Shareholders of Nigerian Breweries (NB) Plc have unanimously approved N13.87 billion for the 2022 financial year.

At the 77th yearly general meeting of the company held in Lagos at the weekend, the shareholders also authorised an intercompany loan of 110 million euros from Heineken International, which is meant to settle foreign currency-denominated payment obligations of the company.

Speaking at the meeting, the outgoing Chairman of the company, Kola Jamodu, explained that each shareholder would receive a final dividend of N1.03 having earlier paid an interim dividend of 40 kobo 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 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 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.

According to him, the move would 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 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. 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,” he said.

Managing Director/CEO of the company, Hans Essaadi, expressed gratitude to shareholders for their invaluable support, stating that the company remains committed to delivering long-term growth to its shareholders, despite the current economic challenges.

Also speaking at the meeting, the company’s Secretary and Legal Director, Uaboi Agbebaku, stated that the 2022 financial year witnessed a growth in performance, as evidenced 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 its Profit after Tax (PAT) for the period grew by 8 per cent from N12.9 billion to N13.9 billion.

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