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Tag: Nigerian Breweries

  • Nigerian Breweries to list N15b CPs on FMDQ

    Nigerian Breweries Plc will list its ongoing N15 billion commercial papers issuance on the FMDQ OTC Securities Exchange to provide investors opportunity to trade on their holdings.

    The brewer is offering 90-day and 182-day CPs to investors with a view to raising short-term funds for its operations. The issuance is part of the company’s N100 billion CP programme.

    The 90-day CPs carry effective and discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively. Both issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).

    The Series 1 90-day CPs are expected to mature on Monday July 22, 2019 while the Series 2 182-day CPs will mature on Tuesday, October 22, 2019. The offers opened on Thursday, April 11, 2019 and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.

    In a statement at the weekend, Company Secretary and Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku said the new CP programme would support the company’s cost management and complement traditional sources of financing to include non-bank financing options.

    He said the CPs also provide opportunity for non-equity investors to invest in the company.

    He noted that following the success of the company’s first N100 billion CP programme between 2015 and 2018, the board of directors of the company had approved a new N100 billion programme last July.

  • Nigerian Breweries supports Okpekpe race again

    Nigeria’s pioneer and largest brewing firm, Nigerian Breweries Plc has once again thrown its weight behind the Okpekpe international 10km road race.

    Last year the company joined the cast of corporate organisations which made history with the race as the first ever and only IAAF silver label road running event to hold in Nigeria and West Africa.

    “This year, Nigerian Breweries Plc has elected to continue to partner with us as a friend of the race,” says Zack Amodu, the race’s director of organisation.

    “The largest and biggest brewing firm in Nigeria wants to continue to be a part of history as we strive to bring the first IAAF gold label race to Nigeria and West Africa as well as the second in the entire continent of Africa after the Sanlam Cape Town Marathon in South Africa’, further said Amodu who confirmed Nigerian Breweries Plc will support the race with cash and some of their products.

    “Nigerian Breweries is a major player in sports sponsorship and promotion in Nigeria. We are indeed thrilled that such a socially responsible corporate organisation has thrown its weight behind us for the second year running. This is a testimony to the growing popularity of the Okpekpe race.

    In 2015 Okpekpe 10km road race became the first road race in Nigeria and West Africa to be granted an IAAF label status which means the race is regarded as one of the world’s leading road running events.

    ‘A label certifies the global sporting significance of the race, the organisational quality and the compliance with relevant IAAF competition rules’ explains Amodu who restated the organisers resolve to use a gold label template to organise this year’s event next month in the rustic and hilly town of Okpekpe in Etsako East local government area of Edo state.

    ‘Our target is to get a gold label for the race next year and the new IAAF road race rules have made it compulsory that we use the template of the label we are aspiring for in the event preceding the label. This means that this year’s race will have a gold label standard written all over it especially in terms of the quality of the elite field.”

    The seventh edition of the Okpekpe international 10km road race will hold on Saturday, May 25, 2019, and it will be live on television across the globe via Supersport, its official broadcast partner.

  • Nigerian Breweries to list N15b CPs on FMDQ

    Nigerian Breweries Plc will list its ongoing N15 billion commercial papers issuance on the FMDQ OTC Securities Exchange to provide investors opportunity to trade on their holdings.

    The brewer is offering 90-day and 182-day CPs to investors with a view to raising short-term funds for its operations. The issuance is part of the company’s N100 billion CP programme.

    The 90-day CPs carry effective and discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively. Both issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).

    The Series 1 90-day CPs are expected to mature on Monday July 22, 2019 while the Series 2 182-day CPs will mature on Tuesday, October 22, 2019. The offers opened on Thursday, April 11, 2019 and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.

    In a statement at the weekend, Company Secretary and Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku said the new CP programme would support the company’s cost management and complement traditional sources of financing to include non-bank financing options.

    He said the CPs also provide opportunity for non-equity investors to invest in the company.

    He noted that following the success of the company’s first N100 billion CP programme between 2015 and 2018, the board of directors of the company had approved a new N100 billion programme last July.

  • Nigerian Breweries floats N15b commercial papers

    Nigeria’s largest brewer, Nigerian Breweries Plc on Thursday launched a bid to raise N15 billion through issuance of new commercial papers (CPs). The issuance is part of the company’s N100 billion CP programme.

    The brewer is offering 90-day and 182-day CPs to investors with a view to raising short-term funds for its operations. The 90-day CPs carry effective and discount yields of 11.590 per cent and 11.2680 per cent respectively while the 182-day CPs carry 14.430 per cent and 13.4614 per cent respectively.

    Both issuances have been rated Aa by Agusto and AA by Global Credit Rating (GCR).

    The Series 1 90-day CPs are expected to mature on Monday July 22, 2019 while the Series 2 182-day CPs will mature on Tuesday, October 22, 2019.

    The offers opened Thursday and will close on Thursday, April 18, 2019. The settlement date is Tuesday, April 23, 2019.

    The new fund raising comes on the heels of the recent decision of the board of Nigerian Breweries to pay out the entire net profit of N19.4 billion recorded in 2018 as cash dividend to shareholders for the business year, despite decline in the performance of the company.

    Shareholders will receive final dividend of N14.6 billion in addition to N4.8 billion earlier paid by the company. A breakdown showed that shareholders will receive a final dividend per share of N1.83 in addition to interim dividend of 60 kobo, bringing total dividend per share for the year to N2.43.

    Read Also: Nigerian Breweries gets Corporate Affairs Director

    The dividend payout for the 2018 business year represented 41.2 per cent decline on the payout for 2017, reflecting the decline in the performance of the company. Nigerian Breweries had paid out its entire net earnings of N33.01 billion as cash dividend in 2017, representing dividend per share of N4.13.

    Key extracts of the audited report and accounts of Nigerian Breweries for the year ended December 31, 2018 showed that turnover dropped by 5.8 per cent from N344.53 billion in 2017 to N324.339 billion in 2018. Operating profit declined by 35.3 per cent from N57.13 billion to N36.96 billion. Profit before tax also dropped from N46.57 billion to N29.36 billion.

    After taxes, net profit declined by 41.2 per cent from N33.01 billion to N19.4 billion. Earnings per share consequently dropped from N4.13 to N2.43 while net asset per share slipped by 6.8 per cent from N22.37 in 2017 to N20.84 in 2018.

    Company Secretary and Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku, stated that the 2018 performance was adversely impacted by the increased excise duty rates that came into effect during the year as well as other challenges in the operating environment.

    Nigerian Breweries had explained that its decision to pay out its entire net profit after tax as cash dividend to shareholders demonstrated its strong performance and confidence over its operations.

  • NB pioneers first solar powered brewery

    Nigerian Breweries (NB) and CrossBoundary Energy yesterday signed Heineken’s first solar project in Africa.

    The project is the first of its kind for Nigeria – a fully-financed solar Power Purchase Agreement for a major Nigerian business customer.

    CrossBoundary Energy will be installing and operating a 650 kw solar plant located at NB’s Ibadan Brewery. It will operate the rooftop facility on behalf of Nigerian Breweries as part of a 15-year solar services agreement.

    Under the agreement, NB will only pay for solar power produced, receiving a single monthly bill that incorporates all maintenance, monitoring, insurance and financing costs.

    The solar energy plant will become operational this year, supplying 1GWh annually to the Ibadan brewery at a significant discount to their current cost of power, while reducing the site’s CO2 emissions by over 10,000 tonnes over the lifespan of the plant.

    Managing Director of Nigerian Breweries Plc Jordi Borrut Bel stated:

    “We are delighted to be a pioneer in the adoption of solar energy in Nigeria.

    “The solar plant will help power our world-class brewery in Ibadan, enabling us to deliver on commitments under our ‘Brewing a Better World’ initiatives and supporting Heineken’s global ‘Drop the C’ programme for renewable energy.”

  • Nigerian Breweries gets Corporate Affairs Director

    Nigerian Breweries has appointed Mrs. Sade Morgan as its Corporate Affairs Director and member of the Nigerian Breweries Executive Committee (EXCO).

    A statement by the company said  Mrs. Morgan will report to  Managing Director/CEO, Jordi Borrut Bel.

    She will also strengthen the company’s non-crisis stakeholder relations and drive a strategy-led relationship with government, regulatory organisations, host communities, the media and non-governmental organisations to reinforce the company’s philosophy of ‘Winning with Nigeria.’

    Mrs. Morgan started her career in 1993 in legal practice and subsequently worked across several industries and markets in Africa, Middle East, the United Kingdom and other parts of Europe.

    Joining British American Tobacco (BAT) in 2003, she worked over a period of 11 years in various management roles and jurisdictions with the multinational organisation.

    She was seconded to BAT Middle East and North Africa in 2006, sharing EXCO responsibility for the strategic management of the Gulf Corporation Council (GCC) business unit.

    In 2008, she was appointed Legal Director to the BAT Nigeria leadership team in which capacity she drove the regulatory and legal risk management agenda for the business unit’s 26 West Africa area markets.

     

     

  • Nigerian Breweries: no fake Amstel Malta, but new packaging

    Nigerian Breweries Plc (NB) on Tuesday, assured all its consumers and lovers of Amstel Malta that there is no fake Amstel Malta in the market.

    The brewery giant said the clarification became necessary after its attention was drawn to a video circulating on some social media platforms alleging the existence of a ‘fake’ Amstel Malta in the market.

    The company said the claim was based on the fact that there are differences in the Nigeria Industrial Standard (NIS) Logo on the Amstel Malta packaging.

    “We wish to clarify and assure all our valued consumers and lovers of Amstel Malta that there is no fake Amstel Malta in the market, the company said, in a statement made available to The Nation.

    NB said it recently revised the packaging of Amstel Malta and incorporated the new NIS Quality logo from the Standards Organisation of Nigeria (SON).

    It added that this change was approved by the relevant regulatory agencies, including the National Agency for Food, Drug Administration and Control (NAFDAC).

     

     

  • NSE demotes Nigerian Breweries to medium stock

    The Nigerian Stock Exchange (NSE) yesterday relegated Nigerian Breweries from its special status of high-priced stock to medium-priced stock, after the leading brewers slipped below the requirement for continuing recognition as high-priced stock.

    In a circular, the Exchange indicated that the review of Nigerian Breweries price trade activity over the most recent six months provided the basis for the reclassification of the company from high-priced stock to medium-priced stock.

    The NSE classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price.

    The high-priced stocks consist of large-cap equities that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

    The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

    The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

    As a medium-priced stock, stockbrokers would need 50,000 shares to move the share price of Nigerian Breweries as against 10,000 shares required for a high-priced stock. Also, the tick size for Nigerian Breweries has changed from 10 kobo to 5.0 kobo, implying that the company’s share price movement will be slower.

    Stocks under high-priced group shall have price change with minimum of 10,000 units; stocks under medium-priced group shall have price movement with a minimum of 50,000 units while stocks under low-priced group shall have price change with minimum volume of 100,000 units.

    According to the Exchange, Nigerian Breweries’ stock price dropped below the N100 threshold on August 31, 2018 and traded below N100 up till close of business on December 31, 2018. This indicated that Nigerian Breweries’ stock price has traded below N100 in the four out of the last six months.

  • Court to Nigerian Breweries: include retirement policy in handbook

    The National Industrial Court of Nigeria, sitting in Lagos, has directed the Nigerian Breweries Plc to include its early retirement policy in its Staff Handbook.

    Justice Nelson Ogbuanya of the court directed the firm to specify the pre-qualification, notice period and severance package, in order to avoid litigations on the policy.

    A former Export Services Manager, Bala Muhammed, claimed that N5,331,715.00 was wrongfully deducted from his severance package when he opted for early retirement under the company’s Early Retirement Policy.

    The company, however, insisted that the deduction was valid as it represented the sum equivalent to five months’ salary in lieu of his early retirement notice.

    The Nigerian Breweries said Muhammed was not entitled to full payment of the severance package without such deduction under the policy.

    Delivering judgment, Justice Ogbuanya, upon reviewing evidence and submissions of counsel for both parties, awarded a sum equivalent to three months to the claimant.

    The sum is for the notice period established in evidence for exercise of termination right by an employee of Muhammed’s status.

    “I find that there is no comprehensive policy document maintained by the defendant company evidencing the key aspects of the Early Retirement Policy, such as qualifying conditions, notice period and severance packages.

    “The ‘Exhibit CB5’ (handbook) is not helpful in this regard. It is this kind of anomaly that triggers needless litigation (as in the instant case), and capable of brewing industrial disharmony,” Justice Ogbuanya held.

    It was the judge’s considered view that best practice of labour relations entails that “such vital policy of a corporate organisation of the size of the defendant with retinue of workforce should not be left in doubt and hazy conjecture of its existence and practice”.

    Justice Ogbuanya held that: “It sould be unequivocally and clearly written in the major employment relations documents, such as the HR policy document of the company as well as the employee handbook.

    “Accordingly, I take this opportunity to direct the defendant to take immediate steps to include and incorporate in the defendant’s HR policy and employee handbook the entitlement conditions and packages for early retirement as well as the exit notice period as expressed in the memo dated 20th October 2014, Ref.ERM.1222/2285 issued by the Head, Employee Relations. I so hold.”

  • Nigerian Breweries declares N4.8b interim dividend

    The board of Directors of Nigerian Breweries (NB) Plc has approved the payment of N4.8 billion as interim cash dividend to shareholders for the third quarter.

    Shareholders will receive an interim dividend per share of 60 kobo, a drop of 40 kobo from the N1 paid for the same period in 2017.

    The current interim dividend will become payable on Monday, December 10, 2018 to all shareholders in the book of the company at close of business on Thursday, November 22, 2018.

    Key extracts of the interim report and accounts of Nigerian Breweries for the period ended September 30, 2018 showed that profit after tax dropped by 38.4 per cent N14.7 billion in third quarter 2018 as against N23.9 billion in comparable period of 2017. Operating profit had dropped by 34.4 per cent from N42.3 billion to N27.7 billion. Profit before tax also dropped by 34.7 per cent from N34.4 billion to N22.4 billion. Group turnover had dropped from N254.67 billion in third quarter 2017 to N238.07 billion in third quarter 2018. Earnings per share dropped from N3 in third quarter 2017 to N1.85 in third quarter 2018.

    Company Secretary and Legal Adviser, Nigerian Breweries Plc, Mr. Uaboi Agbebaku said the new excise duty regime which came into effect in June and the consequent effect of it, adversely impacted the third quarter results.

    He added that the company also undertook a rightsizing exercise which resulted in a substantial one-off cost during the quarter.