Following the macro economic volatilities and high cost of production, the prices of Star, Gulder lager beers and other brands are to go up as Nigerian Breweries (NB) Plc considers price hike to stay in competition.
Across the country, cost of raw material has skyrocketed owing to insecurity in the land and the stifling foreign exchange crisis that have pushed up inflation.
The Managing Director of the company . Han Essaadi said at the company’s Pre-Annual General Meeting (AGM) in Lagos, that the company has no choice than to pass on the contingencies being experienced in production onto the final consumers in order to remain in business.
Also, he stated that the recently introduced excise duty by the Federal Government at the beginning of the year is another factor influencing price adjustment for all its brands in the Nigerian markets.
“Country volatility remains a high risk on macro-economic indicators, security and infrastructure.
“Excise Duty has just been introduced on non-alcoholic drinks and we aim to pass these on in the most optimal way possible’.
However, despite the admission of negative impacts of macro-economic constraints in the cost of production, the NB Plc’s Managing Director noted that the conglomerate remain committed to long term value creation for its shareholders by adopting the right policy to mitigate the current economic headwinds facing production in the country.
He said: “We remain committed to long term value creation for our shareholders and have the right strategy to achieve this.
“We have the history, footprint, brand portfolio and people to capture the expected growth in Nigeria. In 2022, we aim to complete our capacity extension enabling us to meet more of the customers and consumer demand. Nigerian beer market fundamentals remain strong with a high growth potential.
“However, We have the pricing strategy as well as the cost and value agenda to maintain leadership in the market, including driving profitability.
Meanwhile, the company will propose N12.9 billion dividend of N1.61 per share to the shareholders at its AGM slated for April 22. It paid N7.5 billion at 94 kobo per share dividend in 2020…
It paid interim dividend paid 0.40kobo per share translating to N3.23 billion) while the proposed final dividend at N1.20 per share is N9.70 billion for 2021.
