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UAC explains improved financial performance

By BusinessNews Staff on June 27, 2014

The Chairman of UAC of Nigeria Plc (UAC), Udoma Udo Udoma, yesterday attributed the growth recorded by the company for 2013 financial year to innovative and proactive measures the company’s management adopted to tackle market dynamics and competitive pressures in the operating environment.

UAC grew its turnover by 13 per cent from N69.6 billion in 2012 to N78.7 billion in 2013, while operating profit rose from N11.5 billion to N15.3 billion.

Based on the improved performance recorded in 2013 and in line with the company’s dividend policy, the board recommended a dividend of N3.4 billion representing 36 per cent over the N2.5 billion paid in 2012.

Addressing shareholders at the company’s annual general meeting(AGM) in Lagos, Udoma said the performance was made possible because the management took some proactive decisions.

“During the year we acquired two new companies, Livestock Feeds Plc and Portland Paints and Products Nigeria Plc and continued to build on our strategy of working with partners who bring value to our businesses.

We currently have strategic partners in Tiger Brands Limited for UAC Foods Limited, Imperial Logistics for MDS Logistics Limited and Famous Brands for our UAC Restaurants Limited businesses. These bold initiatives have repositioned our group for sustainable growth and improved performance in the years ahead,” he said.

He expressed optimism that UAC will record modest growth in 2014 the challenges notwithstanding.

“We are very optimistic as to the growth prospect of UAC in the medium term as we integrate the two newly acquired businesses, Livestock Feeds Plc and Portland Paints and Products Nigeria Plc, into the UAC family and continue to build on the synergies created by our various strategic alliances with other industry leaders.

“The future of UAC is indeed bright as we are poised to reap the benefits of the investments we are currently making as well as the capacity upgrades we are undertaking in our various businesses,” Udoma said.

He commented on Nigeria’s centennial celebrations, saying: “As the country celebrates 100 years of the establishment of Nigeria by amalgamation of the Northern and Southern protectorates, we are proud of the contributions our company has made to the growth of the Nigerian economy over the period. We intend to make even greater contributions as we enter into our second century of existence.”

[This Day]

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