Berger Paints Pays N145 Million Dividend to Shareholders

Shareholders of Berger Paints Nigeria Plc last week approved the N145 million dividend recommended by the directors for the year ended December 31, 2016, despite the inclement operating environment that characterised the year.

The shareholders, who gave the approval at the company’s annual general meeting (AGM), in Lagos, commended the board for the dividend and pledged their further support for the growth of company.

Addressing the shareholders, the Chairman of the company, Dr. Oladimeji Alo said: “To reward our shareholders for their investment and their commitment to the company, the board is recommending, the payment of the sum of N144,912,000 as dividend for 2016. This works out at the rate of 50 kobo per share”.

Alo, who reviewed the company’s 2016 performance indicators, noted that sales revenue and profit before tax which amounted to N2.60 billion and N271.8 million respectively were moderated by the major contraction of the economy and high operational cost.

According to him, the inability of many institutional consumers such as government agencies and corporate customers to meet with obligations affected their demand for paints and allied products while low purchasing power and high cost of basic household needs moderated effective demand at individual level.

Alo listed strategic initiatives such as depot outsourcing scheme, greater marketing support, digital presence, factory modernisation and implementation of an Enterprise Resource Planning System as some of the factors that enhanced the company’s performance last year.

He disclosed that the frontline manufacturer of paints and allied coatings has embarked on some initiatives to reinforce its competitive edge and ensure significant growth in the top- line and bottom- line.

The chairman explained that the initiatives which would be executed this year to further boost the company’s revenue include inaugurating the new automated factory, redesigning of packaging materials, and utilising ECOWAS Trade Liberalisation Scheme (ETLS) to expand presence in West Africa, beginning from Ghana.

He thanked the shareholders for their unflinching loyalty to the company and assured them that the company’s strong human capital, continuous innovation and adherence to the highest standard of corporate governance would always position it to deliver shareholder value.

Speaking in the vein, the Managing Director and Chief Executive Officer of Berger Paints, Mr. Peter Folikwe explained that the company leveraged on quality products and this would continue to endear it to numerous consumers.

According to him, the immediate pre-occupation of the company is to sustain its aggressive distribution as there are many niche markets awaiting the company’s products.