Berger Paints pays dividend of N232m, grows profit 125%

Shareholders of Berger Paints Nigeria Plc have approved a dividend payout of N232 million for the financial year ended December 31, 2023. The amount represents an increase of N29 million or 14.29 per cent  compared with N203 million paid in 2022.

The dividend ratified in Lagos by shareholders at the company’s 64th Annual General Meeting (AGM) translates to N0.80 Kobo per share, bringing the final dividend payment for the year under review to N1.00 per share.

The directors had earlier approved and paid an interim dividend of 20 kobo per share during the year on issued share capital of 289,823,447 ordinary shares of 50 kobo each.

Commenting on the company’s performance, the National Co-Ordinator of the Pragmatic Shareholders Association, Mrs. Adebisi Bakare, said  the 2023 performance is a significant improvement on the previous year against the background of headwinds such as high energy cost, soaring inflation rate, and exchange rate crisis, 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 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,”she added 

The Chairman Emeritus of the 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.

Addressing shareholders at the AGM, the company’s Chairman, Mr. Abi Ayida, pointed out  that adherence to many sustainability initiatives enhanced the company’s performance in the review period.

Ayida who attributed the stellar performance to five key pillars: product innovation, market expansion, operational efficiency, customer experience, and strategic partnerships said 

“In the face of market uncertainties, Berger Paints Plc. maintained its position as a leading player in the paints and coating industry.”

He said “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.”

The chairman said  despite the challenging operating environment in 2023, a review of the financial result shows improved performance across all financial indices.

“Our revenue grew from N6.33billion to N7.96billion representing a 25 per cent increase while the profit for the year was N445 million, 125 per cent higher than N208 million which was achieved in the previous year,“he said.

The Managing Director, Mrs. Alaba Fagun, stated that the performance is 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,” Fagun said. 

Shareholders of Berger Paints Nigeria Plc have commended the management for its resourcefulness in improving the company’s fortunes in the last financial year and for paying competitive dividends and assuring them of higher shareholder value.