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Nigerian Breweries blames new excise duty for profit dip

Nigerian Breweries blames new excise duty for profit dip
October 29
11:02 2018

Nigerian Breweries says the new excise duty regime introduced by the federal government on alcohol and spirits affected its earnings in the first nine months of 2018.

According to a statement released by the company, profit before tax dipped by 34.7% to stand at N22.4 billion from the N34.4 billion recorded in 2017.

Profit after tax dropped by 38.4%  to stand at N14.7 billion from the N23.9 billion.

Operating activities was N27.7 billion from the N42.3 billion recorded in 2017.

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“The Board of Directors of Nigerian Breweries Plc has approved an interim dividend of N4,798, 141, 231 (four billion, seven hundred and ninety eight million, one hundred and forty one thousand, two hundred and thirty one Naira), that is, 60 (sixty) kobo per ordinary share of 50 kobo in the share capital of the Company, for the period ended September 30, 2018,” the statement read.

“The interim dividend, which is subject to the deduction of withholding tax, is payable on Monday, 10th December 2018 to all shareholders registered in the books of the Company at the close of business on Thursday, 22nd November 2018.”

Commenting on the results, Uaboi Agbebaku, the company secretary,  said: “the new excise duty regime which came into effect in June and the consequent effect of it, adversely impacted the Third Quarter results”.

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According to Agbebaku, the company undertook a rightsizing exercise which resulted in a substantial one-off cost during the quarter.

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