Berger Paints Nigeria (BPN) Plc yesterday assured shareholders of better returns as shareholders approved the payment of N116 million as cash dividends for the 2020 business year.
Shareholders approved distribution of a dividend per share of 40 kobo, an increase of 60 per cent above 25 kobo paid in 2019.
Addressing the shareholders at the company’s 61st virtual Annual General Meeting held, Chairman, Berger Paints Nigeria, Mr Abi Ayida, explained that despite the headwinds such as impacts of COVID-19 pandemic on corporate activities and macroeconomic vagaries, revenue was up by 7.1 per cent from N3.58 billion in 2019 to N3.84 billion in 2020.
According to him, the proposed dividend of 40 kobo per share for the year demonstrates the company’s unflinching commitment to the promises to shareholders.
“Our revenue was driven by volume growth despite the shutdown In economic activities, disruptions and environmental unrest and the loss of sales for about seven weeks in the year. Free cash flow remained strong at N529 million, representing 34 per cent from the preceding year.
“However, a proposed dividend of 40 kobo per the year demonstrates the company’s unflinching commitment to the promises to shareholders. We are very conversant with the strategic threats being faced by manufacturers in Nigeria but we are equally positioned to take advantage of the opportunities,” Ayida said.
He explained that as an indication of corporate foresight, the board had invested in technology for optimum performance prior to the outbreak of the pandemic, which proved critical for business continuity as meetings were held seamlessly despite the crises.
He commended the directors that retired for their sterling contributions to company’s growth and urged the new board members to sustain the trajectory of innovative advice to enhance the company’s global competitiveness.
Managing Director, Berger Paints Nigeria Plc, Mr Anjan Sircar said the company leveraged strategic focus on the sales of premium products and inclusion of new business partners to sustain its operations in the face of dwindling raw materials due to forex scarcity in the review period. He however assured the shareholders of better days ahead.
“While we have not fully overcome the impact of the pandemic. We are positive that the worst is behind us and we are positioned to maximise the opportunities for growth, not only in the market but other markets facilitated by the African Continental Free Trade Area ( AfCFTA).
“Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering our people and making business easier. We enter 2021 well positioned to further maximize opportunities technology provides for our business. We remain resilient,” Sircar said.
Many shareholders also commended the dividend and assured the company of continued relationship.
National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare commended the board for declaring dividend of 40 kobo per share despite the inclement operating environment.
She noted that the company made comprehensive disclosure in its annual report as it will enable investors to make informed investment decision.
Source: The Nation
