Berger Paints shareholders applaud good returns, market leadership

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12 months ago

From left, Independent Non-Executive Director, Berger Paints Nigeria Plc, Erejuwa Gbadebo; Non-Executive Director, Kunle Olowokande; Managing Director and Chief Executive Officer, Alaba Fagun; Chairman, Abi Ayida; Company Secretary and Legal Adviser, Omolara Bello; Independent Non-Executive Director, Aisha Umar, Non-Executive Director, Raj Mangtani and Non-Executive Director, Dr Oghechi Iheanacho, during the 64th Annual General Meeting (AGM) of Berger Paints in Lagos.

SHAREHOLDERS of Berger Paints Nigeria Plc have commended the management for its resourcefulness in improving the company’s fortunes in the last financial year and for paying competitive dividends and assuring them of higher shareholder value.

Commenting on the company’s performance at its 64th Annual General Meeting (AGM) in Lagos, the National Coordinator, Pragmatic Shareholders Association, Mrs Adebisi Bakare, stated that the 2023 performance was a significant improvement on the previous year against the background of headwinds such as high energy cost, soaring inflation rate and exchange rate, in addition to low purchasing power of consumers.

According to her, Berger Paints was able to maintain its leadership position in the paints manufacturing industry in Nigeria.

Also, Chairman Emeritus, Independent Shareholders’ Solidarity Association of Nigeria (ISSAN), Sunny Nwosu, expressed satisfaction with the company’s performance and commended its board and management for the balanced gender representation in their compositions.

Despite the inclement operating environment, Berger Paints declared a dividend of N232 million for the 2023 financial year, up from N203 million paid in 2022, which was ratified by the shareholders and amounts to a dividend of N.80 kobo per share for its shareholders.

The dividend brings the final dividend for the review period to N1.00 per share. In the period under review also, the company’s share price jumped to 116 percent capital appreciation, from N6 in December 2022 to N13 by December 2023.

Other performance indicators of Berger Paints for the period showed impressive returns as profit after tax recorded a significant surge of 125 percent, from N208 million in 2022 to N445 million in 2023. This was realised from total earnings of N7.9 billion in the period under review, an increase by 25 percent from N6.3 billion in the previous financial year.

The Chairman, Berger Paints, Mr Abi Ayida, explained that adherence to many sustainability initiatives enhanced the company’s performance in the review period. He attributed the stellar performance to five key pillars: product innovation, market expansion, operational efficiency, customer experience and strategic partnerships.

“Currently, Berger Paints operates within the premium and super premium segments of the market,” Ayida said.

Corroborating him, the Managing Director, Mrs Alaba Fagun, stated that the performance was a testament to synergistic collaboration between the workers and the company’s strategic vision.

According to her, the management deployed a harmonious blend of financial acumen, operational resilience and strategic foresight while looking forward to building upon these accomplishments, fostering sustainable growth and delivering enduring value to our esteemed shareholders.

“Beyond the quantitative achievements, our success story in 2023 was intricately woven with qualitative advancements, which is a testament to the synergistic collaboration between our adept workforce and the strategic vision set forth by the leadership,” said Fagun.

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