NSE: Market index inches up by 0.69% As shareholders endorse Berger Paints’ N217.4m dividend

After three days of persistent decline, stock prices marginally rebounded Thursday on the Lagos floor of the Nigerian Stock Exchange (NSE) to put the prime indicators on new highs, just as the shareholders of Berger Paints Plc. are to receive a dividend of 75 kobo per share.
When the closing gong finally sounded, the number of gainers for the day stood at 18 as against 16 losers. This propelled the market capitalization to N9.370trillion, up from its opening level of N9.307 trillion, and the All Share Index to 27,284.83 points as against 27,098.18 of the previous day.
Out of the 182.68million shares transacted in 3,631 deals as  the volume of business for the day, the Financial Services sector  topped the activity chart with 128.58 million shares.
As for price movement, Unity Bank rose by 9.09 per cent to top the gainers’ group by wrapping up at N1.20. Nestle and Total followed with 8.98 per cent and 4.99 per cent to close at N825 and N173. 63 per share respectively. The duo of NEM and DNMeyer jacked up their values by 4.55 per cent and 4.40 per cent to rise to 92 kobo and 95 kobo respectively.
On the losers’ chart, Red Star Express fell by 4.99 per cent to  drop to N4 per share. Cadbury and Honeywell plunged by 4.98 per cent and 2.94 per cent to drop to N18.51 and N1.65 respectively. Other top losers were A G Leventis and Cement Company of Northern Nigeria (CCNN) that witnessed 2.17 per cent and 1.96 per cent decline to close at 90 kobo and N7 respectively.
Meanwhile, in pursuit of its corporate goal of giving better return on investment, the shareholders of Berger Paints Nigeria Plc have endorsed the N 217. 4 million dividend proposed by its board.
The dividend payout translates to 75 kobo per share for the company’s 2015 financial year.
Besides, the elated shareholders alsoexpressed support for the company’s automated plant, which is expected to boost the company’s production and increase its operational efficiencies.
Addressing the shareholders yesterday at the Annual General Meeting (AGM), its  Chairman, Dr Oladimeji Alo, explained that the company had continued to make significant progress despite the challenging operating environment characterized by decline in the crude oil prices, controversial exchange rate of Naira, delay in the budgetary approval, insurgency and other disturbing issues, Berger Paints was able to scale the hurdle.
“In spite of the challenging operating environment, our company continued to sustain its performance, with emphasis on profitability and value creation for shareholders. Our profit before tax (PBT) grew from N249.3 million in 2014 to N565.2 million in 2015, representing a 126.7 per cent increase.
“As a demonstration of the confidence it has in the future of the company, and to reward shareholders for their investment, the board is recommending for your approval, the sum of N 217, 367, 585 to be paid out as dividend. This works out at 75 kobo per share”, Alo said.
He noted that as part of the strategy to sustain the company’s competitive edge, the special attention would be placed on the increase in earnings and profitability,  optimization of existing assets and business operations, commissioning of the new factory, investment in the leading brands, entering new categories with emphasis on Nano Castings, and driving efficient financial management among others.
Responding to shareholders’ comments, Alo assured them that the new factory under construction would bring about tremendous improvement in the company’s operations.
According to him, talks are going on with the appropriate authorities to secure tax break as pioneer status. He explained that the request for bonus shares would be considered at the appropriate time while the company would deploy the use of its products as part of the new measures to improve its Community Social Relations  (CSR).
Corroborating Alo, the Managing Director, Mr Peter Folikwe, explained that one of the strategic plans to boost earnings was to reduce cost through operational efficiency. He added that consumer education would  be accorded high priority to strengthen the relationship between the company and its customers. Commenting on the outsourced depots, Folikwe explained that it was a product of collaboration between the company and the entrepreneurs who are handling the depot business.
Shareholders generally commended the board and management for the company’s ability to sustain its operations despite the inclement operating environment . They assured the board and management of continued collaborative efforts.
Berger Paints Nigeria Plc, which commenced operations in Nigeria on the 9th January, 1959 is an acclaimed leader in the Coating and Allied industry in Nigeria. The company’s track records include its being the first paints manufacturer to be established on Nigeria, the first paints company to be quoted on The Nigerian Stock Exchange and the first paints researcher to introduce textured coating named Texcote to the Nigeria market.