Shareholders of the Nigerian Bag Manufacturing Company Plc (BAGCO) have approved the sum of N870.1 million as dividend for its 2012 financial year. This translates to 14 kobo per ordinary share of 50 kobo.
Speaking in Abuja at the company's 47th Annual General Meeting (AGM, Chairman, Nigerian Bag Manufacturing Company Plc, Mr. John Coumantaros, said profit after tax (PAT) rose by 33.3 per cent to N1.37 billion from N1.28 billion in 2011.
He said improved internal operating efficiency, product mix changes and capacity expansion helped the group turnover to rise by 30 per cent to N24.22 billion in the year under review, compared with N18.58 billion in 2011.
The chairman said the company was able to deliver a strong performance despite the difficult and challenging operating environment.
He said: "During the year, we continued with our strategic business expansion plans with the aim of meeting growing product demand and sustaining our leadership position in the Nigerian woven polypropylene sack industry."
He said the company procured and installed new conversion lines, new Alpha 61looms and printing lines among others in a move to increase production capacity to Top Hemmed 50kg sugar bags as well cater for the growing overseas demand for block bottom bags.
He said: "We will continue to invest in new equipment, new processes and improved skills of our employees. This will enable us preserve our competitive advantage and maintain our leading position in the market place."
However, the company’s profit before tax stood at N2.02 billion.
He said its subsidiaries including Northern Bag Manufacturing Company Limited (BAGCO North) as well as BAGCO Morpack Nigeria Limited, all made significant progress in the year under review.
He said: "I will like to reassure shareholders that as the global economy continue a gradual process of recovery; our company's strong fundamentals provide us with a good basis to be optimistic that our efforts will result in enhanced growth and profitability."