NB Plc Promises More Shareholders Value And Happiness For Customers

Nigerian Breweries Plc has assured shareholders of enhanced dividend in the years ahead despite the challenging operating environment.

The Chief Executive Officer Mr Hans Essaadi, said the company was well positioned to ensure enhanced return on investment to all its stakeholders.

Essaadi made this known at the company’s pre- Annual General Meeting (AGM) media briefing on Thursday in Lagos.

He said that Nigerian beer market fundamental was strong with a high growth potential due to its teeming population despite the Russia-Ukraine crisis.

“We will continue to deliver sustainable growth to our shareholders through our wide range of products.”

“The deteriorating foreign exchange  situation has led to foreign suppliers running out of patience with their Nigerian partners, mostly manufacturers who are finding it difficult to settle their rising foreign payables.

“Our outstanding foreign payables rose by 76 per cent in 2021 and due to lack of foreign exchange, the task of procuring input materials has been difficult and this hampered the completion of our capacity extension plan.

“With the re-introduction of excise duty on non-alcoholic beverages and increase in excise duty rate for alcoholic beverages, these additional costs will lead to increase in the price of finished product.

“Volatility in the brewery sector is expected but we feel confident in our ability to grow and we have our pricing strategy as well as the cost and value agenda to maintain leadership in the market,” he said.

He noted that the company recommended a total dividend of N12.9 billion, culminating to N1.60 per share, due to every shareholder of the company for the 2021 financial year.

According to him, the dividend was against N7.5 billion paid in the comparative period of 2020.

Essaadi noted that the high cost of living and increased price in the cost of fuel particularly diesel, was currently slowing the growth of Fast Moving Consumer Goods (FMCG) sector.

He noted the company had remained dynamic and resilient with its processes, which enabled it to weather the storm in the past 75 years.

Mr Uaboi Agbebaku, the Company Secretary, said that NB had created a share for cash dividend scheme that would enable investors reinvest in the company and buy new shares with their dividend.

Agbebaku said the initiative was introduced for foreign investors that might face dividend repatriation challenges due to foreign exchange scarcity.

He said under the share for cash arrangement, both local and foreign investors, would have the opportunity to either receive cash or buy new shares with their dividend.

On the sustainability plan of the company, Shade Morgan, director corporate affairs said Nigerian Breweries is committed to making lives better for Nigerians. She disclosed the commitment of the company to increase employment opportunities for Nigerians.