Shareholders of Eterna Plc Tuesday hailed its board and management for moving it from the brink of collapse to profitability.
The shareholders’ who gave the commendation at the company’s annual general meeting (AGM) in Lagos, noted that the improvement in the company’s bottom-line was a testimony of the management’s drive to ensure adequate reward for stakeholders.
President of Independent Shareholders Association of Nigeria (ISAN) Mr. Sunny Nwosu, stated that the reduction in interest cost, which had affected the company before now meant that shareholders would be adequately rewarded in the years ahead.
According to him, “We are delighted with what you have achieved so far and we are sure that the years ahead will be rewarding for shareholders. We have moved from a loss position to profitability that is a sign that something good is ahead for our company. We urge you to continue the good work so that you can reward shareholders patience in the last few years.”
In his response, Chairman of the company, Mr. Fola Adeola, promised shareholders that the company’s management and board were doing what they could to ensure that the company was well-positioned to be able to remain in business and reward shareholders.
He added that the board was pleased with the performance of the company in the year under review adding that the performance turned out to be considerably more robust than was expected.
He said: “There is no doubt that we were confronted with real challenges in the course of the year. However, we became more innovative in the face of those challenges, in a bid to ensure that shareholder value was enhanced.
“We achieved consolidated operating revenues of N41 billion representing overall percentage growth of 190 per cent compared with the N14.1 billion operating revenues achieved in 2010 financial year.
“Our gross profit of N2.4 billion showed a growth of 57 per cent compared to the gross profit of N1.5 billion achieved in 2010. We have significantly reduced interest expenses on loans by over 60 per cent. The reduction in interest cost, which has adversely affected profitability in the previous years, is directly attributable to the success recorded from substantial payments, as well as restructuring of existing loans into better repayment and pricing terms.”
The company, he added, had invested in local production of lubricants to further drive up its revenue and protect the future of the company.