The Board of Directors of Nigerian Breweries (NB) Plc has recommended
an interim dividend of N7.929 billion, which translates to N1.00 per
share for the nine months ended September 30, 2016. This interim
dividend is being recommended despite a decline in the company’s profit
for the period occasioned by the current challenging environment.
The company said in a statement signed by NB Plc’s Company
Secretary/Legal Adviser, Mr. Uaboi Agbebaku, that revenue rose from
N214. 918 billion recorded at the end of September 2015 to N222.716
billion in the same period in 2016.
However, operating profit fell by 11 per cent from N42.766 billion in
2015 to N37.962 billion in 2015. 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 2016.
According to the company, the decline in operating profit was due 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 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 macro-economic environment deteriorated further in the
third quarter compared to the first half with continuous down-trading by
consumers,” the company said.
NB Plc said that although, the operating environment is expected to
remain challenging for the rest of the year, it would “continue to focus
on our twin agenda of Cost and Market Leadership supported by
innovation.”
The expressed confidence that it is well positioned to take advantage of any upswing in the market.
The expressed confidence that it is well positioned to take advantage of any upswing in the market.
by Goddy Egene \Thisday
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