Shareholders of Unilever approve N63bn Rights Issue, N378m dividend at 92nd AGM
Unilever Nigeria Plc held its 92nd Annual General Meeting (AGM) in Lagos on Thursday where shareholders approved a N63 billion rights issue, a N378 million dividend and received the financial accounts, for the financial year ended December 2016.
With the approval, Unilever will through the issuance of ordinary shares, raise funds of up to N63 billion by way of Rights Issue.
The company’s authorized share capital will thus increase to N5 billion by the creation of additional N3.9 billion new ordinary shares of 50 Kobo each.
The approval of a N378.3 million dividend which translates to 10 Kobo per share, represents a 100 per cent increase from the dividend paid in the previous year.
In the year ended 2016, the Company increased its revenue by 17.8 percent from N59 billion recorded in 2015 to N69 billion while Profit After Tax (PAT)for 2016 increased 157 percent to N3.07bn from N1.19bn reported for 2015.
Speaking on the company’s performance for the year ended December 2016, the Chairman of Unilever Nigeria Plc, His Majesty Nnaemeka Achebe, the Obi of Onitsha said that Unilever Nigeria Plc. has once again demonstrated business resilience under very difficult circumstances.
He asserted that the company’s performance shows its commitment to grant shareholders returns on their investments.
According to him, “The Company’s performance shows sustained growth and resilience even under depressed economic conditions.
“Although Unilever Nigeria has not been insulated from the tough economic environment, we have remained focused on our short and long term growth ambitions with strong emphasis on operational intensity, cost efficiency, growing market share across key categories as well as reinvesting behind our iconic brands”.
He noted that the increase in the company’s cost of sales by 29.6 percent from N38 billion in 2015 to N49 billion in 2016 was a reflection of rising cost, especially raw material costs that were “significantly exposed to foreign currency volatility.”
Speaking further, Achebe said “even in this period of economic downturn, Unilever Plc. is dogged about ensuring sustained and steady growth in the company’s operations to achieve improved returns on investments. We are more resolute than ever to continue to forge ahead despite the business operating environment”.
“As a company, we will continue to appreciate the resilience and unwavering commitment of all our stakeholders; shareholders, dynamic employees, loyal consumers, dedicated suppliers and other business partners for their unflinching support through these challenging times. We look forward to a better 2017 for our brands and our great company which you are all an important part of”.
“In line with the company’s priority, Unilever remains committed to driving returns on investments to shareholders. However, our company recognizes that these are unusual times and prudence demands that we should continue to plough back into the business in the short term in order to secure a sustainable future” Achebe said.
