Amidst harsh economic environment, Nigerian Breweries records N12.7bn profit

The Nigerian Breweries Plc recorded some milestones despite the harsh economic environment.

The company grew profit by over 72 per cent to N12.7 billion and hopes to pay shareholders a total dividend of N12.92 billion for the financial year ended December 31, 2021.

This represents N1.60 per ordinary share of 50 kobo each. The total dividend consisted of an interim dividend N3.230 billion, that is 40 kobo per share which had earlier been paid and final dividend of N9.690 billion representing N1.20 per share.

Addressing newsmen in Ikeja, during its 76th pre-AGM media briefing, the Chief Executive Officer, NB Plc, Hans Essaadi, said despite the challenging operating environment, the company remained dynamic with its processes and was able to remain resilient and grow from strength to strength.

“The deteriorating forex situation has led to foreign Suppliers running out of patience with their Nigerian partners, mostly manufactures 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 FX, the task of procuring input materials has been arduous and this hampered the completion of our capacity extension plan,” regretted the CEO.

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

According to him, the company had also remained dynamic and resilient with its processes, which has enabled it to weather the storm in the past 75 years.

“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 as well as sustain shareholders’ value and meet consumer demands in 2022″, Essaadi said.

This is just the CEO assured that the company would make deliberate efforts to boost jobs creation, noting that despite the uncertainties of the COVID-19 pandemic NB Plc never cut down jobs.

Mrs. Sade Morgan, the company’s Corporate Affairs Director, said the brewery giant’s sustainability project tagged, ‘Evergreen 2025 was aimed at growing the business, its people and the future.