Shareholders approve Dangote floursâ€˜ 20k per share dividend
Category: Capital Market
Shareholders of Dangote Flour Mills Plc on Wednesday, approved the 20k per share dividend proposed by the company‘s board of directors for the financial year ended December 31 2008, and the 30k per share interim dividend proposed for the nine months period ended September 30 2009.
At the Annual General Meeting held in Lagos on Wednesday, the board presented its full year result for the 2008 financial year, which showed an after tax profit of N2.99bn over N561.6m in 2007, on a turnover which rose from N42.15bn in 2007 to N47.93bn in 2008.
Share capital remained at N2.5bn, shareholders‘ funds increased from N21.98bn in 2007 to N24.4bn, and earnings per share rose from 11kobo to 60kobo per share.
Commenting on the result, the Secretary General of the Independent Shareholders Association, Mr Adebayo Adeleke , Commended the board on the performance and the interim dividend proposed for the third quarter of 2009.
The Chairman, Ibadan Zone Shareholders Association, Chief Aderemi Oyepeju, also thanked the board for the dividend paid, despite the downturn being experienced currently in the economy, but he noted that there was room for improved performance in the years ahead.
Addressing shareholders earlier, the company‘s Chairman, Alhaji Aliko Dangote, attributed the performance of the company to improved customer service, and efficiency on the part of the company‘s management.
According to him, ‘‘The global financial meltdown imposed challenges on the business environment through reduced access to both local and foreign finance, reduced purchasing power in the economy and sustained high price of wheat, our major raw material.
“Despite the harsh operating environment, your company was able to operate profitably and retain its market share by focusing on efficiency and improved service.‘‘
Dangote told shareholders that the appointment of Mr.Rohit Chaudhry as the managing director has paid off, since the company had recorded enhanced profitability, which prompted the board to propose and declare payable, an interim dividend of 30kobo for every 50k share for the third quarter ended September 2009.
Going forward, Dangote said the company was expanding its operations to enhance profitability and returns to shareholders.