THE Board of Directors of Nigerian Breweries Plc has declared an interim dividend of N7.929 billion, that is N1.00 (One Naira) per ordinary share of 50 kobo in the share capital of the company for the nine month period ended 30th September 2016.
This is despite the marginal decline in the company’s profit for the period occasioned by the current challenging environment. This was revealed in a corporate filing of the company’s results at the Nigerian Stock Exchange, NSE.
The statement signed by its Company Secretary/Legal Adviser, Mr. Uaboi Agbebaku, shows a four percent year-on-year rise in the revenue from N214. 92 billion in 2015, to N222.72 billion. However, its operating profit declined by 11 per cent from the N42.766 billion to N37.962 billion, a situation the company attributed to higher input costs as a result of rising inflation combined with the devaluation of the Naira.
The negative impact of scarcity of foreign exchange combined with the Naira devaluation more than offset the lower interest costs resulting in a 94 per cent increase in net finance costs. The company’s Profit After Tax, PAT, declined by 23 per cent from N26.175 billion in the period under review in 2015 to N20. 100 billion in the same period in 2016.
The statement added that the macro-economic environment deteriorated further in the third quarter compared to the first half with continuous down-trading by consumers.
Although, the operating environment is expected to remain challenging for the rest of the year, the company pledged to “continue to focus on our twin agenda of cost and market leadership supported by innovation”.