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NB Plc explains N8bn profit


April 19, 2006/punch




Nigerian Breweries Plc on Tuesday attributed the growth of 62 per cent in profit after tax in 2005 to prudent management of resources and cost saving measures, among others.

NB Plc recorded a turnover of N80.235billion for the year ended December 31, 2005, an increase of nine per cent above the N73.594bil-lion posted in 2004.

But profit after tax rose by 62 per cent from N5.086bil-lion in 2004 to N8.254billion in 2005.

Speaking at the pre-Annual General Meeting press briefing in Lagos on Tuesday, the Managing Director/Chief Executive Officer of NB Plc, Mr. Festus Odimegwu, said that the company adopted cost saving measures, leveraged investments on technology, processes and secured finances at lower charges.

He said that the company also embarked on realignment exercises. “A major consequence of the realignment was the scaling down of Aba Brewery operations. As a result, the brewery is now used essentially for focused production. The old Enugu Brewery was also closed down as a result of the coming of Ama Brewery,” he said.

Interest paid by the company on commercial paper/overdrafts reduced from N5.413billion in 2004 to N2.598billion.

According to Odimegwu, following the improved results, the directors have recommended a final dividend of N7.9billion that translated to 105kobo per share in 2005, up by 163 per cent from N3.025billion paid in 2004.

Reviewing the performance of the company’s products in the market in 2005, the NB Plc boss said that it showed significant improvement over the performance in 2004.

“Our leadership position was further enhanced by the very strong performance of our brands. NB Plc closed the year with 78.5 per cent share in lager market and 44.4 per cent of the malt drinks category,” he said.

He gave assurance that investors in the company would continue to enjoy higher earnings.

“The reforms initiated by the government are beginning to put money back in circulation and competition for market shares and volume development is back on the table. For us, our future is assured and the outlook can be better because we have re-examined our past and the only way to go is our winning ways,” Odimegwu said.

The shares of the company closed at N30.30 per share on Tuesday while investors traded 1.623million units worth N49.240million in 302 deals.

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