Nigerian Breweries, celebrating 75th, pays shareholders N12.9bn dividends

BY CHARLES ABUEDE

In the year leading alcoholic and non-alcoholic brewer, Nigerian Breweries Plc, turned 75 years, it has approved a juicy 100 percent dividend payout to its millions of shareholders totalling N12.9 billion at N1.60 per share for the full year 2021.

This amount represents a 73.9 percent year on year increase from N0.92 per share paid out in 2020 and commemorates the brewer’s 75 years celebration of full operation in Nigeria.

The company, at a parlay with the media in Lagos, revealed that with the new dividend, shareholders can elect to have their dividend reinvested into the company to acquire new shares instead of cash dividends while shareholders in the diaspora or overseas based shareholders also get the opportunity to reinvest their money into the company and economy. Meanwhile, the company’s earnings per share in 2021 stand at N1.61 while its P/E ratio stands at 24.8X.

Hans Essadi, managing director and chief executive officer, said: “2021 has been the year of celebrating 75 years and we are able to celebrate with our partners, consumers with more to come. Nigerian Breweries is a company that has matched both the local and international markets and 75 years of operation is a milestone as we thought to celebrate across our operations, looking back on the journey and also looking forward. Though the road has not been easy, we feel that with what we have built – the portfolio and quality over the years have been and will continue to grow from strength to strength.

“When we look at inflation, revaluation of the naira, we can tell of the positive development in the market over the last years despite the FX challenge. Looking back at 2021 and seeing the numbers we have been able to present, we say we are confident of the long way we have come in 75 years,” Essadi concluded.

Looking forward to the 2022 operating year, Nigerian Breweries Plc noted that, “The Nigerian beer market fundamentals remain strong with high growth potential. We have the pricing strategy as well as the cost and value agenda to maintain leadership in the market, including driving profitability.

“Country volatility remains a high risk on macroeconomic indicators, security and infrastructure. Excise duty has just been introduced on non-alcoholic drinks and we aim to pass these on in the most optimal way possible. It is also a pre-election year with pre-election spend expected to translate to increased consumer spending.

“We have the history, footprint, brand portfolio and people to capture the expected growth in Nigeria. In 2022, we aim to complete our capacity extension enabling us to meet more of the customers and consumer demand.

“We remain committed to long term value creation for our shareholders and have the right strategy to achieve this,” the brewer stated.

Meanwhile, as filed to the Nigerian Exchange Group in its audited financial statement for the year ended December 31, 2021, the leading brewer in Nigeria reported strong earnings from sales at N437.3 billion in FY21 from N337.05 billion the previous year with the majority of the revenue coming from the domestic market, with more than 99 percent of the total sales at N437.2 billion. Also, with an income tax charge of N11 billion in the year 2021, the group reported a net profit of N12.7 billion as compared to N7.4 billion in FY20.