Despite the harsh economic environment in the 2022 financial year, Nigeria Breweries Plc, has reiterated its commitment to continue operating in the country. Just as investors have been assured of sustainable returns on their investments. This was stated by the managing director / chief executive officer Mr Hans Essaadi at the company Pre Annual General Meeting Media Briefing in Lagos.
He explained that “it was a case of persevering and succeeding against all odds. And this was were able to do on the foundation of our Evergreen strategy to win anchored on the pillars of leading and accelerating premium larger led by Heineken, creating value in mainstream larger with our regional brands, intentionally expanding beyond bear with non alcoholic and adjacencies portfolio, enhancing our route to consumer, while improving customer experience, and building a compliant value creating digital eco-system”.
Essaadi, noted that forex loss was a major impact on the company profitability in 2022, as access to forex continues to be a major issue. Pointing out that the increase in the company trade payables has been driven majorly by outstanding payments to its foreign trade partners as a result of unavailability of enough forex at the official windows.
According to Nigerian Breweries Plc, “the biggest hit partner is IBECOR, a Belgian company and also part of the Heineken group, that supports us in the sourcing and procurement of critical raw and packaging materials required for our operations. To enable us to settle the long overdue payable to IBECOR, Heineken International is ready to make available a 110 million Euro loan to Nigeria Breweries”.
Commenting on this, the finance director Mr Bernardus Wessels Boer, explained that, being an inter company loan and considering the amount involved, shareholders approval is required. This according to him are parts of the agenda to be discussed and seek approval from shareholders at the company 77th Annual General Meeting (AGM) next week in Lagos.
Highlights of the 2022 audited financial statement shows that Net revenue grew by 26% from N437.2 billion in 2021 to N550.5 billion in 2022. Cost of sales, marketing and distribution expenses were under pressure due mainly to inflation, devaluation of the naira and high energy cost.
Although the operating margin was flat, the operating profit grew by 26% from N41.8 billion to N52.6 billion. The company profit after tax margin went down, driven mainly by the increase in forex losses, due to the naira devaluation and foreign currency scarcity.
Nevertheless, the profit after tax went up by 8% from N12.9 billion to N13.9 billion in the period under consideration. However, the board of directors has recommended a final dividend of N10.58 billion, which will be subject to deduction of withholding tax at the appropriate tax rate, and would be payable on the 26th of April 2023.
