Nigerian Breweries Plc has announced that its revenue in 2022 grew to N550.84 billion as against N437.29 billion recorded in 2021.
This is even as the Board of Directors declared a total dividend of N13.87 billion for its shareholders for the financial year ending December 31, 2022.
The dividend, which is subject to shareholders’ approval at the company’s forthcoming Annual General Meeting (AGM), translates to 143 kobo per ordinary share of 50 kobo each.
According to a filing obtained from the Nigerian Exchange Limited (NGX), the NB’s revenue grew by 26 per cent due to strong pricing and premium strategies embarked by the company in the period under review. The performance was also supported by a strong performance of the premium portfolio, led by Tiger and Desperados, and the continued momentum of Heineken, while the low and non-alcoholic portfolios remained broadly stable.
According to the management, the total volume in the period weakened, reflective of the pressure on consumer disposable income amid supply chain challenges. The company’s gross profit margin expanded by 206 basis points to 38.7 per cent in 2022, (2021: 36.7 per cent), as the strong revenue growth (+25.9 per cent y/y) outweighed the increases in the cost of sales (+21.8 per cent y/y). The higher cost in the period was influenced by the highly inflationary environment, devaluation of the naira, and high energy price.
“While the operating margin was flat, our profit after tax margin was reduced driven mainly by the increase in foreign exchange losses due to the naira devaluation and foreign currency scarcity. Despite the net margin decrease, the company grew its profit after tax by 8 per cent,” the company said.
Overall, the company recorded a pre-tax profit of N17.34 billion in 2022 (-26.8 per cent y/y). Following a tax expense of N4.15 billion in the period, profit after tax was higher at N13.19 billion (2021: N12.67 billion)”, the company said.