Nigerian Breweries Plc is expected to pay its shareholders a total dividend of N4.80, the company’s 2015 audited results has showed.
If approved by shareholders at the upcoming Annual General Meeting, it would be the highest dividend ever paid by the company in its 70-year history.
Currently, Nigerian Breweries is the second most capitalized company on the Nigerian Stock Exchange (NSE). The company paid out a total dividend of N37 billion (N4.75 kobo per ordinary share of 50 kobo each) for the financial year ended December 31, 2014. The Company had in October 2015, paid an interim dividend of N9.5 billion that is, N1.20 (one naira twenty kobo). Thus, the final dividend will be N28.5 billion that is, N3.60 per share.
According to the company, the proposed final dividend will be subject to deduction of withholding tax at the appropriate rate and will be payable on the 12th of May, 2016, to all shareholders whose names appear on the Company’s Register of Members at the close of business on March 2, 2016.
A look at the audited results show that Results from Operating Activities closed at N62 billion in 2015 while the Profit before Tax stood at N54 billion in the same period. Profit after tax was N38 billion
Speaking to financial journalists at the pre-Annual General Meeting, AGM recently, the Managing Director of the Company, Nicolaas Vervelde explained that the Company was able to achieve strong results and deliver good returns on investment to shareholders due to its twin agenda of Cost Leadership and Market Leadership supported by Innovation.
The Cost Leadership Agenda, he remarked, was anchored on “Every Naira Counts” programme which was to ensure that the business is run in the most efficient way. The programme, according to him, contributed significantly to the 2015 results in the face of a difficult operating environment.
Verlvede added that in 2016, barring any unforeseen circumstance, the company remains confident that with its strong portfolio and its Cost Leadership agenda, it should be able to take advantage of any upswing in the market.
He noted that while 2016 might be a challenging year for the country, Nigerian Breweries is committed to “Winning with Nigeria. “Thus, we will sustain the investment in our operations, systems, brands and of course, people. Coat Leadership and Market Leadership supported by innovation remain our key strategy,” he said.
According to the 2015 corporate rating report by Augsto and co; Nigerian Breweries possesses very strong financial condition and very strong capacity to meet local currency obligations as and when they fall due. The rating, Augosto maintained, is underlined by the company’s dominant position in the Industry; highly experienced and stable Board of Directors; and competent management team. The rating is also supported by NB’s strong financial condition which is validated by good profitability, low leverage, good cash flow and adequate working capital.