…amounts represents 100% earnings-payout ratio
By Moses Nosike
The Board of Directors of Nigerian Breweries Plc has announced the company’s results for the 2019 financial year with a dividend recommendation of N16.07 billion for approval by its shareholders at the forthcoming Annual General Meeting scheduled for April 22nd 2020.
The recommendation is coming on the heels of the N16.1 billion Profit after Tax recorded by the company in 2019, signifying a 100% earnings-payout ratio.
The N16.07 billion amounts to a total dividend of N 2.01 (Two Naira and One Kobo) per share for the 2019 operating year and was part of the company’s filing to the Nigerian Stock Exchange on Thursday, 13th of February 2020. The recommended dividend is inclusive of interim dividend of N 3.9 billion, that is 50 Kobo earlier paid by the company. Subject to approval and the deduction of withholding tax at the appropriate rate, the final dividend of N12.07 billion that is, N1.51 per share will be payable on the 23rd of April, 2020 to all shareholders whose names appear on the Company’s Register of Members at the close of business on the 4th of March, 2020.
In the statement signed by the Company Secretary/Legal Director, Nigerian Breweries Plc, Mr. Uaboi Agbebaku, the Board also announced a N16.1 billion Profit after Tax (PAT) for 2019 on a revenue of N323 billion. The amount represents a 0.4% decrease in revenue from the ¦ 324 billion earned in 2018.
The statement also shows that profit before tax dropped to N 23.3 billion in 2019 from N 29.4 billion in the previous year, indicating a 20.5% fall.
According to Mr Agbebaku, “In 2019, the results of the Company was adversely impacted by the second instalment of the increased excise duty rates which came into effect during the year coupled with a challenging operating environment”.