Chairman of UACN, Senator Udoma Udo Udoma
By Chinazor Megbolu
Shareholders of UAC of Nigeria Plc (UACN) have approved the N2.4 billion total dividend that was recommended by the Board of Directors of the conglomerate.
The total dividend, which was approved at the company’s 2011 Annual General Meeting (AGM) in Lagos, translated to a dividend of N1.50 kobo per ordinary share.
President, Renaissance Shareholders Association, Mr. Olufemi Timothy, commended the management for the performance recorded in the financial year under review.
Its financial statement showed that its operational profit increased by 22 per cent to N8.6 billion in the year ended December 31, 2011, while its profit after tax stood at N10.2 billion. Similarly, its profit before tax climbed to N12.98 billion as against N7.1 billion recorded in 2010.
The Chairman of UACN, Senator Udoma Udo Udoma, attributed the positive results to the growth in recorded by Grand Cereals, UAC Foods Limited and UAC Property Development Company and some of its subsidiaries.
“Due to rising raw material and operational costs and the inability to recover such cost through price increases, the business had challenges in margins. We, however, undertook operational reviews in our food businesses to improve efficiencies, “he said.
Udoma added that the profit on sale of shares of N5.7 billion represented a disposal 49 per cent of the company’s 100 per cent stake in UAC Foods to Tiger Brands Limited- a South African firm as approved by the shareholders during extra ordinary general meeting in 2010.
He said the company would also build on its existing businesses in order to make related acquisitions to deliver growth. He added that despite the setback suffered as a result of the effects of the global economic crisis, there are expectations that the Nigeria would sustain its Gross Domestic Product (GDP) growth.
“Notwithstanding these constraints, we expect the Nigerian economy to sustain its continued GDP growth. Our company’s strategy is to target top-line growth that significantly exceeds Nigeria’s annual GDP growth rate.
“UAC Foods Limited, our strategic partnership with Tiger Brands Limited of South Africa, will complete the various operational reviews launched in 2011 and is poised to expand its market and refresh product offerings.
“We have restructured our restaurant business to a full-franchise model and are developing new competencies required to effectively manage the model. Although the model will result in reduced turnover from the business unit in the next few years, as we will only receive franchise royalty as our revenue, we expect improved operational returns,” he added.