Nigerian Breweries Plc, on Thursday February 13, 2020, released its full year financial statements for the period ended December 31, 2019, with a final dividend of N1.51 kobo. The share price closed at N51.50 kobo on Friday 14.
The result shows that margins dropped across all line items, including the profit after tax which fell by 17% from N19.401 billion in 2018 to N16.105 billion in the period under consideration.
As a result, the dividend declared for the period dropped by N11.195bn or 37.5% from N29.828bn at the end of 2018, to N18.633bn, representing N2.01 dividend per share, which fell by 17.3% from the previous N2.43 each.
Payment is billed for April 23, to shareholders whose names appear in the company’s register of members at the close of business on March 4, 2020. The register of members, therefore, closes between March 5 and 11, 2020.
Other highlights of the audited account shows that, net revenue slipped marginally from N324.389 billion, down by 0.4% to N323.002 billion in 2019.
Nigerian Breweries Plc, the pioneer and largest brewing Company in Nigeria was incorporated in 1946 as “Nigerian Brewery Limited”. In June 1949, the Company recorded a landmark when the first bottle of STAR lager beer rolled out of its Lagos Brewery bottling lines.
In 1993, the Company acquired its fifth brewery in Enugu and in 2003, a sixth brewery (Ama Brewery), sited at Amaeke Ngwo in Enugu State was commissioned. Operations in the old Enugu Brewery were discontinued in 2004 following the completion of Ama Brewery. An ultra-modern malting plant was acquired in Aba in 2008.
In October 2011, the Company acquired majority equity interests in two companies, Sona Systems Associates Business Management Limited (Sona Systems), with two breweries in Ota and Kudenda, Kaduna, and Life Breweries Company Limited (Life Breweries) with a brewery in Onitsha.
Another malting plant (located in the Kudenda, Kaduna Brewery) was acquired as part of the Sona Systems acquisition. Sona Systems and Life Breweries were merged with the Company in the middle of 2012. At the end of 2014, an enlarged Nigerian Breweries Plc emerged from a merger with Consolidated Breweries Plc.
Three breweries at Imagbon, near Ijebu Ode, Awo-Omamma, near Owerri and Makurdi were added to the existing eight breweries as a result of the merger. The Onitsha and Makurdi locations were subsequently developed into Distribution Centres.