Unilever shareholders authorise N63bn rights issues, approve N378m dividend

Shareholders of Unilever Nigeria Plc has given nods to the board of directors to raise up to N63 billion by way of Rights Issue, through the issuance of ordinary shares.

At the company’s 92nd Annual General Meeting (AGM) held in Lagos on Thursday, shareholders also approved the sum of N378.3 million dividend payout, that is 10 Kobo per share, representing a 100 per cent increase from the dividend paid in the previous year.

With the shareholders approval to raise Right Issues, Unilever Nigeria Plc’s authorised share capital will increase to five billion naira by the creation of additional 3.9 billion new ordinary shares of 50 Kobo each.

Speaking on the company’s performance for the year ended December 2016, the Chairman of Unilever Nigeria Plc, Nnaemeka Achebe, said despite the depressed economic conditions, the results showed sustained growth and resilience, noting that the company increased its turnover by 17.8 per cent to N69.8 billion, just as profit after tax increased significantly by 158 per cent to N3.07 billion for the year ended December 31, 2016

He noted that the increase in the company’s cost of sales by 29.6 per cent 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.”

He, however, assured shareholders that the company remained dogged about ensuring sustained and steady growth in its operations to achieve improved returns on investments.

Looking forward, he said the company would continue to focus on “operational intensity and brilliant execution basics to navigate the twist and turns within our operating environment and consolidate on the gains of 2016 to ensure we remain consistent in realising our growth ambitions in a sustainable way.”