Nigerian Breweries Plc is seeking to raise up to N15 billion in the first and second series of its N100 billion commercial paper (CP) programme to support its short-term funding. The Series 1, which is for 90 days,has an effective yield of 11.59 per cent and will mature on July 22, 2019. On the other hand, the Series 2, which is for 182 days, has an effective yield of 14.43 per cent. It will mature on October 22, 2019. Both offers opened yesterday and they are expected to close on April 18.

Ironically, NB Plc is raising the N15 billion after its board of directors of has recommended that 100 per cent of the N19.401 billion profit after tax (PAT) recorded for the year ended December 31, 2018 be paid out as dividend to shareholders.


The brewing firm’s PAT fell by 41.2 per cent from N33 billion in 2017 to N19.4 billion in 2018. However, in its characteristics of paying all earnings as dividend, the board has recommended that a total dividend of N2.43 per share for the year be paid.

The company recorded a revenue of N324.4 billion, down marginally from N344.5 billion in 2017, while exercise duty rose from N21.271 billion to N25.837 billion.

Cost of sale reduced from N201 billion to N197 billion, bringing gross profit to N126.9 billion compared with N143.5 billion the previous year.

Marketing and distribution expenses rose from N66.863 billion to N70.052 billion, while administrative expenses reduced from N21.748 billion to N20.785 billion. Similarly, Net finance cost fell to N7.529 billion compared with N10.491 billion in 2017.

The company ended the year with profit before tax of N29.4 billion, down 36.9 per cent from N46.6 billion in 2017 and PAT of N19.4 billion as against N33 billion the previous year.

Based on the performance, the directors have recommended to the Company’s Shareholders at the annual general meeting(AGM) coming up on the 17th of May, 2019, the declaration of a total dividend of N19.4 billion, that is, N2.43 per share representing a hundred per cent dividend pay-out ratio.

The company had earlier, in 2018, paid an interim dividend of N4.8 billion which translated to N0.60k per share before the final dividend of N1.83 that will be N14.6 billion.

In the statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, NB Plc said the 2018 results were adversely impacted by the increased excise duty rates that came into effect during the year and a challenging operating environment.

https://www.thisdaylive.com/index.php/2019/04/12/nigerian-breweries-raises-n15bn-to-support-short-term-funding/?amp

Olingo is the ultimate...

I hope this their "Support to short term funding" will not in anyway increase the amount of my favorite beer anytime soon.

Mheen! People dey drink ooo! Wetin man go do naaw.

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Beer has contributed a lot to Nigeria than all the northerners combined

Shege

So the state that banned beer drinking will also benefit? Hmmm

bom

"Ironically, NB Plc is raising the N15 billion after its board of directors of has recommended that 100 per cent of the N19.401 billion profit after tax (PAT) recorded for the year ended December 31, 2018 be paid out as dividend to shareholders."

No retention rate. No profit plough back. End time shareholders

You know life is hard in Nigeria, when beer makers are finding difficult to have a good sales

Ironically, NB Plc is raising the N15 billion after its board of directors of has recommended that 100 per cent of the N19.401 billion profit after tax (PAT) recorded for the year ended December 31, 2018 be paid out as dividend to shareholders.

Penny wise pound foolish

Instead of using the PAT to fund the business,they're going into the market

How about explaining to shareholders the long term benefits of ploughing back the present year profit then going for a short term funding that'll incur some interest

If I get company with this kine people as board of directors walahi na the day dem recommend this rubbish I go commot them

I expect Nigeria's largest brewery to have profits many times greater than this! Why is it so low?

This is a country with about 200m people. It may be low purchasing power, with people preferring cheap illicit gin and paraga than a nice cold bottle of Star.

K

Hope Sharia states that ban alcohol will not benefits from this

The Ecomomy isn't favourable for premium expensive beer like NB brands. People now opt for cheaper alternative

Non of my business, am not their friend i prefer coke to beer

kingphilip:


Penny wise pound foolish

Instead of using the PAT to fund the business,they're going into the market

How about explaining to shareholders the long term benefits of ploughing back the present year profit then going for a short term funding that'll incur some interest

If I get company with this kine people as board of directors walahi na the day dem recommend this rubbish I go commot them

Lol...I get your point, but if you want to operate that way, don't look for external investors that will also be shareholders cos as shareholders in the company especially if they have reasonable shares, they do have a say on issues like that

kingphilip:


Penny wise pound foolish

Instead of using the PAT to fund the business,they're going into the market

How about explaining to shareholders the long term benefits of ploughing back the present year profit then going for a short term funding that'll incur some interest

If I get company with this kine people as board of directors walahi na the day dem recommend this rubbish I go commot them

This is the Dutch majority owners (Heineken) pulling out all their profit to go use in their country or elsewhere. No faith in the Nigerian economy obviously.

Meanwhile, our useless politicians will steal from their own people and pack all the money to oyibo land to go and hide it in foreign accounts.

I love brewery job.

I'm a certified brewer.

Nigerians consume more alcohol than water, no water company even church kpakpa wey de collect tithe without paying tax can boast of 15 billion profit after tax at the end of the year. This is just one beer company, well what do we do when we have lost faith in government and relationships, na shayo

godunia:
Nigerians consume more alcohol than water, no water company even church kpakpa wey de collect tithe without paying tax can boast of 15 billion profit after tax at the end of the year. This is just one beer company, well what do we do when we have lost faith in government and relationships, na shayo

Pls what does this mean for an investor should I be running or sticking around cuz their stock has been dropping dramatically lately. I'm tempted to sell but am hoping they bounce back.

Cc ernie4life

Not necessarily.

That theory does not apply here. You need to understand the dynamics of the organisation's finances.

kingphilip:


Penny wise pound foolish

Instead of using the PAT to fund the business,they're going into the market

How about explaining to shareholders the long term benefits of ploughing back the present year profit then going for a short term funding that'll incur some interest

If I get company with this kine people as board of directors walahi na the day dem recommend this rubbish I go commot them