Shareholders of Friesland Campina Nigeria Plc has approved a final dividend of N7.70 kobo that was proposed by the board of directors for the financial year ended December 31, 2016.
At the Company’s Annual General Meeting in Lagos, shareholders approved 2016 dividend payout, which represented 75 per cent of the company’s profit after tax, which is in line with its dividend policy to shareholders.
In approving the dividend payout, shareholders acknowledged the efforts of the Board of Directors and Management for their consistent performance despite the decline in economic activities and increased pressure on the on the naira.
In his response, Chairman of the company, Jacob Moyo Ajekigbe, said the dividend paid in any particular year depends on the financial performance of the company and the level of its cash and bank balances.
He pointed out that the company had already paid an interim dividend of N2.95 kobo, which brings the total dividend for the year under review to N10.65 kobo.
Commenting on the operating results and performance of the company listed on the National Association of Securities Dealers (NASD) Over The Counter (OTC) platform, Ajekigbe noted that the company’s commercial and financial performance remained satisfactory in spite of the harsh business environment.
“Though 2016 was a challenging year due to the prevailing economic climate, which impacted on the cost of production, raw and packaging materials sourcing; the company recorded remarkable achievements in operational efficiencies, cost management and improved productivity across the supply chain systems with new investments in human capital development and facility improvements,” he said.
According to him turnover increased by 2.5 per cent from N120.72 billion in 2015 to N123.75 billion in 2016. Profit before tax was up by 7.3 per cent from N18.60 billion to N19.96 billion. Profit after tax stood at N13.862 billion which is slightly above N13,346 billion that was posted same period in 2015.
On the company outlook for 2017 financial year, Ajekigbe explained to shareholders that although government are expected to adopt a number of measures such as increased capital expenditure and increased funding of the foreign exchange market to pull the economy out of recession.
But he expressed concern that the Fast Moving Consumers Goods (FMCG) market would continue to come under pressure. “Significantly foreign exchange constraints, high inflation, milk price increase and low consumer purchasing power are likely to negatively impact the company’s sales and profitability in 2017,” he added.
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