TheCable

Nigerian Breweries Plc has announced a profit after tax (PAT) of N19.4 billion for the 2018 financial year.

The company also made revenue of N324.4 billion during the year under review, according to its audited financial results released to the Nigerian Stock Exchange.

In a statement on Monday, Uaboi Agbebaku, the company’s legal director, said after-tax profit recorded in 2018 was lower than the N31.6 billion recorded in 2017 representing a 41 percent decline.

Revenue dipped from N344.5 billion recorded in 2017 to N324.4 billion in 2018, representing a six percent decline.

The statement said the company’s finances were “adversely impacted” by the increased excise duty rates that came into effect during the year, as well as a “challenging operating environment”.

In order to increase its fiscal revenues, the federal government had introduced a new excise duty regime which went into effect in June 2018 and would last till 2020.

Under the regime, beer and stout will attract 0.30k per centilitre (Cl) in 2018 and 0.35k per Cl each in 2019 and 2020.

On its annual general meeting coming up on May 17, the company said the board of directors will propose a dividend declaration to the tune of N19.4 billion to its shareholders.

This would amount to N2.43k per share, representing a hundred percent dividend payout ratio.

In 2018, Nigerian Breweries had paid an interim dividend of N4.8 billion which amounted to N0.60k per share, thus translating to a final dividend of N14.6 billion or N1.83k per share.

The statement said if the proposed final dividend is approved, it will become payable on May 20 to all shareholders whose names appear on the company’s register of members, at the close of business on March 6.