Shareholders endorse Eterna Plc's dividend payment despite decline in profit

Shareholders of Eterna Plc have approved a total dividend payout of N326 million for the financial year ended 2018. This translates to 25 kobo per every 50 kobo ordinary share held.

The dividend declaration formed part of the agenda during the firm’s 26th Annual General Meeting held in Lagos recently.

Shareholders Impressed by Performance: The shareholders were excited by the company’s ability to maintain impressive performance, record growth, and declare dividends in spite of negative operating conditions at a time most quoted companies could not live up to these expectations.

“We are impressed with the record performance and the balance sheet. We are indeed happy that Eterna is paying dividend amid the tough challenges facing downstream operators in this country. It shows that the board and management of the company hold every shareholder in high esteem.” 

Breakdown of the Results: Alhaji Lamis Dikko, the company’s chairman, noted that the Eterna Plc posted consolidated operating revenue of N251.8 billion in the period under review. This marked a 45.57% leap over the N173 billion recorded in the corresponding period in 2017.

Gross profit, however, took a 27% slump from the 2017 figure, a situation Dikko attributed to the negative change associated with the high cost of doing business in the country. The exorbitant landing cost of petroleum products, which reached its all-time high in 2018 also contributed, as well as thinning margins on the company’s product lines.

Profit Before Tax also plummeted by 29%, signaling a reduction in margins and rise in the cost of production. In the meantime, the company said it is expanding.

“We are on course with our five-year strategic plan, designed to take our company to higher levels of success. As part of executing the plan, we acquired 14 additional retail outlets in 2018.

“We are consistently measuring our performance against set targets and the board is providing oversight to ensure that management delivers on the plans.”

The chairman announced that the company had been re-certified under the NIS ISO 9001:2015 Quality Management Standard, a gesture that further confirms the company’s compliance with global best practices in its processes and procedures.

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