By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Leading Nigerian brewer, Nigerian Breweries Plc (NB) said on Tuesday it has offered to pay investors of the company its highest ever dividend in the history of the company, Nicolaas Vervelde, managing director/CEO of the company said at its pre-annual general meeting (AGM) in Lagos Nigeria.
“NB Plc has proposed an all time high dividend of N37.2 billion amounting to N4.75 kobo per share in 2014 and the highest amount in the company’s history,” Vervelde said.
According to him, the second most capitalised company on the Nigerian Stock Exchange (NSE) had in October 2014 earlier paid an interim dividend of N9.4 billion amounting to N1.25 kobo per share and would now pay a final dividend of N27.7 billion amounting to N3.50 kobo subject to shareholders’ approval on May 13 at its annual general meeting (AGM).
If approved by shareholders, Nigerian Breweries the largest Fast Moving Consumer Goods (FMCG) would have paid out a total of N37.2 billion amounting to N4.75 kobo per share the highest ever in the history of the company to be paid to its 111,500 Nigerian shareholders.
Vervelde says the proposed total dividend of N4.75 kobo is an increase of approximately six (6) percent over the N4.50 kobo paid the previous year. “This is the highest amount in the history of the company, 86 percent payout ratio,” he added.
The CEO at NB Plc affirmed that the proposed payment date will be May 14, 2014 a day after the beer makers AGM, “shareholders who have not elected for the e-dividend payment option are encouraged to do so as this will ensure a faster receipt of the dividend as well as guarantee that your dividend is received in your bank account even when you have changed your address or traveled out of your location for a long time,” he said.
He disclosed that though the company completed its merger with Consolidated Breweries Plc (CB) in December 31, 2014, the income statement (profit and loss account) in the annual report and accounts do not include the results of the dissolved company since the results for that one (1) day (December 31, 2014) were not material enough to be included in the income statement.
A review of brewers audited financial statements for the year ended December 31, 2014 shows that post-tax profit inched down with a margin of 1.3 percent to N42.520 billion in 2014 from N43.080 billion in last year.
Similarly, pre-tax profit went down the same margin of 1.3 percent to N61.461 billion in the review period of 2014 from N62.240 billion in 2013 end.
Revenue dropped from N268.6 billion in 2013 to N266.4 billion in the review period of 2014; indicating a slight decline of 0.8 percent.
At the end of today’s trading on the Nigerian bourse, share price of the beer maker declined 0.63 percent to N157.00 from N158.00 the previous session; losing N1.00 kobo.