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Tag: Unilever Nigeria

  • NSE okays N59b rights issue for Unilever Nigeria

    NSE okays N59b rights issue for Unilever Nigeria

    The Nigerian Stock Exchange (NSE) has approved Unilever Nigeria PLC’s plan to raise N58.9 billion in new supplementary equity issue.

    This will pave way for the fast-moving consumer goods company to round off the pre-offer process and open subscription to the new offer.

    According to the document obtained at the weekend by The Nation, Unilever Nigeria will be raising N58.9 billion in new equity funds by selling 1.962 billion ordinary shares of 50 kobo each to  its shareholders at a price of N30 per share.

    The rights issue will be pre-allotted to shareholders in the register of the company as at the close of business on June 28, on the basis of 14 new ordinary shares for every 27 ordinary shares held.

    Shareholders of Unilever Nigeria had at the Annual General Meeting (AGM) in Lagos approved a proposal by the board of the company to raise up to N63 billion in new equity funds by selling new shares to its shareholders.

    In preparation for the rights issue, shareholders also increased the authorised share capital of the company to N5 billion or 10 billion shares through the creation of additional 3.95 billion ordinary shares of 50 kobo each.

    Unilever Plc, United Kingdom, the majority core investor in Unilever Nigeria, is expected to provide about N35.4 billion in the capital raiser. It holds 60.06 per cent majority equity stake in Unilever Nigeria through its Unilever Overseas Holdings BV. Stanbic Nominees Nigeria Limited holds the second largest equity stake of 10.43 per cent in Unilever Nigeria.

    Unilever UK has shown sustained interest in increasing its majority shareholding in the Nigerian subsidiary. It mopped up additional shares through open market purchases at the NSE to increase its majority stake by 1.53 per cent from 58.53 per cent in 2015 to 60.06 per cent last year. It had also made open market purchases in 2015.

    Unilever UK will be required to contribute at least N35.35 billion to the rights issue to retain its  shareholding and the multinational may increase its stake by applying for additional shares from renounced rights.

    Unilever UK had earlier indicated it intended to acquire up to 75 per cent controlling equity stake in the Nigerian subsidiary. It had in first half of 2015 sought to increase its majority equity stake in the Nigerian subsidiary from 50 per cent to 75 per cent, citing long-term strategic importance of Unilever Nigeria to its global business.

    In a transaction initially valued at about N43 billion or £144.5 million, Unilever Overseas Holdings sought to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent by buying additional shares from minority shareholders. The tender offer sought to acquire about 942.42 million ordinary shares in Unilever Nigeria at a price of N45.50 per share in cash.

    Unilever Overseas Holdings B.V. had said it was making the additional share acquisition as part of long-term strategic plan by the conglomerate as it believes that Nigeria offers significant growth potential.

    “The Unilever Group has had a major presence in Nigeria for many years and continues to believe that the country offers significant growth potential. This makes Nigeria a strategic long term investment priority for Unilever Overseas. Globally, the Unilever Group is focused on investing in the foods, household and personal care categories and the long heritage and great brands of Unilever Nigeria in these categories in Nigeria make it attractive for Unilever Overseas to increase its holding in Unilever Nigeria, whilst maintaining its stock exchange listing,” Unilever stated.

  • Unilever Nigeria grows sales to N32.3b in first half

    •It’s still below expectation, says FBN Capital

    Unilever Nigeria Plc grew its top-line by 12 per cent 32.28 the first half of this year.

    The unaudited report and accounts of the multinational for the period ended June 30, 2016 showed that it posted a turnover and profit after tax of N32.28 billion and N1.094 billion within the period.

    The result showed 12 per  cent growth in turnover from N28.72 billion in first half of 2015 to N32.28 billion in the first half of 2016. Cost of sales increased by 16 per cent to N22 billion from N19 billion recorded in the corresponding period in 2015. Net finance costs reduced by 54 per cent to N0.67 billion for the six months ended June 30, 2016 compared to N1.47 billion reported for the corresponding period in 2015.

    With this, net finance cost as a function of operating profit improved significantly to 31 per cent in first half of 2016 as against 94 per cent in comparable period of 2015, reflecting sustained improvements in cash management. Also, profit after tax increased from N86 million in first half of 2015 to N1.09 billion in first half of 2016.

    The board of the company noted that consistency in performance over the last two quarters demonstrated the company’s strong resilience in a challenging operating environment.

    The company said while trading conditions remained difficult in the second quarter of 2016 with prevailing tight consumer  wallets and rising costs, it has continued to optimise its planning capabilities and demonstrated resilience in navigating the difficult operating terrain.

    The board noted that the first half performance had been delivered in the midst of multiple challenges including foreign exchange devaluation, amongst others.

    In a statement, Unilever Nigeria assured shareholders of continued focus on key business drivers to ensure sustained growth in the company’s operations to improve returns on shareholder investments.

    “Although the challenges in the operating environment are yet to abate, we have continued to see sustained momentum behind recent cost and operating efficiency initiatives taken by management. We remain focused on driving cost and operating efficiencies, growing market share across key categories and reinvesting behind our core brands,” the company stated.

    Meanwhile, analysts at FBN Capital said the obvious growth in the first half performance was due to weak performances in the previous period, insisting that the company’s overall performance remained weak and its share price over-priced.

    Analysts said Unilever Nigeria was probably able to grow its top-line because of reduced competition from imported products as importers of food and household products have found it challenging to source foreign exchange while those able to source foreign exchange have struggled to increase prices due to the fragmented and low-switching-cost nature of the industry.

    “Unilever management has not guided the market on their outlook for some time, hence the wide disparity between our forecasts and consensus and the actual reported figures. Following the weaker-than-expected results, we expect to see downward revisions to consensus estimates. Year to date, Unilever shares have shed -23.7 per cent, significantly underperforming the NSE ASI, which has gained +0.6 per cent,” FBN Capital stated.

    FBN Capital added that in spite of the sell-off so far this year, Unilever Nigeria’s shares are still overpriced and market will likely react negatively to the company’s half-year results. “We rate the stock underperform,” FBN Capital stated.

     

  • Unilever promises further commitment to sustainable business

    Unilever promises further commitment to sustainable business

    The Global Chief Executive Officer (CEO) Unilever, Paul Polman on Monday pledged the company’s commitment to building sustainable and profitable businesses in Nigeria while creating a bright future for Nigerians.

    The Global CEO made this known when he visited President Muhammadu Buhari at the Presidential Villa in Aso Rock Abuja, in the company of the Leadership team of the multinational organisation.

    Polman mentioned that the company, which has been operating in Nigeria for over 90 years, would continue to step up its capital investment in the country by enhancing its local manufacturing capacity. “We have concluded plans to expand our business base in the country, albeit the prevailing economic challenges. We are a proud Nigerian company doing business here since 1923, and we intend to stay for even longer,” he said.

    “At Unilever, we believe that businesses cannot exist without the environment, which is why we ensure that we create value that sustains our ecosystem. Nigeria is strategic to our business operations in Africa, and as we continue to do business here, we will add value to the community, to the people and the country.”

    Also speaking at the event, Igwe Alfred Nnaemeka Achebe, Unilever Nigeria’s Board Chairman, who led the Unilever delegation, spoke extensively on Unilever’s commitment to adding value to the economy, stating that so much work has been done, and more underway, in contributing to the employability and capacity development of thousands of Nigerians.

    “We currently provide employment to thousands of people across the country directly and indirectly through our supply chain, and we will do more as we enhance our local operations. We are also working with different partners to empower rural women, build small business skills and enhance the skill sets of students to make them employable once out of school,” he said.

    “As a company, we are committed to the growth and development of Nigeria and we will continue to do our best to support the various initiatives of government, while stepping up our capital investment in Nigeria,” he added.

    In his response, President Buhari commended the company for their long history in Nigeria, and commended their efforts in sustainable development over the years. He noted that his administration recognizes the Unilever’s drive towards establishing industries that have created various employments for Nigerians especially the youths.

    He said: “I appreciate Unilever’s efforts in creating more employment and job opportunities through agriculture and it is a good thing at this time as my government is also focused more on agriculture. Nigeria is a country that can feed itself if only it can put more drive towards agriculture and I know Unilever is passionate about development and agric. We are, therefore, endeared by your commitment to enhancing this sector, thereby creating a sustainable environment for all.”

    “Our aim is to provide the enabling environment to help businesses thrive in Nigeria, hence, we want to assure you of our continued support in this regard,” he added.

  • Shareholders block Unilever’s bid for overriding stake in Unilever Nigeria

    Shareholders block Unilever’s bid for overriding stake in Unilever Nigeria

    Nigerian shareholders largely shunned a N43 billion share-acquisition bid by Unilever Overseas Holdings, United Kingdom aimed at acquiring a quarter of Unilever Nigeria’s shares to increase the multinational’s majority equity stake in the Nigerian subsidiary to 75 per cent.

    The latest audit of Unilever Nigeria, scheduled to be presented to the company’s general meeting on May 12, indicated that Unilever UK’s total shareholdings in Unilever Nigeria only increased by 8.49 per cent from 50.04 per cent to 58.53 per cent after the conclusion of acquisition bid. Besides, Unilever UK had resorted to mopping up the shares of Unilever Nigeria through the Nigerian Stock Exchange (NSE).

    Unilever UK now holds 58.53 per cent, 16.47 per cent short of the 75 per cent, through two holding companies-Unilever Overseas Holdings BV Holland, which holds 50.04 per cent and Unilever Overseas Holdings BV, which holds 8.49 per cent. Nigerian investors retain 41.47 per cent shareholdings in Unilever Nigeria.

    “The total shareholding of Unilever Overseas Holdings B.V. increased to 321,395,410 following the Tender Offer to other Shareholders of Unilever Nigeria Plc and open market purchases made during closed periods in 2015,” according to the audit.

    The Nation’s check indicated that Unilever UK holds a total of 2.214 billion ordinary shares of 50 kobo each out of Unilever Nigeria’s total issued shares of 3.78 billion ordinary shares of 50 kobo each. A breakdown showed that Unilever Overseas Holdings BV Holland holds 1.89 billion shares.

    Under the extant laws, a 75 per cent equity stake would have given Unilever UK the overriding majority equity stake to undertake several strategic transactions including mergers, acquisitions, new capital issues and other major corporate changes with little or less resistance from Nigerian shareholders.

    A shareholders’ leader who spoke to The Nation said they mobilised against the acquisition bid because Nigerian shareholders felt the bid was not fair and in the best interest of Nigeria. The shareholders’ leader cited shareholders’ resistance to similar move by GlaxoSmithKline UK, which was forced to abandon bid to acquire overriding majority equity stakes in GlaxoSmithKline Consumer Nigeria by acquiring shares held by minority Nigerian shareholders.

    Unilever Overseas Holdings, the United kingdom-based foreign core investor in Unilever Nigeria, had in first half of 2015 sought to increase its majority equity stake in the Nigerian subsidiary from 50 per cent to 75 per cent, citing long-term strategic importance of Unilever Nigeria to its global business.

    In a transaction initially valued at about N43 billion or £144.5 million, Unilever Overseas Holdings sought to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent by buying additional shares from minority shareholders. The tender offer sought to acquire about 942.42 million ordinary shares in Unilever Nigeria at a price of N45.50 per share in cash.

    In a statement signed by Richard Hazell, Director, Unilever Overseas Holdings B.V, Unilever had said it was making the additional share acquisition as part of long-term strategic plan by the conglomerate as it believes that Nigeria offers significant growth potential.

    “The Unilever Group has had a major presence in Nigeria for many years and continues to believe that the country offers significant growth potential. This makes Nigeria a strategic long term investment priority for Unilever Overseas. Globally, the Unilever Group is focused on investing in the foods, household and personal care categories and the long heritage and great brands of Unilever Nigeria in these categories in Nigeria make it attractive for Unilever Overseas to increase its holding in Unilever Nigeria, whilst maintaining its stock exchange listing,” Unilever stated in the statement enclosed in the tender offer.

  • Unilever increases majority shareholding in Unilever Nigeria

    Unilever Overseas Holdings, the United kingdom-based foreign core investor in Unilever Nigeria, might have successfully increased its majority shareholding in Unilever Nigeria Plc.

    Market sources yesterday said Unilever’s recent tender offer was successful, citing reports by parties to the offer.

    Unilever had on June 25, 2015 closed acceptance list for a £144.5 million tender offer, which sought to increase its equity stake in Unilever Nigeria from 50.04 per cent up to a maximum of 75 per cent by buying additional shares from minority shareholders.

    The tender offer sought to acquire about 942.42 million ordinary shares in Unilever Nigeria at a price of N45.50 per share in cash. The tender offer, which was initially scheduled to close on Wednesday June 10, was extended till Thursday June 25. The parties to the tender offer then said the extension was to give shareholders ample opportunity to consider the tender offer citing the disruption created by the fuel scarcity during the period of the offer.

    Market sources in the know said Unilever has increased its majority equity holding to more than 70 per cent.

    “They did their homework well and targeted the portfolio investors which held substantial shares, many of which felt they could bail out with the tender price. The Nigerian minority shareholders, which were protesting had relatively insignificant shareholdings,” said a source.

    The shareholding range analysis of Unilever Nigeria for the period ended December 31, 2015, which was presented in May 2015, indicated that the vast number of Nigerian minority shareholders, who constituted some 90 per cent of the number of shareholders, held less than 15 per cent equities in the company.

    Unilever, a source said, had concentrated on some three per cent of the shareholders and had sought their buy-in in the finalization of the tender offer.

    The downtrend at the stock market also buoyed the tender offer, with the company’s share price at the Nigerian Stock Exchange (NSE) mostly trailing the offer price.

    Nigerian minority retail shareholders had criticized the offer as self-serving and unfair. Shareholders’ leaders said they would mobilize against the tender offer describing it as a disservice and another way to sideline Nigerians from the benefits of the company they had helped to nurture with their funds and patronage.

    Shareholders said giving the foreign investor undue control could short-change the minority shareholders citing the voluntary delisting of Nigerian Bottling Company (NBC) by the foreign core investors, who used their majority shareholdings to push through delisting of the iconic company.

    But Unilever Overseas Holdings B.V, in a statement signed by its director Richard Hazell, said it was making the additional share acquisition as part of long-term strategic plan by the conglomerate as it believes that Nigeria offers significant growth potential.

    “The Unilever Group has had a major presence in Nigeria for many years and continues to believe that the country offers significant growth potential. This makes Nigeria a strategic long term investment priority for Unilever Overseas. Globally, the Unilever Group is focused on investing in the foods, household and personal care categories and the long heritage and great brands of Unilever Nigeria in these categories in Nigeria make it attractive for Unilever Overseas to increase its holding in Unilever Nigeria, whilst maintaining its stock exchange listing,” Unilever stated in the statement enclosed in the tender offer.

    President, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the tender offer was another way of taking control of Nigerians’ shares and it would detract from Nigerians’ ability to benefit from the wealth creation from their national and personal resources.

    According to him, shareholders and other stakeholders need to look beyond the metrics of pricing, procedures and technicality of such tender offer to real national issue of economic wealth creation, participation and empowerment.

    “I am totally against it, and the regulators should sit down and review the proposal. If they can stop GlaxoSmithKline from such transaction, I don’t see reason why they shouldn’t take a second look at this,” Nwosu said.

  • Unilever struggles with dwindling margins

    Unilever struggles with dwindling margins

    Unilever Nigeria has continued to struggle with slow sales and dwindling margins and the fast moving consumer goods company may not be able to keep up with its dividend rate, according to the latest earnings report.

    Emerging operational report for the nine-month period ended September 30, this year showed that Unilever Nigeria’s performance outlook was constrained by low sales growth amidst steady costs, which further eroded possible dividend payout.

    Unilever Nigeria recorded total sales of N45.61 billion by September 2013, 9.5 per cent above N41.66 billion recorded in comparable period of 2012. Gross profit inched up by 6.8 per cent from N15.60 billion to N16.66 billion. However, with relatively considerable increase in operating expenses, profit before tax dropped to N5.04 billion in 2013 as against N5.77 billion in 2012. After taxes, net profit distributable to shareholders declined from N4.01 billion to N3.50 billion. Earnings per share thus dropped from N1.06 by third quarter 2012 to 93 kobo in 2013.

    The third quarter earnings depressed dividend outlook for the conglomerate. Marginal increase in earnings per share to N1.48 in 2012 compared with N1.46 in 2011, had encouraged Unilever Nigeria to sustain a dividend per share of N1.40 in 2012, the same rate it had distributed in 2011.

    The latest earnings report showed the continuing struggle of the conglomerate to break midline constraints. Unilever Nigeria’s turnover had risen by 10.2 per cent during the six-month period ended June 30, 2013 to N29.67 billion as against N26.92 billion recorded in corresponding period of 2012. Gross profit fared better with 11.3 per cent growth from N9.76 billion to N10.86 billion. Operating profit however pared down with an increase of 8.8 per cent to N4.34 billion as against N3.99 billion in comparable period of 2012. The bottom-line was further constrained by interest expense, with profit before tax rising by 3.7 per cent from N3.82 billion to N3.96 billion. After taxes, net profit dropped by 3.2 per cent to N2.74 billion compared with N2.83 billion. The underlying margins showed decline in the underlining profit-making capacity. While gross profit margin increased slightly from 36.26 per cent to 36.6 per cent, operating profit margin slipped from 14.82 per cent to 14.63 per cent. Profit before tax margin declined to 13.35 per cent as against 14.19 per cent in comparable period of 2012.

    The same performance trend was evident in its audited report for 2012, which had shown almost a standstill position. Full-year report ended December 31, 2012 showed that turnover stood at N55.55 billion in 2012, a marginal improvement on N54.73 billion recorded in 2011. Profit before tax closed 2012 at N8.19 billion as against N8.02 billion in 2011. Profit after tax was also almost flat with negligible increase of 1.5 per cent from N5.52 billion to N5.60 billion.

    The board of Unilever Nigeria had said the conglomerate was operating in a tough environment. It however promised to continue to implement key initiatives under its transformation programme to drive growth and ensure realisation of the better values for all stakeholders.

    In a recent review, Chairman, Unilever Nigeria, HRM Nnaemeka Achebe, said the conglomerate’s fundamentals had been resilient within the context of the tough operating environment.

    He said the performance of the company reflected the recent strategic actions and investments, which have made the company to emerge stronger and in better competitive position.

    According to him, the company’s compelling vision would continue to drive focus that will guarantee its ability to continue to win into the future as it has further embedded itself to win in the market place and withstand adverse business operating environment.

    “Our sustained investments would continue to yield strong results and bigger and better innovation which enables us to continue to meet and exceed customer expectation at all times,” Achebe said.

    Managing Director, Unilever Nigeria Plc, Mr Thabo Mabe, outlined that as part of the transformation initiative, the company has been strengthening the capacity of its key stakeholders including employees, suppliers and distributors.

    “The train has definitely left the station, and for us as a business, there is no way to move but forward,” Mabe assured.

  • Analysts appraise Okomu Oil and Unilever Nigeria

    Analysts appraise Okomu Oil and Unilever Nigeria

    Securities analysts last week beamed their searchlight on the performance of two manufacturing firms Okomu Oil Palms and Unilever in the wake of Nigeria’s unstable economic climate. They put into perspective some surprises and shock that can aid investment decision in the short-medium and long-term.

    According to an analyst, Alhaji Atiku Kafaru of Camry Security, over the past two years, the Okomu Oil Palm has lifted its net profit by more than N13 billion gains in changes in asset values. Gains on changes in fair value of non-current biological assets jerked up the company’s bottom line by N7.3 billion in 2011 and further by over N5.9 billion in 2012. The gains, which are converted directly into profit, contributed up to 63% of the company’s total profit figure of N20.8 billion in 2011 and 2012.

    The big gains from the value of the company’s assets seem to neutralise the weakening of profit performance on continuing operations. Profit on continuing operations declined by 8.5% in 2012 to N3.59 billion. Between the beginning of 2011 and the end of 2012, the value of non-current biological assets of the company had expanded by 172.1% to over N21 billion.

    The oil-palm producing company had surprised stock market investors and traders in 2011 when out of its turnover of N11.21 billion, it posted a net profit of N10.52 billion. Apart from the N7.3 billion gain in asset value in that year, there was also a big leap in profit from continuing operations from N1.63 billion in 2010 to N3.92 billion in 2011.

    The company had closed its 2011 operations with a net profit multiplied about six and half times. That gave it the position of the number one company on earnings- per-share basis in the entire Nigerian stock market. With earnings per share of N22 for that year, Okomu was ahead of Nestle’s N21 per share for the same year.

    In 2012, the big strength in sales revenue seen in 2011 could not be maintained. Against a rise of 82.6% in sales revenue in 2011, the company’s turnover declined by 8.8% to N10.15 billion. Earnings fluctuation is a feature of the company’s agricultural business due to changes in weather conditions and product-yield levels. The decline in profit from continuing operations in 2012 is therefore a reflection of the decline in sales revenue during the year.

    There was equally a drop of 18.7% in the gains on the value of biological assets in the year, leading to an overall fall of 14.9% in net profit in 2012. Net profit margin therefore declined from 94.6% in 2011 to 88.3% in 2012. Based on continuing operations however, net profit margin is virtually unchanged at 35.4% over the period.

    Earnings per share is down from N22 in 2011 to N18 in 2012, now well below the over N26 per share earned by Nestle in 2012. It is yet quite a high figure not likely to be matched by any other listed company.

    For investors and analysts, the company’s full year result for 2012 was a big surprise from a company that posted N3.06 billion after tax profit at the end of the third quarter. The mild improvement in profit on continuing operations to N3.59 at full year is normal, as the final quarter is an off-season period in the company’s operations. The difference in the year is therefore the additional gains in the value of biological assets, which had not been included at the end of the third quarter.

    Whether there will be further gains in the value of biological assets in 2013 is therefore a major factor that investors and analysts have to watch out for. How much will be the gain?, if it occurs, is also another important factor to watch out for on the company.

    Meanwhile, these gains have now taken the company to a height in share price valuation where its earnings on continuing operations could not have placed it. Whether it will stand or fall from there depends on whether more asset value gains will be converted into profit for yet another year and how fast the company’s core business can grow to cover the gap created.

    With the decline in sales revenue in 2012, the company had to adopt effective cost management to defend profit margin. A major cost saving came from cost of goods sold, which dropped by 39% against the 8.8% decline in sales revenue. That means the cost of a unit of sales dropped from 28 kobo in 2011 to 18 kobo in 2012. That raised gross profit margin from 72.3% to 81.5% over the period.

    The company’s earnings picture was also stabilised by income from non-core operations as well as the insignificance of interest expenses. Earnings from other works of the company more than doubled at N498 million in the year and other income rose more than four and half times to N517 million. Interest income of N170 million largely offset interest charges of N198 million during the year.

    The rapid growth in asset value against a decline in sales revenue in 2012 indicates weakness in asset productivity. Asset turnover has declined from 0.5 in 2011 to 0.3 in 2012. The company needs to grow sales revenue significantly to justify the high and rising asset figures in the balance sheet.

    The company has declared a dividend of N7.0 per share and a bonus of 1 for 1. This represents a cash dividend yield of about 10% based on the price of the stock when the dividend was announced. The company’s register is scheduled to close on 14th May while payment date is yet to be advised.

    The Okomu’s dividend yield is so far unmatched in the stock market. It beats Zenith Bank’s dividend yield of 7.6% and GTB’s 5.2%. It is well ahead of Mobil Nigeria’s dividend yield of 4.0% and Presco’s figure of 0.4%. Nestle Nigeria’s dividend yield is 2.0%, Lafarge Wapco’s is 1.6% and Cadbury Nigeria’s comes to 1.4%.

    The company’s bonus 1 for 1 means the volume of shares of the company will double to about 954 million in 2013. This indicates that earnings and dividend per share are very likely to drop in the current year even with further gains in the value of biological assets. In the absence of any further gain in asset value, the company will need to grow sales revenue and profit from continuing operations to be able to maintain reasonable dividend pay-out in 2013.also unilever

    The growth rate of Unilever was very marginal interms of revenue and other indices.

    The revenue growth was just 2% despite the needy sector they found themselves i.e. Personal Care products sub sector of the manufacturing industry. This could be linked to the stiff competition that is very much available in the sector.

    The revenue rose from N54.7B in 2011 to N55.4B in 2012, there was also a 2% reduction in the cost of sales from N34.7B in 2011 to N33.9B in 2012, while their Distribution /Admin expenses rose by 8% from N11.76B in 2011 to N12.73B in 2012.

    Finance charges rose by 119% from N427M in 2011 to N935M in 2012. The company should look for a cheaper alternative way of financing its business/activities.

    The profit after tax is almost flat just by a marginal increase of 1% from N5.49B in 2011 to N5.70B in 2012, this in effect translate to the proposal of the same amount of dividend paid in 2011 account of N1.40k.

    The company should pay more attention towards its cost moderation strategy to improve its bottomline. The finance charges should also be looked at and if possible device a cheaper alternative source of finance.