The board of directors of Nigerian Breweries Plc. has recommended an interim dividend of N4.8 billion to its shareholders.
The total dividend translates to 60 kobo per ordinary share of 50 kobo for the period ended September 30, 2018.
In a statement by the company on Monday, the interim dividend, which is subject to the deduction of withholding tax, is payable on Monday, December 10, 2018 to all shareholders registered in the company’s books at the close of business on Thursday, November 22, 2018.
An analysis of the firm’s unaudited and provisional results for the nine-month period ended September 30, 2018, shows that Nigerian Breweries recorded 11 percent drop in sales, indicating a decline in patronage.
Its profit before tax loss was N5.09 billion between July and September this year, while it paid N5.90 billion in the third quarter of 2018 on excise duty expenses up from N4.50 billion in the corresponding period in 2017.
Nigerian Breweries kept a positive profit of N14.76 billion for the nine-month period ended September 2018, this is about 38.4 percent drop from N23.98 billion recorded in the corresponding period in 2017.
Results from operating activities stood at N27.7 billion during the first nine months of the year, representing 34.4 percent decline from N42.3 billion recorded in the same period last year
Despite the positive record for the first nine months, it recorded a loss of N3.66 billion in the third quarter of this year.
The weaker results undermined investors’ sentiment, leading to the depreciation of the stock of Nigerian Breweries on the floor of the Nigerian Stock Exchange (NSE) yesterday, just as it lost 57 basis points to close at N87.50 per share.
Reacting to the results, the Company Secretary/Legal Adviser, Uaboi Agbebaku, explained that the new excise duty on alcoholic beverages and tobacco products introduced in June and the consequent effect of it, adversely impacted the third quarter results.
According to Agbebaku, the company undertook a rightsizing exercise which resulted in a substantial one- off cost during the quarter.