Nigerian Breweries Plc. posts revenue of ₦350.23 billion and Profit After Tax (PAT) of ₦19.44 billion in FY 2018. This represents a decline of 4.26% and 41.18% respectively compared to FY 2017.

The decline in revenue could be partly attributed to low consumer demand; while the decline in PAT could be attributed to the implementation of the ₦18 per 60cl beer/stout excise duty by the Federal governmentand market and distribution expenses.

Mr Uaboi Agbebaku, NB Plc Company Secretary/ Legal Director, said in a statement in Lagos on Monday that increased excise duty that came into effect during the year under review adversely affected its audited result.

“The 2018 results were adversely impacted by the increased excise duty rates that came into effect during the year and a challenging operating environment,” Agbebaku said.

Consequent upon the new excise regime, the company’s excise duty expense increased by 21.47% from ₦21.27 billion in FY 2017 to ₦25.84 billion in FY 2018, while market and distribution expenses increased by 4.77% y/y to ₦70.05 billion.

However, there was an improvement in the company’s Non-Current Assets and Liquidity Ratio position. For the former, the company expand its Property, Plant and Equipment capacity by 4.2% to ₦203.59 billion; while Liquidity Ratio measures – Current and Acid Test Ratios improved to 0.62:1 and 0.36:1 respectively compared to 0.56:1 and 0.23:1 in the previous year.

The company declared 243 kobo EPS and proposed to pay 183 kobo Dividend subject to deduction of withholding tax and board approval during its AGM slated for May 17th, 2019. However, both the EPS and Dividend for FY 2018 are 41% lower than the 413 kobo EPS and 313 kobo Dividend paid in FY 2017.

Nonetheless, the company continued its tradition of paying 100% of its PAT as a dividend (60 kobo interim and 183k final). This suggests that with better performance in 2019, investors can expect improved dividend payout from the company.

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