UAC pays shareholders N1.8 billion

UAC of Nigeria Plc (UAC) has increased shareholders returns on investment with a total dividend payout of N1.8 billion, despite acclaimed harsh operating environment, even as the company unveiled new strategic initiatives to boost operations in the current financial year.

At UAC’s yearly general meeting in Lagos, its Chairman, Dan Agbor, said: “Despite the 2018 performance, the board is recommending for your approval a dividend of N1,844,029,440 in respect of the 2018 financial year, which translates to a gross dividend of 64 kobo per ordinary share of 50 Kobo.”

He disclosed that the company was currently working on a plan to stabilise its real estate business- UACN Property Development Company (UPDC), which constitutes a drain on the group’s performance.

“We are encouraged by the initiatives implemented thus far but recognize that a significant amount of work lies ahead.

“It is important to mention that one of the key elements of the strategic plan of your management is for the Company to operate as a much simpler and leaner holding company, with the main focus being on the subsidiary companies.

“We are strengthening and empowering the management and Boards of subsidiary companies to drive value creation and increasing their accountability for delivering ambitious plans. Towards this end, we are carrying out a comprehensive review of our organizational structure to ensure increased autonomy and effectiveness of operating subsidiary companies,” he said.

He assured the shareholders that the Company’s contributions to the industrialization and economic, political and social development of the country in the last 140 years of UAC’s existence would be sustained.

Agbor noted that even though 2018 was a challenging year for the business, the Company recorded growth in its packaged foods, logistics, paints and quick service restaurant businesses.

Commending the shareholders for their continued support and contributions to the growth of the Company, Agbor stated that the Animal Feeds and other Edibles businesses were negatively impacted last year due to heightened competition with attendant pressure on prices and margins.

He said that the Company was working tirelessly to deliver improved performance.

On the outlook of the business, the Chairman explained that UAC has “embarked on an aggressive talent acquisition drive, placing priority on the executive management teams at our subsidiaries.”

Agbor further noted that the appointment of Mr. Folasope Aiyesimoju as the Group Managing Director of the company with effect from April 1, 2019, “signifies the company’s ambitions and the board’s determination to accelerate the process of change within the UAC group.”