NB Blames Increased Excise Duty for the 41% Profit Drop

Enterprise Network-Nigerian Breweries Plc (NB) Enterprise Network-Nigerian Breweries Plc (NB)

NB Blames Increased Excise Duty for the 41% Profit Drop

Largest brewing company in Nigeria, Nigerian Breweries Plc (NB) in a statement by the Company Secretary/Legal Director, Mr Uaboi Agbebaku, says the 41 per cent decline in its profit after tax for the financial year ended December 31, 2018 is due to increased excise duty rates.

The statement said that the increase in excise duty during the year under review affected its audited result adversely.

He said, “The 2018 results were adversely impacted by the increased excise duty rates that came into effect during the year and a challenging operating environment. The company, during the period under review, posted a profit after tax of N19.4 billion against the N31.6 billion achieved in the corresponding period of 2017, which represents a decrease of 41 per cent.”

Agbebaku added that the revenue also dipped by six per cent to N324.4 billion from the N344.5 billion recorded in 2017. He stated that the company recommended a total dividend of N19.4 billion, which translated to N2.43 per share, to be approved by shareholders at the Annual General Meeting slated for May.

According to him, the company paid an interim dividend of N4.8 billion in 2018, which translated to 60 kobo per share, thus the final dividend will be N14.6 billion at N1.83 per share.

Agbebaku added that if the proposed final dividend was approved, it would be paid in May to shareholders whose names appear on the company’s register of members at the close of business on March 6, 2019.

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