Nigerian Breweries Recorded Increased Sales Volume In 2020, Cuts Dividend

The foremost brewing company, Nigerian Breweries Plc recorded significant growth in sales volume in the 2020 financial year despite the impact of the COVID-19 pandemic on businesses.

This was disclosed by Managing Director, Nigerian Breweries Plc, Mr Jordi Borrut Bel at the Pre-Annual General Meeting media briefing of the company held in Lagos on Wednesday, April 7.

Borrut Bel stated that despite the challenges of the COVID-19 pandemic and economic recession, the company recorded an improved performance, primarily driven by robust sales volume growth.

According to him, the significant increase in sales for the 2020 financial year (despite the challenges of COVID-19) could be attributed to the company’s quest for innovation, adoption of e-commerce and other digital best practices to drive sales as well as the hard work and commitment of its staff.

The significant sales turnover for the year 2020 notwithstanding, the board at the AGM recommended that the final dividend of N5,517,862,415 (Five Billion, Five Hundred and Seventeen Million, Eight Hundred and Sixty Two Thousand, Four Hundred and Fifteen Naira only), that is, 69 (Sixty Nine) Kobo per share be converted to equity by the shareholders for further investment by the company.

It is, however, noteworthy that the company had earlier paid out an interim dividend of N1,999,225,513 (One Billion, Nine Hundred and Ninety-Nine Million, Two Hundred and Twenty Five Thousand, Five Hundred and Thirteen Naira only), that is, 25 (Twenty Five) Kobo per share. These two cumulatively brings to total dividend for the year under review to a total dividend of N7,517,087,928 (Seven Billion, Five Hundred and Seventeen Million, Eighty-Seven Thousand, Nine Hundred and Twenty Eight Naira only), that is, 94 (Ninety Four) Kobo only per ordinary share of Fifty (50) kobo each.

According to the financial report, despite the increased sales volume recorded in the year under review despite the Coronavirus pandemic and the attendant business lockdowns, the final dividend falls short of the 2019 figure of N16,073,773,123 (Sixteen Billion, Seventy-Three Million, Seven Hundred and Seventy-Three Thousand, One Hundred and Twenty Three Naira only). Similarly, while shareholders earned N2.01 (Two Naira and One Kobo only) per ordinary share of fifty (50) kobo each in 2019, the same ordinary of 50k fetches 94k in the year under review.

Borrut Bel, however, listed some of the innovations that brought about the increased sales volume to include the introduction of Eco-friendly labels for NB non–alcoholic brands; category penetration with premium propositions through the launch of the new Desperado Brand (Beer flavoured with Tequila), the launch of two new Maltina variants (Pineapple & Vanilla), change in package designs for some of our existing brands (Legend, Star Radler, Amstel Malta and Life ) to deepen consumer affinity; Introduction of new pack formats and SKU’s extension, product line extensions

While noting that innovation will remain a major driver for growth in the beer industry, he reaffirmed NB’s commitment to remaining a leader in this field, introducing new products and ideas to drive market demand and meet the yearning of its consumers.

The Managing Director assured stakeholders that the company remains committed to not only keeping its balance sheet strong but ensuring that the health, safety and welfare of its employees, customers and partners are protected.