An analysis of the audited results shows that Results from Operating Activities declined by 15 per cent to close at N52.9 billion in 2016 from N62 billion achieved in 2015. Profit before Tax dropped by 27.3 per cent from N54 billion at the end of the 2015 financial year to N39.6 billion in the same period in 2016 while Profit after tax dipped by 25.4 per cent to N28.4 billion in 2016 from the N38 billion posted in 2015.
In a statement to The Nigerian Stock Exchange, signed by Mr. Uaboi Agbebaku, Company Secretary/Legal Adviser, the Company said the results were impacted by high inflation and scarcity of foreign exchange in the macro-economic environment.
While commenting further on the results, Agbebaku said that the Company was able to end the year with a positive result due to its twin agenda of Cost Leadership and Market Leadership supported by Innovation.
The statement acknowledged that although the operating environment in 2017 is expected to be similar to 2016, the Company is confident that it is well positioned to adapt to the operating environment as required, and stay committed to delivering a good return on investment to shareholders.
The statement further stated that the Board has recommended a total dividend of N28, 386, 181, 179 (Twenty eight billion, three hundred and eighty six million, one hundred and eighty one thousand, one hundred and seventy nine naira only), for approval at the forthcoming Annual General Meeting, which amounts to N3.58 (three Naira fifty kobo) per ordinary share of fifty kobo each for the 2016 financial year.
It may be recalled that Nigerian Breweries had earlier paid an interim dividend of N7.9 billion that is, N1.00 (one Naira only) last year to its shareholders. Thus, the final dividend will be N20. 5 billion that is, N2.58 (two Naira fifty kobo) per share. The proposed final dividend will be subject to deduction of withholding tax at the appropriate rate and will be payable on the 4th of May, 2017, to all shareholders whose names appear on the Company’s Register of Members at the close of business on the 8th of March, 2017. The declared total dividend of N3.58 per share is a 100% earnings pay out.
The Board also recommended for approval by shareholders, an option for qualifying shareholders to receive new ordinary shares in the Company instead of the cash final dividend, on terms and conditions as the Board may determine based on prevailing market conditions.
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