Cadbury promises better returns, to pay dividend in 2012
On May 11, 2012 · In Business
Chairman of Cadbury Nigeria plc, Mr. Atedo Peterside, has assured that barring any unforeseen circumstance, shareholders of the company would be rewarded with dividend payout in the current financial year as the management has successfully navigated the company out of the negative zone.
Addressing shareholders at the 47th Annual General Meeting (AGM), in Lagos, Peterside stated that the management was able to pull out of the N3.5 billion negative reserves in 2010 to about N2.20 million positive reserves in the year under review.
Explaining the inability of the company to pay dividend in the year, he said, “In Nigeria, it is illegal for a company to pay dividend if it has negative reserve. We have managed to get out of the negative reserve marginally ahead of 2012. You will recall that some investors refused to buy into our Rights Issue because of the projections we made in the prospectus that dividend will not be paid until 2012. What I will promise is that going forward; shareholders will be rewarded for their faithfulness to the company through the trying period.”
He further stated that on the profit realised during the year would be ploughed back into the business to sustain the renewed momentum and higher profitability.
He explained that the situation where the company’s profit before tax rose by 160 per cent from N1.953 billion in the corresponding year to N5.083 billion in the year under review was a sign of its keeping to the company’s corporate global vision and credible platform created by customers for its sustained growth.
He stated that the group recorded a turnover of N34.111 billion in the financial year ending December 2011, a growth of 17 per cent from N29,170,534 billion recorded in the corresponding year 2010, while operating profit grew by 165 per cent to N4.608 billion. With this, the company recorded a profit after tax of N3.7 billion as against N1.168 billion in 2010, this representing a 217 per cent growth.
He added that the company’s gross profit went up by 21 per cent to stand at N11.159 billion as against N9.249 billion recorded in 2011.
“In 2011, the company posted growth in revenue, profit and market share despite operating in a challenging environment made more difficult by disruptions in several parts of the country.
“The re-launches of our core brands, notably, Bournvita and TomTom re-established our brand portfolio as firm consumer favourites nationally. These results and a sustained improvement across several indices confirm our rebirth among the elite companies of the Nigerian Food & Beverage industry,” he added.