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HomeBusinessNigerian Breweries plans to delist non-performing brands, focuses on premium brands ~CEO

Nigerian Breweries plans to delist non-performing brands, focuses on premium brands ~CEO

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By Oludare Mayowa

Nigerian Breweries Plc said it plans to delist brands that are not performing well and be more focused on regions that bring in more sales and growth going forward.

According to the chief executive of the brewer of Heineken and other brands, Jordi Borrut Bel at a pre-AGM briefing on Wednesday, the company wants to “do better in our operating income and profit in the years ahead.”

Bel also said the company will review its cost to ensure that every naira counts going forward.

He said in 2020, the financial results of the company were adversely impacted by Covid-19, increase in the Value Added Tax (VAT) rate, forex devaluation and scarcity of dollars, which affected timely payment of the brewer’s foreign suppliers.

“For 2021, we will strive to sustain the performance of the second half of 2020, driving premiumisation and growth.

“However, we still expect a challenging operating environment with devaluation, forex scarcity, inflation and affordability.

“The capability of our people, focus on our consumers combined with commercial agility and position for growth gives us confidence that we will a continue wining with Nigeria,” Bel said.

The company posted a profit after tax of N7.52 billion in 2020 versus N16.10 billion in the previous year and a turnover of N337.01 billion compared with N323 billion in revenue in the previous year.

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NB is also paying out all its PAT of N7.52 billion as dividends payout to its shareholders but has a window of opportunity for the investors to reinvest part of their dividends into the company’s shares.

At its forthcoming annual general meeting, the company directors would also be recommending to Shareholders for their approval a right of election for qualifying shareholders to receive new ordinary shares in the company as against the final dividend in cash.

Analyzing the company’s 2020 financial result, Marcus Alves, Reporting & Accounting Manager of the company said the cost of operations in the years climbed due to dollar scarcity and devaluation of the local currency by the CBN.

NB, he said was not able to pay its foreign suppliers on time due to the dollar shortage, while the scarcity “really impacted the bottom line” in 2020.

He, however, said the company’s balance sheet remains strong despite the challenging year while its working capital was strong as well.

On her part, NB director of corporate affairs, Sade Morgan said the company is currently investing in clean energy and has installed solar energy in its Ibadan plants where its now ‘brewer from the sun.’

Morgan said NB intends to replicate the process of clean energy in other locations in its quest to encourage green and compliance with climate change.

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