Shareholders laud NB’s audacious strides
By Oghale Mafuru
Shareholders of Nigeria’s foremost brewing company, Nigerian Breweries Plc, have lauded the impressive performance of the company for the year 2022 despite the economic headwinds which have negatively impacted every sector of the economy.
These commendations were made during the 77th Annual General Meeting, AGM, of the company held at the Civic Centre in Lagos, where a dividend payout of N13.87 billion for the 2022 financial year was approved by the shareholders.
Mr. Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, extolled the management of the company for their impeccable and forward thinking leadership which is evident in the improved performance in profit and revenue generation recorded by the company for the 2022 financial year.
He said: “The company’s financial performance for the 2022 financial year was good. NB Plc has done well with the payment of dividends to shareholders, especially with the economic hardship we are facing and the low purchasing power of consumers. It shows that the company saved for the rainy day”.
Also speaking, another shareholder, Sir Sunny Nwosu, the Chairman Emeritus, the Independent Shareholders Association of Nigeria (ISAN), lauded the company’s management for its financial performance despite the challenging macroeconomic outlook.
While commending the company for the payment of dividends to shareholders, Nwosu hailed the current leadership for demonstrating immense capacity to drive the company to greater heights with some of the bold decisions taken in the course of the 2022 financial year.
“I would like to express deep appreciation to the board and management of Nigerian Breweries Plc for showing great leadership in managing the business amidst challenges. On behalf of other shareholders, I would like to commend everyone, including the staff, for their contribution that has resulted in a good performance for the company. I am confident that this year would also benefit the company,” he said.
Meanwhile, an inter-company loan of 110 million euros from Heineken International, which is meant to settle foreign currency-denominated payment obligations of the company, was also authorized by shareholders.
Speaking during the AGM, the outgoing Chairman of the company’s Board of Directors, Chief Kola Jamodu, explained that each shareholder would receive a final dividend of N1.03 having earlier received an interim dividend of 40k that was approved in October 2022.
Jamodu noted that despite the market’s competitive nature, the company maintained its market leadership position while ensuring value to the business and its esteemed shareholders.
According to him, the company had demonstrated strong resilience under difficult economic circumstances, which were occasioned by inflation and low disposable income.
Speaking on the loan, he stressed that it was necessary at this time to help the company address the challenge of forex and pay off some of its overdue foreign currency denominated payables. This will help to ensure that there is no disruption in its operations due to a shortage of imported raw materials as its procurement agent would have stopped its services as a result of the overdue payables.
“Forex loss was a major impact on our profitability in 2022. Access to Forex continues to be a major issue for NB Plc. The increase in our trade payables has been driven majorly by outstanding payments to our foreign trade partners due to unavailability of forex at the official windows”, he said.
On his part, Mr. Hans Essaadi, the Managing Director/CEO, Nigerian Breweries Plc, while restating his unalloyed commitment to the continued growth of the company in spite of the current economic headwinds expressed his gratitude to all the company’s shareholders for their invaluable support.
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