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Unilever, Lafarge WAPCO’s directors to decide dividends

By BusinessNews Staff on March 11, 2014

Directors of Unilever Nigeria Plc and Lafarge Cement WAPCO Nigeria Plc will meet next week to consider the companies’ corporation actions regarding 2013 financial year.

While directors of Lafarge Cement WAPCO will meet on March 18, those of Unilever will meet on March 21, 2013. Apart from considering the audited accounts of the companies, the directors would also decide the dividends to be recommended.

According to market operators, considering their nine months results, shareholders of the companies should expect mixed dividends pay-out. Unilever had paid the same N1.40 dividend in 2011 and 2012. However, the company had ended nine months to September 30, 2013 with a decline in profit, thereby fuelling speculations that the company might reduce its dividend level or repeat what has been paid in the past two years.

Unilever’s revenue increased by 9.5 per cent or N3.954 billion from N41.66 billion to N45.614 billion. But profit after tax dropped from N4.007 billion in 2012 to N3.501 billion.

Its earnings per share during the period declined by N0.13 kobo or 12.26 per cent, ending the period with an EPS of 93 kobo compared to N1.06 kobo in the corresponding period of 2012.

The company’s total assets stood at N40.122 billion as against N36.498 billion in 2012, while total liabilities stood at N31.875 billion in 2013 from N26.454 billion in 2012.

On the other hand, Lafarge Cement, which paid dividend of 75 kobo in 2011 and N1.20 in 2013, recorded an increase in its nine months results.
The company’s revenue grew by six per cent, rising from N70 billion to N74.2 billion. Gross profit rose to N29 billion while pre-tax profit stood at N20.6 billion, showing an increase of 26 per cent above what was recorded in the corresponding period of 2012.

Post-tax profit of N74.28billion and N20.46billion, were up 6.35 per cent and 88.63 per cent from N69.84billion and N10.85billion recorded in2012.
Analysts at Dunn Loren Merrifield has said in their assessment, the post-tax profit in 2013 was already 39.09 per cent ahead of full year 2012 post-tax profit of N14.71billion and indicates that WAPCO’s earnings for 2013 will come in stronger than expected.

“Lending support to this assertion is our expectation that, in line with historical trends, Q4 2013 earnings will dominate Q3 2013 earnings even as Q3 2013 earnings are an improvement on Q3 earnings in the last two years,” the analysts said.

[This Day]

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