67
Operational Review
GROUP CHIEF FINANCIAL OFFICER’S REVIEW
Current liabilities increased by ₦144.2B mainly due
to exchange losses arising on restating liabilities
denominated in foreign currency.
The Group generated cash of ₦243.9B before changes
in working capital. After a ₦35.8B change in working
capital and tax payments of ₦1.1B, the net cash flow
from operations was ₦278.6B. Financing outflows
of ₦93.9B (2015: ₦117.5B) reflected loans taken of
₦343.1B, loans repaid of ₦262.2B, interest paid of
₦39.0B and a dividend payment of ₦136.3B. Cash and
cash equivalents (net of bank overdrafts used for cash
management purposes) increased from ₦37.8B at the
end of 2015 to ₦109.4B at 31st December 2016.
Capital Expenditure by Region
Nigeria Pan-Africa
₦m
Nigeria
Senegal
Cameroon
Congo
Ghana
Cote d’Ivoire
Sierra Leone
South Africa
Ethiopia
Tanzania
Zambia
Other
Total
62,895
-
-
-
-
-
-
-
-
-
-
-
62,895
Movement in net debt
As at 1st January 2016
Cash from operations before working capital changes
Change in working capital
Income tax paid
Additions to fixed assets
Non-current prepayments & suppliers’ credit
Other investing activities
Net interest
Net loans obtained (repaid)
Dividend paid
Other cash and non-cash movements (net)
As at 31 December, 2016
₦m
4,653
6,106
Total
₦m
- 62,895
4,653
6,106
23,455 23,455
19,308 19,308
670
670
1,896
1,050
1,896
1,050
10,737 10,737
1,292 1,292
4,090 4,090
16 16
73,273 136,168
Cash
₦m
40,792
243,865
35,857
(1,128)
(136,168)
17,327
(745)
(36,367)
84,176
(136,324)
4,408
115,693
(84,176)
(27,320)
(356,465)
Debt
₦m
(244,969)
Net debt
₦m
(204,177)
243,865
35,857
(1,128)
(136,168)
17,327
(745)
(36,367)
-
(136,324)
(22,912)
240,772
Annual Report 2016
67
Brian Egan
Group Chief Financial Officer
Capital expenditure was mainly to improve our energy
efficiency in Nigeria, for expenditure on plants under
construction in the various African countries and for
growth.
Recommended dividend
On 24th February 2017, the Directors recommended
an increased dividend of ₦8.5 per share (2015: ₦8.0)
for approval at the Annual General Meeting scheduled
for 24th May 2017. This will result in a total dividend
payment of ₦144.8B. The dividend represents a payout
ratio of 74.9%.
Going Concern
The Directors continue to apply the Going Concern
principle in the preparation of the Financial Statements.
After
considering
the
liquidity
position
and
the
availability of resources, the Directors concluded that
there are no significant threats to the Group’s Going
Concern capabilities. The Group generates sufficient
cash flows to fund its operations. Borrowings are
mainly to fund the expansion projects in various
African countries as well as improve production and
distribution efficiency in our core Nigeria operations.
68
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