UAC gets shareholders approval to pay N2.56bn worth of dividend

Shareholders of UAC of Nigeria plc (UAC) Wednesday at its annual general meeting (AGM) in Lagos approved the company’s payment of dividends is valued at N2.56 billion or N1.60 per ordinary share of fifty kobo each. Additionally, the shareholders at the meeting approved a bonus of 1 for every 5 ordinary shares.

UAC of Nigeria plc recorded a 49 per cent rise in operating profit to N11.5 billion for the financial year 2012 as Profit Before Taxation rose to N10.7 billion, from N6.96 billion in 2011. Profit After Taxation stood at N7.1 billion.

Udoma U. Udoma, chairman, UAC of Nigeria plc said at the annual general meeting that: “In spite of the constraints of the business environment in 2012, our company continued to sustain its performance driven by our resolve and capacity to manage the dynamics in our operating environment. This notwithstanding, our Company recorded a commendable top-line growth of 17percent from N59.6 billion in 2011 to N69.6 billion in 2012 resulting largely from the volume growth achieved in Grand Cereals, UAC Foods Limited and UACN Property Development Company Plc (UPDC).”

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He noted: “Due to rising raw material and other operational costs and the inability to recover such costs through price increases, the business had challenges in margins. We, however, undertook operational reviews in our food businesses to improve efficiencies. Operational Profit grew by 49percent to N11.5 billion in the year ended 31st December 2012. Profit Before Taxation was N10.7 billion up from N6.96 billion in 2011 while Profit After Taxation stood at N7.1 billion.”

Udoma, who said the Company has restructured the two remaining divisions of the company – MDS Logistics and UAC Restaurants – into limited liability companies, noted that UAC has recently entered into a partnership with Imperial Mobility BV under which it bought 49percent of UAC’s 100percent equity in MDS Logistics. The Company is currently working on the terms of agreement with a potential strategic investor in UAC Restaurants Limited.

He provided insights into the Company’s growth drive, saying: “We have also made significant progress in our growth drive into adjacent categories with the conclusion of our acquisition of majority stakes in Livestock Feeds plc. Discussions are progressing with Portland Paints and Products plc. These acquisitions are in line with our strategy of building a portfolio of brands and businesses with strong growth potentials in the Nigerian economy.”

Reflecting on the prospects for the business, Udoma said: “We will over the next three years focus on consolidating our Holding Company architecture, which is aimed at delivering empowered and capable subsidiaries, to assure sustained shareholder value enhancement. Our company will continue to sustain growth in all our existing and acquired businesses despite the environmental constraints and in line with our mission to grow our topline significantly above Nigeria’s annual GDP growth rate.”