Nigeria: Nigerian Breweries shareholders ok EUR110 mln loan from Heineken International

Shareholders of Nigerian Breweries (NB) Plc have approved a resolution authorising the company to take an intercompany loan of 110 million euros from Heineken International, The Nation Newspaper reported on May 1.

Speaking during the Annual General Meeting (AGM) of the company in Lagos, Chairman, Nigerian Breweries (NB) Plc, Chief Kola Jamodu, said the loan was necessary to help the company address the challenge of foreign exchange (forex) and pay off some of its overdue foreign currency denominated payables.

He said the loan would ensure that there was no disruption in the company’s operations due to a shortage of imported raw materials as its procurement agent would have stopped its services as a result 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 unavailability of forex at the official windows,” Jamodu, who retired, after the April 26 meeting, on April 30, 2023, said.

He 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 the company had demonstrated strong resilience under difficult economic circumstances, which were occasioned by inflation and low disposable income.

Shareholders unanimously approved the dividend payout of N13.87 billion for the 2022 financial year. Shareholder would receive a final dividend of N1.03 per share, having earlier received an interim dividend of 40 kobo that was approved in October 2022.

Shareholders described the payment of dividends to shareholders as commendable, despite the challenges confronting the business.

National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, applauded the board and management of the company for managing the business effectively, as reflected in the improved performance in profit and revenue recorded by the company for the 2022 financial year.

“The company’s financial performance for the 2022 financial year was good. NB Plc has done well with the payment of dividends to shareholders, especially with the economic hardship we are facing and the low purchasing power of consumers. It shows that the company saved for the rainy day,” Okezie said.

Chairman Emeritus, the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, lauded the company’s management for its financial performance despite the challenging macroeconomic outlook.

While commending the company for the payment of dividends to shareholders, Nwosu hailed the current leadership for demonstrating immense capacity to drive the company to greater heights with some of the bold decisions taken in the course of the 2022 financial year.

“I would like to express deep appreciation to the board and management of Nigerian Breweries Plc for showing great leadership in managing the business amidst challenges. On behalf of other shareholders, I would like to commend everyone, including the staff, for their contribution that has resulted in a good performance for the company. I am confident that this year would also benefit the company,” he said.

Managing Director, Nigerian Breweries Plc, Mr. Hans Essaadi, expressed his gratitude to all the company’s shareholders for their invaluable support, stating that the company remains committed to delivering long-term growth to its shareholders, inspite of the current economic headwinds and challenges.

Company Secretary & Legal Director, Nigerian Breweries Plc, Mr. Uaboi Agbebaku, stated that the 2022 financial year witnessed a growth in performance, as evident in the rise of its net revenue by 26 per cent from N437.2 billion in 2021 to N550.5 billion in 2022.

A breakdown of the company’s audited results shows that the profit after tax recorded for the 2022 financial year grew by eight per cent from N12.9 billion to N13.9 billion.

He explained that the cost of sales, marketing, and distribution expenses were under severe pressure due to inflation, devaluation of the naira, and high energy costs.

Jamodu yesterday retired as the chairman of NB, a post he held for one and half decades.

At its meeting on April 25, 2023, the board of NB had accepted a notice of retirement from Jamodu. With this, Jamodu retired from the board and as the chairman of the board on April 30, 2023.

Jamodu joined the board effective March 1, 2006 and subsequently became the chairman from January 1, 2008.

In a regulatory filing signed by NB’s company secretary, Uaboi Agbebaku, the company said, in line with the board’s succession plan, the board at the April 25, 2023, appointed Mr. Asue Ighodalo as a non-executive chairman effective May 1, 2023. Ighodalo joined the board on January 1, 2022.

The company commended Jamodu for its outstanding leadership noting that during his tenure, the company recorded several landmarks.

“During that period, he led the board to oversee the company’s massive growth and transformation as well as its continuing leadership in the brewed product market, including acquisitions and mergers between 2011 and 2014,” NB stated.

Ighodalo is a lawyer with more than 35 years of experience and a leading figure in corporate Nigeria. He chairs the boards of Sterling Bank Plc and Levene Energy Group and he is also on the board of Okomu Oil Palm Plc. He is the immediate past chairman of the Nigerian Economic Summit Group.

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