Don't Miss

Nigerian Breweries declares N23.8bn profit after tax

By BusinessNews Staff on July 24, 2014

Nigerian Breweries has reported a profit after tax of N23.872bn for the six-month period ended June 30, 2014.

The amount represents a 15.5 per cent increase on the N20.663bn it posted for the corresponding period of 2013.

The company’s unaudited financial statements for the period, which it filed with the Nigerian Stock Exchange on Monday, showed that its profit before tax for the period was N33.882bn, indicating a 14.4 per cent rise on its PBT for the same period of last year, which stood at N29.607bn.

Nigerian Breweries’ revenue also rose to N141.495bn in the first half of 2014, 5.7 per cent higher than the N133.815bn it reported for the same period of last year.

The company’s basic earnings per share and basic diluted earnings per share appreciated by 15.5 per cent each to N315 from the N273 declared in the first half of 2013.

The company had in May paid a dividend of N34.032bn to its shareholders for the 2013 financial year, having received approval to do so at its 68th Annual General Meeting held on May 14.

The dividend, which represented N4.50 per ordinary share of 50 kobo each, had been recommended by the board after the company recorded a 13 per cent increase in its profit in 2013.

Ahead of the AGM, Nigerian Breweries and Consolidated Breweries had confirmed that they were in talks over a merger of both companies.

The firms also confirmed that a pre-merger application had been filed with the Securities and Exchange Commission for approval, while Nigerian Breweries Plc had duly lodged a notification with the Nigerian Stock Exchange, on which it is listed.

They said in a joint statement that “On receipt of the regulatory approval, both parties will take further steps to consummate the proposed merger including obtaining the approval of their respective shareholders to the scheme of merger at separate court-ordered meetings.

“Until regulatory and other approvals are obtained, both companies (who are majority-owned subsidiaries of Heineken NV) will continue to operate as usual.”

At the AGM, the shareholders praised the move, stressing that it would strengthen the company’s ability to meet consumer expectations and ensure higher returns on their investment, according to the statement.

Nigerian Breweries for its part had assured them that “the company sees the strong presence of the emerging entity across the premium, mainstream, and value beer segments of the market as a major competitive advantage. It also expects increased profit margins on improved operational efficiency.”

[Punch]

headline