Shareholders of UAC Nigeria Plc have endorsed the recommendation of the Board of Directors for a dividend of N644 million for the financial year 2023.

The shareholders gave the approval at the company’s Annual General Meeting (AGM) held in Lagos, recently.

The dividend was ratified by the shareholders and amounted to a dividend of 22 kobo per share for its shareholders.

Addressing shareholders at the AGM, the Board Chairman, Mr Dan Agbor, said the dividend payout was reflective of the group’s strategy of conserving capital for strategic investment opportunities across its businesses.

Agbor noted that the group’s primary focus in 2023 was to deliver profit, despite the difficult operating backdrop.

He said the company delivered a N12.3 billion profit before tax in 2023 compared to a N4.4 billion loss before tax in 2022.

According to him, the performance was a result of revenue growth across all the group’s operating companies, improved profitability of its associate companies (UPDC Plc and MDS Logistics Limited), as well as one-off gains from asset divestments and our treasury portfolio.

“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, Mr Fola Aiyesimoju, speaking on the financial performance of the group, said UAC Group recorded consolidated revenue of N121 billion in 2023, 10 percent higher than the N110 billion recorded in 2022.

According to him, performance in the first half of the year was characterised 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 percent higher year on year reflective of the impact of inflation on our costs as well as the effect of the Naira depreciation on expenses pegged to foreign currencies.