigerian Breweries had earlier paid an interim dividend of N7.97 billion in November 2017, which amounted to N1 per share. The final dividend will therefore be N25.03 billion, which comes to N3.13 per share.
