Shareholders of Berger Paints Nigeria Plc have endorsed the firm’s total dividend of N232 million total dividend, bringing the final dividend to N1 per share.
The investors also commended the management for its resourcefulness in improving the company’s fortunes which translated into paying competitive dividends and an assurance for increased shareholder value.
Commenting on the company’s performance at its 64th Annual General Meeting in Lagos yesterday, the National Co-ordinator, Pragmatic Shareholders Association, Mrs Adebisi Bakare, stated that the 2023 performance was a significant improvement on the previous year against the background of headwinds such as high energy cost, soaring inflation rate and exchange rate, in addition to the low purchasing power of consumers.
According to her, Berger Paints was able to maintain its leadership position in the paint manufacturing industry in Nigeria.
“The performance is highly commendable, especially when we consider the challenges, such as energy cost, high interest rate, weak purchasing power of consumers and rising inflation amongst others in the operating environment,” said Bakare.
Other shareholders, including the Chairman Emeritus, Independent Shareholders’ Association of Nigeria (ISAN) Chief Sunny Nwosu, expressed satisfaction with the company’s impressive performance and commended its board and management for the balanced gender representation in their compositions.
Despite the inclement operating environment, Berger Paints declared a dividend of N232 million for the 2023 financial year up from N203 million paid in 2022, which was ratified by the shareholders and amounts to a dividend of 80 kobo per share for its shareholders.
The dividend brings the final dividend for the review period to N1.00 per share. In the period under review also, the company’s share price jumped to 116 per cent capital appreciation, from N6 in December 2022 to N13 by December 2023.
Other performance indicators of Berger Paints for the period showed impressive returns as Profit After Tax (PAT) recorded a significant surge of 125 per cent from N208 million in 2022 to N445 million in 2023.
This was realised from total earnings of N7.9 billion in the period under review, an increase by 25 per cent from N6.3 billion in the previous financial year.
The Chairman, Abi Ayida, explained that adherence to many sustainability initiatives enhanced the company’s performance in the review period. Ayida also attributed the stellar performance to five key pillars: product innovation, market expansion, operational efficiency, customer experience and strategic partnerships.
“In the face of market uncertainties, Berger Paints Plc., maintained its position as a leading player in the paints and coating industry. Our relentless commitment to innovation, product quality, and customer satisfaction has not only fortified our market presence but also empowered us to seize new opportunities for growth. Currently, Berger Paints operates within the premium and super premium segments of the market.”. explained Ayida.
Corroborating him, the Managing Director, Mrs. Alaba Fagun, stated that the performance was a testament to synergistic collaboration between the workers and the company’s strategic vision.
According to her, the management, deployed a harmonious blend of financial acumen, operational resilience, and strategic foresight’ while looking forward to building upon these accomplishments, fostering sustainable growth, and delivering enduring value to our esteemed shareholders.
“Beyond the quantitative achievements, our success story in 2023 was intricately woven with qualitative advancements, which ‘is a testament to the synergistic collaboration between our adept workforce and the strategic vision set forth by the leadership,” said Fagun.
