The Nation Newspaper

Tag: dividend payout

  • Nahco increases dividend payout to N406m

    The Nigerian Aviation Handling Company Plc (Nahco) Board of Directors has increased dividend payout to shareholders by 13.6 per cent to N406 million. Shareholders of the aviation handling company will receive a dividend per share of 25 kobo for the 2017 business year as against 22 kobo paid the previous year.

    Key extracts of Nahco‘s audited report and accounts for the year ended December 31, 2017 showed that the company improved its margins, despite a lull in the top-line. Turnover stood at N7.926 billion in 2017 compared to N7.956 billion in 2016. Finance cost reduced from N545 million in 2016 to N213 million in 2017. Profit after tax increased by 33.6 per cent to N776 million in 2017 as against N581 million in 2016. Earnings per share improved from 36 kobo to 48 kobo.

    Also, the interim report and accounts of the company for the first quarter ended March 31, 2018 indicated that the company started the 2018 business year on a strong footing. Turnover rose to N2.188 billion in first quarter 2018 as against N1.786 billion in the corresponding period of 2017. Finance income improved from N30.916 million to N64.495 million while the company was able to reduce finance cost to N44.536 million as against N55.715 million in first quarter 2017. With these, profit before tax jumped to N117.405 million in first quarter 2018 compared with N1.026 million in first quarter 2017 while profit after tax leapt from N1.026 million in first quarter 2017 to N97.566 million in first quarter 2018.

    The first quarter 2018 results are the first set of results produced by Mr Idris Yakubu, who took over as the company’s Managing Director  in November 2017.

    Market analysts said with the first quarter 2018 performance,  Yakubu, a former banker, who  has an extensive experience in delivering agreed strategic business imperatives, is bringing his experience to bear on the company to the delight of all stakeholders.

  • Fidson Healthcare increases dividend payout by 300%

    The Board of Directors of Fidson Healthcare Plc has approved a 300 per cent increase in dividend payout for the 2017 business year as the healthcare company grew its net profit by 238 per cent during the year.

    Shareholders will receive a dividend per share of 20 kobo for the 2017 business year, representing an increase of 300 per cent on 5.0 kobo dividend per share paid for the 2016 business year. The company had distributed N75 million as cash dividends to shareholders for the 2016 business year.

    Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2017 showed that turnover grew by 84 per cent N7.6 billion in 2016 to N14 billion in 2017. Cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. Profit before tax rose from N443 million in 2016 to N1.57 billion in 2017. With this, earnings per share increased from 21 kobo in 2016 to 71 kobo in 2017.

    The financial reports showed a 53 per cent increase in total overhead including administrative, selling and distribution expenses, from N3.1 billion in 2016 to N4.7 billion in 2017, which was due to an increase in the marketing and distribution expenses.  Finance cost also increased by 45 per cent from N690 million in 2016 to N1 billion in 2017. The increase in finance cost was mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions. Despite the increase in total cost, the company recorded a 127 per  cent increase in operating profit, which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

    The company management stated that the significant competitive advantage of the company’s World Health Organisation (WHO) Certifiable Plant is already evident after one full calendar year in operation.

    According to the company, products from the new facility as well as volume increase from existing products were largely responsible for its remarkable growth in 2017. The plant increased the company’s factory-based revenue by over 200 per cent in 2017—primarily due to an increase in production volumes and the introduction of new product lines. A portion of its new products are medicines that cater to low income earners, with the quality consumers have come to expect from Fidson, assured.

    “The company is highly focused on extensive brand building as part of its long-term strategy and aims to expand its Intravenous fluid lines in order to meet demands. Her new manufacturing facility, which is compliant with and on course to receive the WHO certification within 12 to 15 months—satisfying the African and global pharmaceuticals markets’ need for compliance and regulation, will drive this expansion,” the company said at the weekend.

    The company noted that it has broadened its products base, stimulate financial growth and increase its capacity to ensure the healthcare demands of Nigerians are adequately met.

    “The maximisation of profitability, as well as growth opportunities, are paramount to Fidson Healthcare Plc,” the company stated.

    At the last annual general meeting in Lagos, shareholders authorised the Fidson Healthcare board of directors to “raise further capital up to N6 billion through an offer either by way of public offering, rights issue, or private and special placement of shares”.

    The meeting also authorised the directors to absorb oversubscription and convert existing loans due to any person from the company towards payment for any rights or shares subscribed for.

    Shareholders also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.

    Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, who spoke at the meeting,  said the additional capital would be used to boost working capital that had been negatively impacted by Naira depreciation.

    He noted that the company’s new factory came on stream at the tail end of the last business year and the company needs additional capital to realise the full potential and utilise the new factory to full capacity.

    He added that the company had through new infusion lines that it recently commissioned, introduced new products into the market.

    “The completion of our new factory and the concentration of production on one site is an important milestone for the company. The board is confident that the company is in a very good position to remain a leading player in the industry,” Ohiwerei said.

     

     

  • May & Baker increases dividend payout by 233.3%

    •Pre-tax profit rises by 75% to N605.6m

    Shareholders of May & Baker Nigeria Plc will receive a 233.3 per cent increase in cash dividend as the healthcare company sustained its improving performance with well-rounded growths in all kep performance indicators in 2017.

    The board of directors of the company has recommended distribution of N196 million as cash dividend for the 2017 business year, representing a dividend per share of 20 kobo. The recommended dividend payout for 2017 represents an increase of 233.3 per cent on the payout for the 2016 business year. May & Baker had distributed N58.8 million as cash dividend for the 2016 business year, with shareholders receiving a dividend per share of 6.0 kobo.

    Key extracts of the audited report and accounts of May & Baker Nigeria for the year ended December 31, 2017 released at the Nigerian Stock Exchange (NSE) showed that the healthcare company recorded significant growths in sales and profitability in 2017.

    The report indicated impressive improvements in the underlying fundamentals of the company as well as the actual earnings figures. The top-down improvements in margins underlined the increasing efficiency of the company’s operations and management’s commitment to cost efficiency.

    Group turnover rose by 10.39 per cent from N8.47 billion in 2016 to N9.35 billion in 2017. Gross profit grew by 29.13 per cent to N3.28 billion in 2017 as against N2.54 billion in 2016. Operating profit jumped by 51.04 per cent from N820.87 million to cross the billion Naira mark to N1.24 billion in 2017. Profit before tax leapt by 75.07 per cent from N345.94 million in 2016 to N605.62 million in 2017. After taxes, net profit stood at N370.87 million in 2017 compared with net loss after tax of N41.09 million recorded in 2016. Shareholders’ funds also rose by 10.3 per cent from N3.01 billion in 2016 to N3.32 billion in 2017.

    All key underlying performance indicators showed considerable improvements, indicating increasing profitability of the company. Gross profit margin improved by more than five percentage points to 35.08 per cent in 2017 compared with 29.99 per cent in 2016. Operating margin-which indicates the profitability of the core operations of the company, rose from 9.69 per cent in 2016 to 13.26 per cent in 2017. Pre-tax profit margin-which underlines the profitability of the company, also increased from 4.09 per cent in 2016 to 6.48 per cent in 2017.

    The management of the company attributed the performance of the company in 2017 to the success of management’s efforts to harness the potential of recent investments and reduce related costs.

    According to the management, despite the macroeconomic challenges, the company’s sales growth has continued to improve considerably above industry average, showing continuing efforts to retain and grow market share.

    Managing Director, May & Baker Nigeria Plc, Mr Nnamdi Okafor said that the improvement in margin validated management’s tight cost control measures and continuing efforts to harness synergies within the group to reduce costs and improve shareholders’ value.

    “Our results show our main focus of satisfying our customer and enhancing our shareholders’ value. Our steady implementation of many growth initiatives are paying off as can be seen in the latest results. We are also happy that the investing public is taking note of these improvements with the performance of our stock as one of the best-performing stocks at the market,”  Okafor said.

    He noted that the recent inauguration of the board of Biovaccines Nigeria Limited has raised the prospects that the subsidiary will soon begin to impact positively on the group performance.

    He pointed out that with the company’s world-class manufacturing facility in Ota, Ogun State, growing into a hub of pharmaceutical manufacturing in West Africa, the imminent commencement of operations by Biovacccines Nigeria Limited will open up a new vast vista of growth for the group.

     

     

     

    Minister of Health, Prof. Isaac Adewole recently inaugurated the board of Biovaccines Nigeria Limited in Abuja.  May & Baker Nigeria holds the majority equity stake of 51 per cent while the government holds 49 per cent equity stake in Biovaccines Nigeria Limited, the company set up for the purpose of May and Baker Nigeria-government partnership.

    The Federal Executive Council had at its sitting on May 31, 2017 ratified a joint venture agreement (JVA) between the Federal Government and May & Baker for the formation of a private company, Biovaccines Nigeria Limited to serve as a special purpose vehicle for the production of vaccines in Nigeria.

     

  • Total retains N5.77b dividend payout despite 46% drop in profit

    Total Nigeria PLC Board of Directors has recommended payment of final dividend of N4.75 billion to shareholders, bringing the total dividend payout for the 2017 business year to N5.77 billion. The company also paid N5.77 billion as cash dividend the previous year.

    The breakdown of the dividend recommendation indicated that shareholders will receive a final dividend of N14 per share. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed a top-down decline in performance. Turnover dropped marginally from N290.95 billion in 2016 to N288.06 billion in 2017.

    Profit before tax dropped by 42 per cent from N20.35 billion in 2016 to N11.8 billion in 2017 while profit after tax declined by 46 per cent from N14.8 billion to N8.02 billion. Earnings per share also declined by 46 per cent from N43.58 in 2016 to N23.62 in 2017. However, the company’s shareholders funds improved by 20 per cent from N23.57 billion to N28.23 billion.

    The company blamed the decline on tough operating environment in 2017 citing economic recession and its consequent contraction of the downstream market.

    The company also stated that scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template, foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates impacted negatively on the company’s performance.

    Total Nigeria Plc Managing Director, Jean-Philippe Torres, said the company is committed to ensuring total customer satisfaction by the creation of quality products and services delivered with a strong commitment to safety and respect for the environment.

    According to him, the overall objective of customer satisfaction drives all the company’s actions and the mutual acknowledgement of them by its partners forms the basis for their business relationships.

    “To sustain this objective and our leadership of the market, our commitment is to build and sustain a work culture firmly rooted in professionalism, respect for employees, internal efficiency and dedicated services,”  Torres said.

     

  • RenCap: FBN Holdings not affected by CBN’s dividend payout rule

    Renaissance Capital (RenCap), a global investment bank, yesterday said FBN Holdings Plc will not be affected by the new dividend payout rule released by the Central Bank of Nigeria (CBN).

    The firm said that lenders operating holding company structures will not be restricted by the policy in dividend payment.

    In a report titled: ‘Nigerian Banks: CBN includes Additional Provision for Dividend Pay-outs’ the firm said: “Restrictions only apply to the banking entity, and not the group as FBN Holdings for instance paid out N0.20 kobo per share (51 per cent dividend pay-out) in fiscal year 2016, despite a Non-Performing Loans (NPLs) ratio of 24.4 per cent. This was paid out of the other non-banking subsidiaries within the group”.

    “Dividends paid to the shareholders are from the subsidiaries of the holding company of which the commercial banking group (FBN) currently retains in its business to build stronger capital buffers to execute strategic initiatives,” The Nation further learnt.

    The RenCap report said the CBN ban on dividend payout is not a new development as it was originally implemented on October 8, 2014 in a circular which stipulated that a bank’s ability to pay dividend is based on NPLs ratio. Banks with NPL ratios above 10 per cent shall not be allowed to pay dividend.

    It said capital position where banks which do not meet the minimum capital adequacy ratio shall not be allowed to pay dividend and Credit Risk Ratings (CRR) which are not typically disclosed by the banks.

    The revised circular however, includes an additional provision that banks that have capital adequacy ratios (CAR) of at least three per cent above the minimum requirement, CRR of “Low” and NPL ratio of more than five per cent but less than 10 per cent, shall have a dividend pay-out ratio of not more than 75 per cent of profit after tax.

    “Based on our conversations with management, we think that a 75 per cent pay -out ratio is highly unlikely.

    We note that the highest dividend pay-out ratio for the banks in our coverage universe in 2017 is 50 per cent (GTBank and Zenith). We expect the banks to take a conservative stance on dividend pay-out in light of IFRS 9 capital requirements, which could reduce CAR by as much as 150 basis points in a worst case scenario,” the report said.

    It said Zenith Plc, United Bank for Africa (UBA) and Fidelity Bank offer attractive dividend yields of seven to eight per cent based on our 2017 fiscal year estimates while GT Bank and Access Bank stand closer to five to six per cent. “Dividends will be declared with the release of fiscal year 2017 numbers, which we expect in about two weeks,” it said.

     

  • Shareholders laud Custodian & Allied over dividend payout

    Shareholders laud Custodian & Allied over dividend payout

    Shareholders of Custodian and Allied Plc have commended the board and management of the company for consistently paying dividend since its listing on the Nigerian Stock Exchange (NSE) 20 years ago.

    The commendation came just as dividend of 18 kobo per share was declared and approved in respect of the results of the 2014 financial year at the company’s 20th Annual General Meeting (AGM) in Lagos.

    The group’s gross revenue crossed N25 billion as its profit before tax rose by 18.73 to N5.1 billion while earnings per share rose by 11 to 70 kobo.

    National President, Shareholders Association of Nigeria (ASN), Shehu Ibrahim, said shareholders were excited that the company had recorded impressive results over the years and had achieved same last year.

    He said the strict regulation adopted by the National Insurance Commission (NAICOM) also assisted in sanitising and ensuring steady growth in the insurance industry.

    A shareholder, Sunday Anono, said he was happy that the board and management declared dividend in its 20 years of existence.

    He said most competitors in the industry have not been able to achieve this feat and urge the board and management to improve on what they delivered in the 2014 operating year.

    A shareholder Akinsanya Sunday urged the board and management to declare bonus next year as the last time it did was 10 years ago.

    Kabiru Sarunmi noted that operating expenses reduced from N17.1 billion in 2013 financial year to N16.5 billion in 2014 financial year.

    He urged the board and management to work at reducing management expenses which increased from N3.5 billion to N4.1 billion in the year under review.

    Chairman of the company, Chief Michael Ade-Ojo said in spite of the tough economy, regulatory problems and myriad of challenges of last year, the company did not only survive but progressed on all fronts during the year.

    He said: “It is very gratifying to note that all of the subsidiaries were profitable during the year. We are happy with our management for an impressive result despite the difficult terrain in which it operated in 2014.

    “In furtherance of our commitment to regular dividend payment to our shareholders, an interim dividend of 6 kobo per share was paid in September, 2014 and your Board of Directors, subject to your approval, have proposed the payment of an additional 12 kobo per share as final dividend thus making a total dividend of 18 kobo per share in respect of the results of the 2014 financial year.”

    Speaking on the company’s future outlook, the chairman said the national economy outlook for this year is challenging with significant headwinds from political and national security issues; inflation, foreign exchange, stock market and external reserve concerns.

    He however said he is confident in the management’s ability to survive and thrive in the difficult terrain.

  • Access Bank’s shareholders laud N13.7b dividend payout

    Shareholders of Access Bank yesterday approved the recommendation by the board for a distribution of N13.73 billion as cash dividends for the 2014 business year as the management of the bank assured that the bank is well placed to brace industry headwinds and deliver better returns to shareholders.

    At the annual general meeting in Lagos, shareholders commended the directors’ decision to distribute about one-third of the year’s net profit as cash dividends, noting that the directors balanced the shareholders’ interest with future growth need.

    The board of the bank had recommended distribution of additional N8.01 billion as cash dividends for the 2014 business year, bringing total dividend for the year to N13.73 billion. Accordingly, shareholders would receive a final dividend per share of 35 kobo in addition to interim dividend of 25 kobo paid earlier, totaling a dividend per share of 60 kobo. The company had paid the same rate for the 2013 business year. The final dividend became payable immediately it was approved yesterday.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Farouk Umar, commended the improvement in the performance of the bank in 2014 in spite of industry-wide headwinds occasioned by tight regulatory policies.

    He noted that the total dividend payout of 60 kobo was comparatively better than industry average, expressing optimism that the ongoing growth initiatives including branch expansion and diversification of businesses would increase performance in the future.

    In his remarks, president, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie said the 2014 performance was commendable and urged the bank to sustain the growth tempo.

    In his address to the shareholders, chairman, Access Bank Plc, Mr Gbenga Oyebode, assured that the bank would continue to drive its growth by maintaining strong capital and liquidity and ensuring effective risk management to reduce cost.

    According to him, Access Bank remains committed to the goal of reaching the pinnacle in Nigeria and Sub-Saharan Africa financial markets.

    Managing director, Access Bank Plc, Mr Herbet Wigwe, said the bank’s $400 million Eurobond and recent N58 billion rights issue would put the bank in good stead to stay ahead of regulatory changes and implementation of new standards.

    He said the bank was proactive with its capital raising plan in the immediate past year adding that the bank would maintain strong risk management strategy to continue to ensure a healthy financial institution.

    He said the bank would place more emphasis on retail business and continue to improve customer satisfaction across all business lines to enhance stakeholders return on investment.