Shareholders of UAC Nigeria Plc have approved the Board of Directors’ recommendation for a N644 million dividend for the financial year 2023.
The approval came during the company’s Annual General Meeting (AGM) held in Lagos.
This dividend translates to 22 kobos per share, matching the dividend declared for the 2022 financial year.
Addressing shareholders at the AGM, Mr Dan Agbor, the Board Chairman, said that the dividend payout showed UAC Nigeria Plc’s strategy of preserving capital for strategic investments across its businesses.
Agbor highlighted that despite the challenging operating environment in 2023, the company achieved a significant turnaround, reporting a profit before tax of N12.3 billion compared to a loss before tax of N4.4 billion in 2022.
He attributed this commendable performance to revenue growth across all the group’s operating companies, enhanced profitability of its associate companies such as UPDC Plc. and MDS Logistics Limited, and gains from asset divestments and treasury operations.
“We also progressed other important initiatives in line with our strategy. The two most impactful achievements were: Unlocking N9.2 billion through the sale of low-yielding non-core assets to strengthen the Group’s liquidity, is a crucial step given the current economic conditions.
Completion of the merger and integration of Spring Waters Nigeria Limited (producer of SWAN Water) with its parent company, UAC Foods Limited, which streamlined the structure of our Packaged Food and Beverages Segment such that both businesses now operate as a single entity,” he said.
Group Managing Director, Fola Aiyesimoju, speaking on the financial performance of the group, said UAC Group recorded consolidated revenue of N121 billion in 2023, 10% higher than the N110 billion recorded in 2022.
According to him, performance in the first half of the year was characterized by slower topline growth, which was impacted by limited trading during the general elections and scarcity of cash which affected consumer demand.
He noted that in the second half of the year, the group recorded stronger performance across all operating segments and delivered double-digit growth in revenue, gross profit, and operating profit.
“Operating profit was N9.1 billion in 2023, compared to an operating loss of N2.4 billion in 2022.
The improvement in profitability is attributable to revenue growth across our businesses, gross profit margin expansion, particularly our Animal Feeds and other Edibles segment and our Packaged Food and Beverages segment on account of appropriate pricing as well as deliberate cost-saving initiatives implemented to reduce conversion costs,” he said.
He noted that the group also recorded non-recurring gains from the sale of non-core property assets.
He added operating expenses across the group were 17% higher year on year reflecting the impact of inflation on our costs as well as the effect of the Naira depreciation on expenses pegged to foreign currencies.
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