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NB Plc’s shareholders to enjoy higher dividends

By BusinessNews Staff on April 10, 2014

Shareholders of Nigerian Breweries Plc will continue to enjoy robust dividend payment going forward, the Finance Director of the company, Mr. Jasper Hamaker, said Tuesday.

Speaking at the Pre-Annual General Meeting of media briefing in Lagos, Hamaker said the dividend policy of NB Plc is determined by the need to balance what is paid to shareholders and what is reinvested in the company.

He said the pay-out ratio was reduced to 60 per cent before2013 when funds were needed to finance some new acquisitions. Hamaker explained that now that the acquisitions have been concluded, the pay-out ratio has been increased to 80 per cent, which, he added, would be maintained going forward.

NB Plc ended 2013 with net profit of N43.1 billion, while the directors recommended gross dividend of N34 billion, translating into N4.50 per share.

Meanwhile, the Managing Director/Chief Executive Officer of NB Plc, Mr. Nicolaas Vervelde, said shareholders of the company whose names were recorded in the company’s register as at May 5, would be those to enjoy the N4.50 dividend that is expected to be approved at the company’s AGM scheduled to hold on May 15.

Vervelde explained that the company recorded a revenue of N269 billion and profit before tax of N62.2 billion, showing an increase of 6.3 per cent and 11.9 per cent over the N252 billion and N55.6 billion respectively recorded in 2012.

He said NB Plc maintained its leadership position in the market in spite of the challenging operating in environment in 2013. According to him, the company’s activities increased by seven per cent while profit after tax grew by 13 per cent being further impacted by lower financing costs.

The total brewed product market, he said, recorded a modest growth in 2013 with the value for money segment playing a significant role in it, while the investments the company has made over the years and most recently with the acquisitions and subsequent merger of the acquired companies, has placed NB Plc in its best position to compete.

“Despite the difficult operating environment, we recorded growths in all segments of the market and indeed out-perform the market. We sustained our enviable leadership position in the market,” he said.

Vervelde noted that the operating environment is expected to remain challenging in 2014, saying “we remain confident that we will continue to maintain our market leadership as well as take advantage of any growth opportunities that occur.”

[This Day]

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