Nigeria: Nigerian Breweries moves to expand operations, sustains market leadership

Nigerian Breweries plc has embarked on an aggressive expansion plan designed to strengthen its current market position and to support the Federal Government’s vision of promoting investment in the country, Business Day reported May 29. Kola Jamodu, the Company’s Chairman, disclosed this to shareholders at the Company’s 62nd Annual General Meeting held in Lagos recently. The multi-million naira investments include the new malting plant in Aba, new bottling line for Fayrouz in Ibadan, new brewhouses in Lagos and Kaduna and new bottling line in Aba.

Despite the difficult operating environment in the country, he said the Company performed exceedingly well in 2007. According to him, the growth of the brewed products market continued in 2007 with Company gaining market share to reinforce its leadership position. The growth, he added, has been largely due to strong consumer demand, continuous improvement in product packaging and the launch of Star, Heineken and Amstel Malta in Cans.

All these he noted, contributed largely to the unprecedented turnover (sales) turnover of N111.7 billion turnover for the financial year ended 31st December, 2007, which is a 29 percent increase over the N86.3 billion declared for the 2006 financial year.
The results also showed a Profit before Taxation (PBT) of N27.8 billion, an astronomical 70 percent increase over the N16.4 billion recorded in 2006, while Profit after Taxation (PAT) stood at N18.9 billion in 2007, showing a 74 percent increase over N10.9 billion declared for the 2006 financial year.

Based on the impressive performance, the Chairman informed the shareholders that the board of directors had proposed for the shareholders’ approval, a 74 percent increase in the total dividend for the year ended December 31, 2007 compared to that of 2006. That is, a total dividend of N18.906 million which translates to 250 kobo per share over the 144 kobo paid for 2006. Having paid an interim dividend of N4.159 million, that is, 55 kobo per share in October 2007, he added that the final dividend being proposed amounted to N14.746 million, that is, 195 kobo per share.

It was no surprise therefore that when the motion was put to the meeting, the shareholders overwhelmingly voted in favour of approving the dividend proposed to them. The total dividend of 250 kobo per share is the highest ever paid by the Company. Shareholders also praised the directors for the good performances recorded in 2007. Only shareholders registered in the Company’s Register of Members as at April 14, 2008 were entitled to the payment of the final dividend.

The Managing Director/Chief Executive officer, Michiel Herkemij expressed the confidence that the Company will continue to deliver value to its shareholders.

03 June, 2008