Berger Paints plans sub-saharan African expansion
• Shareholders endorse N144.9m dividend
BERGER Paints Plc has announced that the firm has obtained the ECOWAS Trade Liberalisation Scheme (EETLS) certificate that would enable it promote free trade across sub Saharan Africa, starting with Ghana.
Besides, shareholders of the company approved N144.9 million dividends, culminating to 50 kobo per share for the 2016 financial year.
Addressing shareholders at the company’s yearly general meeting held in Lagos at the weekend, the Chairman of the firm, Dr. Oladimeji Alo, explained that the company has embarked on various initiatives to reinforce its competitive edge and ensure overall growth and profitability. According to him, the company has completed plans to redesign its bucket and cans to increase their aesthetics appeal and increase their security features to make them tamper proof. Furthermore, he explained that the company would commission its new automated plant, which would help improve product quality and capacity to meet customers’ need this year.
“To reward our shareholders for their investment and their commitment to the company, the board is recommending, the payment of the sum of N144.9 million as dividend for 2016. This works out at the rate of 50 kobo per share.”
The Chairman explained that the company was able to weather the storm in its 2016 operations through depot outsourcing scheme, greater marketing support, digital presence, factory modernisation and implementation of an Enterprise Resource Planning System, to promote performance in the current financial year.
Alo, who reviewed the company’s 2016 performance indicators explained 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 household needs moderated effective demand at individual level. He commended 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.
The company’s Managing Director and Chief Executive Officer, Peter Folikwe, said Berger Paints leveraged on quality products and this would continue to endear it to numerous consumers.
Folikwe added that the immediate plan of the company was to sustain its aggressive distribution as there are many niche markets awaiting the company’s products.