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Shareholders approve Nigerian Breweries N13.87b dividend payout

Shareholders of Nigerian Breweries Plc have endorsed the dividend payout of N13.87 billion for the 2022 financial year.

The dividend was approved at the 77th Annual General Meeting of the company held in Lagos on Wednesday, April 26, 2023.

The shareholders authorized an intercompany loan of 110 million euros from Heineken International, which is meant to settle foreign currency-denominated payment obligations of the company.

peaking during the Annual General Meeting, 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. He said that 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 because 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 the unavailability of forex at the official windows”, he said.

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