GBOLABO AFUWAPE
The harsh economic conditions are gradually sniffing life out of Nigeria’s indigenous giant beverage outfit, Nigerian Breweries as seen in the steep decline of the dividend to N1.83 per share to its shareholders.
The N1.83 dividend was 41.53 percent lower than N3.13 declared for the 2017 financial year. The brewing firm had its total dividend- Earnings Per Share (EPS) come to N2.43, which is 41.16 percent lower than N4.13 recorded in 2018.
Figures in its 2018 full year Audited financial report showed that its Profit After Tax (PAT) declined to N19.401 billion representing 41.23 percent from N33.009 billion recorded in
Its Revenue for the year was largely flat as it declined marginally by 4.26 percent from N365.798 billion recorded in 2017 to N350.226 billion recorded in the year 2018, its net revenue moved in the same direction,declining marginally by 5.85 percent from N344.527 billion recorded in the 2017 against N324.389 billion recorded all through 2018.
2018 FULL YEAR RESULT SUMMARY
Regarding marketing and distribution, the brewing giant spent N70.052 billion in 2018 which is 4.77 percent greater than N66.864 billion spent in 2017, while its cost of sales decline by 1.77 percent to account for the N197.485 billion recorded in 2018 against the N 201.035 billion recorded in 2017.
Shareholders in response to the pretty weak financial report has charged Nigerian Breweries to brace-up to the challenges it is faced with so as not to sent out of the brewing business in Nigeria.
President of Progressive Shareholders Association of Nigeria (PSAN), Mr in an interview with InsideBusiness stated that Nigerian breweries needs to be flexible in its pricing, so as to effectively compete with other brewing brands in the country.
He said “the weak financial figures is a pointer to the largely stereotype business operations of Nigerian Breweries while other (mostly smaller) brewing firms have being innovative and more customer friendly”
“It is imperative for Nigerian Breweries to be flexible and disrupt itself so as to accommodate the customers who are having lower disposable income in the face of the stringent economic environment” he stated.
“Nigerian Breweries need to go back to aggressive advertising and marketing, they need to work around reducing the prices of their beverages as-well-as look at various ways of rewarding their customers from time to time” he reiterated.
STOCK PERFORMANCE
The stock of Nigerian Breweries in the last one year had declined by 36.83 percent from N131.40 recorded 18 February, 2018 to N83 recorded 18 February, 2019.
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