NB Plc, Fidson Declare Dividends

NB Plc, Fidson Declare Dividends

Nigeria’s foremost brewing firm, Nigerian Breweries Plc last week announced an interim dividend of N1.50 per share for the third quarter ended September 30, 2009.

Also, Fidson Healthcare Plc has announced a dividend of N0.22 for the year ended June 30, 2009.
According to the notice of dividend sent to the Nigerian Stock Exchange (NSE), the register of members of Nigerian Breweries for the purpose of the dividend will close on January 27, 2010, while the dividend will be paid on February 8, 2010.
The company is paying the dividend out of a profit after tax of N21.34 billion for the third quarter compared with N17.7 billion in the corresponding period of 2008.

Nigerian Breweries is known for a robust dividend policy and had always declared interim dividend. In 2009, the company paid interim dividends twice before a final one in respect of 2008. It first paid an interim dividend of N1, followed it with N1.90 before a final dividend of N0.50.

The management of Nigerian Breweries had last year explained that the robust dividend policy was adopted because the company has no immediate use for the cash and would rather pay it to shareholders instead keeping it in its vault.
Meanwhile, Fidson Healthcare Plc also declared a dividend of N0.22 for the year ended June 30, 2009. The financial performance of the company showed a turnover of N5.019 billion in 2009, up from N4.5 billion in 2008. Profit after tax rose from N189 million to N429 million in 2008.

Based on the performance, the directors have recommended the dividend. Register of the company will close on January 19, 2010, while the dividend is expected to be paid on February 25, 2010.
While investors in the Nigerian Breweries and Fidson Healthcare Plc will be smiling to the bank to receive their dividends, those in United Nigerian Textiles Plc and Costain (WA) Plc and African Paints Plc are to remain without dividends as the companies have recorded losses in their operations.

For instance, Costain (WA) posted a turnover of N6.274 billion for the year ended March 31, 2009 as against N3.814 billion in 2008. But the construction firm ended with a loss of N615 million compared with a profit of N353 million in 2008.

United Nigerian Textiles recorded a turnover of N6.544 billion for the third quarter ended September 30, 2009, down from N8.8 billion in 2008 and loss of N956 million compared with a loss of N659 million in the corresponding period of 2008.
African Paints Nigeria Plc posted a turnover of N34.91 million for the third quarter ended September 30, 2009 compared with N26.4 million in the corresponding period of 2008. The paint making firm, ended the period with a loss of N32 million as against a loss of N36.6 million in 2008.

By Goddy Egene and Eromosele Abiodun

THISDAY January 18, 2010