Nigerian Breweries attributes 2016 growth to cost leadership strategies
Despite the challenging macroeconomic environment, Nigerian Breweries was still able to record a revenue growth of about 7 percent in the 2016 business year, mainly as a result of its cost optimization strategy, innovation and consumer value addition process.
Managing Director of the Company, Mr. Nicolaas Vervelde told journalists at a media briefing in Lagos on Tuesday, ahead of its Annual General Meeting slated for 3rd May 2017, which the analysis of the audited results shows that the N314 billion revenue represents a 6.7% growth from the N293 billion it recorded in 2015. The declared total dividend of N3.58 per share is also a 100% earnings pay out.
“When all factors are considered, our results have been positive and creditable over the years. Despite the deterioration in consumer purchasing power, our robust brand portfolio which covers a broad spectrum of consumer needs enabled us to protect revenue and profitability,” he said.
“The operating environment in 2016 was very challenging especially from an input cost, FOREX and purchasing power perspectives. Our volume growth was in the mid-single digit region, coupled with the price increases that we implemented positively impacted our revenue growth, “he added.
Meanwhile the Board of the company has recommended a total dividend of N28, 386, 181, 179.00 for approval at the forthcoming Annual General Meeting which holds on May 3, 2017. The total dividend amounts to N3.58 per ordinary share of 50K each for the 2016 financial year. It would be recalled that the company had earlier paid an interim dividend of N7.9 billion that is, N1.00 last year to its shareholders. Thus, the final dividend will be N20. 5 billion that is, N2.58 per share.
According to Vervelde, the operating environment in 2017 is expected to be similar to 2016, but the company is confident that it is well positioned to adapt to the operating environment as required, and stay committed to delivering a good return on investment to shareholders.
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