NB’s 41 pct profit drop due to increased excise duty

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Nigerian Breweries Plc 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 Company Secretary/Legal Director, Nigerian Breweries, Mr Uaboi Agbebaku, said in a statement 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 ₦19.4 billion against the ₦31.6 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 ₦324.4 billion from the ₦344.5 billion recorded in 2017.

He stated that the company recommended a total dividend of ₦19.4 billion, which translated to ₦2.43 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 ₦4.8 billion in 2018, which translated to 60 kobo per share, thus the final dividend will be ₦14.6 billion at ₦1.83 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.