Nigerian Breweries, 2014 Results Shows Negative Records All Major Indices

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Nigerian Breweries Brands

From Benjamin a ameh, Lagos

Chief Kolawole Jamodu, Chairman, Board Directors, Nigerian Breweries plc in parts of his statements to shareholders during Annual General Meetings (AGM) said the much anticipated succour in the power sector as result of the privatization is yet to materialize. Businesses and homes continue to generate their own power at huge cost. Stable power supply remains a keys factor for economic and business development. It is therefore, expected that the new owners will bring the needed respite to this critical area of the nation’s economy.

Chief Jamodu noted that “the tight monetary policy of the central bank of Nigeria (CBN) aimed at sustaining a single digit inflation and stable exchange rate among others. CBN was able to maintain the stability of the naira to a large extent and also kept inflation low at a single digit level. Further, the CBN was able to facilitate business confidence. However, access to financial services for small and medium size enterprises which is key to the achievement of the desired inclusive growth, is an area that needs to be improved upon. High cost of capital remains a disincentive to the type of investment that would help to reduce unemployment.

“Inefficient and high costs of power supply as well as multiple taxes were some of the key factors that contributed to the high cost of running business. The challenges in the transportation sector especially with regard to production and distribution of goods did not improve. The federal road infrastructure remains in a bad stable.

“The poverty level remained high and that obviously led to down-trading in the market with a shift to the savings segment by some consumers. The market has therefore become extremely competitive. The investments that we have made over the years (and most recently with the acquisitions and subsequent merger of the acquired companies) together with our Cost Leadership programme have placed us in best position to compete. Therefore, despite the difficult operating environment, we recorded growth in all segments of the market and indeed out-performed the market. We sustained our enviable leadership position in the market.

In his words: The board remains confident that with our brands, our people and our passion for excellence as well as for the consumer, we are as well placed to maintain and build on our leadership position in the market.”

According to the results made available by the Nigerian Stock Exchange (NSE) on Thursday shown Nigerian Breweries directors recommended a final cash dividend of N3.50 kobo per share with 7,562,704,432 outstanding share and 1,012,267,988,223.20 market capitalsiation respectively which translated into a pay ratio of 84.52 per cent and dividend yield of 3.68 per cent with a revenue of N266.37 billion with marginal down of 0.8 per cent over N268.6 billion posted in 2013.

Other indices are cost of sales fell from N132.13 billion to N130.8 billion, while distribution and other administrative expenses rose from N69.38billion to N70 billion while income reduced 17 per cent from N2.1 billion to N1.7 billion also finance charges fell by 22 per cent from N6.9 billion to N5.4 billion.
The major two indices shown negative: Profit before tax fell marginally to N61.46 billion, as against N62.2 billion in 2013, while profit after tax fell from N43.1 billion toN42.52 billion. Earnings per share declined from 570 kobo to 562 kobo.


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