Shareholders of UAC Nigeria Plc have endorsed the Board of Directors’ recommendation for a dividend payout of N644 million for the financial year 2023. The approval was given at the company’s Annual General Meeting (AGM) held on Thursday in Lagos.
The ratified dividend amounts to 22 kobos per share, maintaining the same level as the 22 kobos per share declared for the 2022 financial year.
Addressing shareholders at the AGM, Board Chairman Mr. Dan Agbor highlighted that the dividend payout reflects the group’s strategy of conserving capital for strategic investment opportunities across its businesses. Agbor emphasized that despite a challenging operating environment, the group’s primary focus in 2023 was to deliver profit.
The company reported a significant turnaround with a profit before tax of N12.3 billion in 2023, compared to a loss before tax of N4.4 billion in 2022. This performance was driven by revenue growth across all operating companies, improved profitability of associate companies UPDC Plc and MDS Logistics Limited, and one-off gains from asset divestments and the treasury portfolio.
Agbor elaborated on key initiatives that contributed to the group’s success:
- Asset Divestment: Unlocking N9.2 billion through the sale of low-yielding non-core assets to strengthen the Group’s liquidity, a crucial step given the current economic conditions.
- Strategic Merger: Completion of the merger and integration of Spring Waters Nigeria Limited (producer of SWAN Water) with its parent company, UAC Foods Limited. This streamlined the structure of the Packaged Food and Beverages Segment, enabling both businesses to operate as a single entity.
Group Managing Director Mr. Fola Aiyesimoju provided insights into the group’s financial performance, reporting consolidated revenue of N121 billion in 2023, a 10% increase from the N110 billion recorded in 2022. He noted that the first half of the year was marked by slower topline growth due to limited trading during the general elections and cash scarcity that affected consumer demand. However, the second half saw stronger performance across all operating segments, with double-digit growth in revenue, gross profit, and operating profit.
Mr. Aiyesimoju expressed confidence in the group’s future, stating that the strategic measures implemented have positioned UAC Nigeria Plc for sustained growth and profitability. The company’s ability to adapt and thrive despite economic challenges underscores its resilience and commitment to delivering value to shareholders.
