Wednesday, November 30Inside Business Africa

NB declares N7.51 billion total dividend in 2020

Nigerian Breweries (NB) Plc has announced a final dividend of N5.51 billion, translating to 69 kobo per share, bringing the total dividend declared in 2020 to N7.51 billion.

The company had in October 2020 declared an interim dividend of 25 kobo per share. Reviewing its 2020 performance at the pre-yearly general meeting of the company held in Lagos, the Managing Director, Jordi Borrut Bell, said the company provided an option for shareholders to receive new shares instead of the cash dividend.

Borrut Bel said the dividend would be paid to shareholders whose names appear in the register of members as at the close of business on March 10, 2021, while the payment is due for April 23, 2021.

According to him, the share option would allow shareholders to plough the money back into the company and increase their shareholding without incurring capital market transaction costs.

Also, he said the company would benefit from the share option as the cash, which would have been paid as cash dividend would be retained by the company to boost its working capital.

He said apart from delivering a profit of N7.52 billion, it also recorded net revenue of N337.01 billion for the 2020 financial year as against N323.00 billion recorded in 2019.

According to him, while marketing and distribution expenses experienced a dip from N77.7 billion in 2019 to 70.7 billion in this financial year, administrative expenses recorded a 1.79 per cent decline from N19.3 billion to N18.96 billion, which was largely informed by the elimination of bad costs.

Borrut Bel stated that despite other operating challenges coupled with the COVID-19 pandemic that affected businesses generally, the company maintained a strong and healthy balance sheet.

He said the brewery industry during the review period was impacted by COVID-19 restrictions resulting in change in consumer habits and shrinking demands.

To deliver better returns to shareholders in the current financial year, Borrut Bel said that the company intends to review all cost lines and prioritise key regions and reinvestment.

He assured stakeholders that the company remains committed to ensuring that the health, safety and welfare of its employees, customers and partners are protected.

Source: Guardian

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