Giant manufacturers and conglomerates continued the release of their 2009 audited results to investors through the Nigerian Stock Exchange (NSE), last week, with Nigerian Breweries being the latest.

As expected, going by the quality of third quarter results released by the various companies, the returns have been a mixed bag, going by the figures released so far, by manufacturers- Nigerian Breweries, Nestle Nigeria, Unilever Nigeria and Lafarge Cement WAPCO Nigeria.

Expectations are that most players in the Nigerian banking sub-sector, according some analysts may not return to profit and therefore have any distributable income until after three years. This, just as in the manufacturers and services industry, may not turn in wonderful figures arising from the biting credit crunch and other macroeconomic variables- including dilapidated infrastructure especially poor power supply and bad road network that has conspired to balloon their operating cost, while reducing profit margins.

For instance, Nigerian Breweries submitted its audited 2009 result showing that while sales revenue rose by N18.745 billion or 12.88 per cent, profit attributable to shareholders could only notch 8.60 per cent.

According to the result, Nigerian drank various alcoholic and malt beverage products of the company worth N164.206 billion, as against the previous year's N145.461 billion, out of which profit before tax stood at N41.399 billion, representing a rise of about 10.34 per cent from N37.519 billion.

Net profit for the period rose from N25.7 billion in the corresponding period of 2008 to N27.91 billion last year, representing earnings per share of 369 kobo, up from 339 kobo, a year earlier. The board of NB has proposed a final dividend of 89 kobo per share, in addition to interim dividend per share of 280 kobo each paid out on June 26, 2009, bringing total payout for the year to 369 kobo, up from 340 kobo each paid out at the end of 2008.

The register of members for the final dividend closed last weekend, March 12, while payment is slated for May 20, a day after shareholders are billed to approve the proposal as an annual general meeting in Lagos.

The audited result for food beverages and confectioneries' major- Nestle Nigeria was released earlier, indicating that percentage growth in sales revenue for the year ended December 31, 2009, was twice faster than profit before and after tax.

Turnover rose by about N16.575 billion or 32.03 per cent from the previous year's N51.742 billion to N68.317 billion, out of which profit before tax could only rise by 16.09 per cent to N13.783 billion, compared with the preceding year's N11.862 billion.

Profit attributable to shareholders for the period improved by N1.452 billion or 17.43 per cent to N9.783 billion, from previous year's N8.331 billion. The net profit represents earnings per share of about N14.81, as against N12.61 in the corresponding period of 2008. Net profit margin for the period (representing how much of every Naira of revenue from sales is converted to profit) stood at 14.32 per cent, a decline when compared with the 16.10 per cent reported in the preceding full year.

The company has scheduled to hold its annual general meeting on Tuesday April 27, while payment is billed for the following day- April 28, 2010.

For the period, the board has proposed a final dividend of N10.60 per share. It earlier offered an interim dividend of 195 kobo, bringing cumulative dividend for the year to N12.55.

This was however not the same case with giant building materials maker- Lafarge Cement WAPCO Nigeria, which remained on the receiving end of investors' disgust, after the board, understandably offered a dividend of 10 kobo per share, in what many say is to ensure the company pays out something rather than allowing shareholders to go empty. At the end of 2008, the directors distributed 60 kobo per share as dividend.

According to the result, sales revenue rose by N2.315 billion or 5.35 per cent to N45.589 billion from previous year's N43.273 billion, while profit before tax at N8.955 billion, suffered a decline of about N3.813 billion or 29.86 from previous year's N12.768 billion. There was an extraordinary item of about N281.612 million, as against the earlier N264.523 million, following which after tax profit stood at N5.055 billion, down by N6.197 billion or 55.07 per cent, compared with N11.252 billion in the corresponding full year of 2008.

The net profit represents earnings per share of 168 kobo, compared with about 374 kobo a year earlier. The decision to pay just 10 kobo as dividend many not be unconnected with the company's plan to fund its ongoing ambitious expansion project codenamed "Lakatabu," through a mix of debt and internal cash flow accruals.

The Euro 354 million (about N54.1 billion) needed to finance the project, officials told investors last year, is being sourced through multi-currency medium term facilities, with the tranche "A" being 225 million Euro or N33.75 billion or the debt portion of the fund (to be disbursed in US$) while the Tranche "B" Naira equivalent is to be disbursed in Naira. There is however a provision for a third tranche of Euro 85 million (Naira equivalent and disbursed in Naira), which "will only be drawn to repay Tranche A in whole or in part (such that at no point in time will the aggregate amount of funds drawn and outstanding under both tranch A and C ever exceed Euro 85 million), to the extent Lafarge WAPCO determines that it is advantageous to do so as a result of exchange rate movements.

The project, according to the presentations, is expected to add 2.2 million metric tonnes to the company's existing two million metric tonnes per annum.

The debt portion would be sourced in two tranches of: a three-year (average life) Euro 85 million to be raised in US Dollars; and another a three-year (average life) Euro 140 million Naira tranche, with a margin of 125 basis points above the NIBOR (Nigeria Inter-Bank Offer Rate).

Meanwhile, the board of Unilever Nigeria, a fortnight ago, proposed a dividend of 107 kobo, even as details of its audited result for the period to December 2009, is being expected. The proposed dividend represents another significant improvement in the company's financial health, being the third consecutive yearly growth. The latest proposed dividend represents an increase of about 57.35 per cent over the 68 kobo paid for 2008. In 2007, the directors paid only 28 kobo.