UAC Nigeria plans N1.9 billion lower dividend as annual profit drops 33%

UAC of Nigeria Plc (UACN) said it would pay shareholders a dividend per share of 0.65 naira equivalent to a cumulative payment of 1.9 billion naira for the financial year 2021, according to a statement issued by the company’s board seen on Thursday .

The proposed dividend is 54.2% lower than the cash reward shareholders received last year, when in addition to a dividend of N0.65, the company paid a special dividend of N0, 55 N, i.e. 1.20 N.

Shareholder consent at the next annual general meeting will pave the way for the dividend to be paid electronically on June 23.

“The Board of Directors has approved and also recommends to shareholders for their approval at the next annual general meeting, a right of election for shareholders eligible to receive new ordinary shares of the company in lieu of the cash dividend”, indicates the document.

“The choice must be made no later than June 14, 2022.

According to its audited results report, UACN’s revenue increased by a quarter to N101.4 billion, driven by increased revenue from animal feed and other edible products, which contributed more than 60% of total sales for the period, and an increase in revenue. from packaged foods and beverages.

A 11% jump in operating costs and an increase almost tripled Financial expensesthe cost incurred by the company to borrow money, had a disastrous impact on the profit before tax, which fell by 19.2% to 4.1 billion naira..

Fola Aiyesimoju, General Manager UACN

Profit after tax was N2.6 billion, a third lower than the figure posted a year ago.

“We are encouraged by the strong revenue growth achieved across our operating platforms and improved efficiency, as evidenced by our operating expense to sales ratio,” said CEO Fola Aiyesimoju.

“The continued escalation in raw material costs remains a concern and has resulted in a deterioration in our gross profit margin which we have not fully offset by our efficiency gains.”

NIRSAL ANNOUNCEMENT

Originally a trading company when it set foot in Nigeria in 1879 as the United African Company, UACN became a conglomerate with operations spanning manufacturing, storage and logistics, services, real estate and agriculture.

A separately listed subsidiary, Chemical and Allied Products Plc, merged with Portland Paints last year.


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