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Companies

CAP Plc proposes N1.47 billion as dividend for 2020, 28% lower than 2019 payout

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CAP Plc

The Board of Chemical and Allied Products Plc has proposed a total of N1.47 billion to the shareholders of the company as the dividend for the period ended December 31, 2020.

According to the notification issued by the management of the leading premium and standard paint maker, the dividend recommendation was one of the key approvals made by the Board, during the Board meeting held yesterday, 22nd of March 2021.

In line with the disclosure, the company is expected to pay its shareholders a dividend of N2.1 per share on all its 700,000,000 outstanding shares. This puts the total dividend payout to qualifying shareholders at N1.47 billion.

What you should know

  • The N2.1 per share dividend proposed by the company’s Board is subject to appropriate withholding tax and approval by the shareholders at the Company’s Annual General Meeting. The date of the AGM will be announced shortly.
  • CAP Plc did not pay its shareholders dividends in 2020, from its profit in 2019.
  • The proposed dividend is 27.6% lower than the N2.90 per share dividend that the company paid to shareholders in 2019 from the profits made in 2018.
  • Shares in CAP Plc are currently worth N20 per share at the open market as of today, 23rd of March 2021. At this price, the dividend yield of the company stands at 10.5%.

In case you missed it: Nairametrics reported that the post-merger entity of Chemical and Allied Products Plc and Portland Paints and Products Nigeria Plc will become the largest player in the Nigerian paints market with a combined estimated market share of 14.9%.

What to expect: CAP Plc is expected to file its Audited Financial Statements for the Year Ended December 31, with the NSE no later than March 31, 2021.

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Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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    Companies

    COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says

    NB Plc’s operations in 2020 were adversely impacted by the COVID-19 pandemic, VAT increase and FX devaluation.

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    Heineken scoops more Nigerian Breweries shares in insider disclosure

    The management of Nigeria’s leading brewer, Nigerian Breweries Plc has revealed that its operations in 2020 were adversely impacted by the COVID-19 pandemic, VAT increase, FX devaluation and scarcity of foreign exchange.

    This statement was made by the Managing Director of Nigerian Breweries, Mr Jordi Borrut Bel, at the company’s pre-AGM media briefing for the financial year-end 2020, which held in Lagos this week.

    He noted that the increase in the brewer’s cost in 2020 was due to the COVID-19 pandemic which disrupted the company’s operations, as well as the increase in VAT, devaluation and FX scarcity which has put pressure on input cost.

    READ: Alcoholic beverage makers on NSE lose a total N27.7 billion in a single day

    The Nigerian Breweries boss explained further that the increase in cost could not be fully attributed to currency devaluation and foreign exchange scarcity.

    He explained that the increase in costs of goods sold, as reported in its audited financial results, could also be linked to the increase in the volume of goods sold, as the company’s sales volume in 2020 increased by almost the same percentage as the cost of goods sold.

    To deal with this challenge going forward, he revealed that the company is focused on the supply chain, and will continue to seek out ways to mitigate any of the price increases coming from FX scarcity.

    READ: Brewery sector: A quarter to forget

    Hotflex

    The company’s profitability in question?

    An analysis of the company’s result revealed that despite the 4.3% increase in net revenue from N323.00 billion recorded in 2019, to a total of N337.01 billion in 2020, the company’s profit declined significantly by 53.3% to N7.53 billion.

    Speaking on this, Jordi Borrut in his statement at the press briefing noted that the brewer’s business performance in 2020 was quite impressive especially in the face of the COVID-19 pandemic and economic recession. Despite these challenges, the company maintained a strong and healthy balance sheet.

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    There was a slight reduction in profitability but compared to the previous year, the business witnessed an improved growth in revenue. The significance of this is that the business became more stable and healthier,” he said.

    READ: Nigeria’s triangular beer war on the rise with the arrival of Budweiser

    What you should know

    • Nigerian breweries, being the largest brewer in the country, maintained its stance in terms of generating profits year-on-year. The company emerged as the only brewer to record a profit of N7.37 billion from its operations in 2020, 54.3% lower than 2019 figures (N16.1 billion).
    • From this, the leading brewer was able to pay shareholders a total dividend of N7.5 billion, translating to a dividend of 94 kobos per share – a dividend payout in which exceeds 100%.
    • While Guinness and International Breweries made a loss of N12.6 billion and N24.9 billion respectively, this reality impacted their ability to pay their shareholders dividends in 2020.

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    Business News

    Highest paid Nigerian bank MD/CEOs of 2020

    Bank MD/CEOs in Nigeria earned a combined N1.5 billion in salaries in 2020.

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    The banking sector, especially commercial banks, is one of the most profitable sectors of the Nigerian Economy churning out profits of close to a trillion in 2020 alone. They are also one of the highest employers of labours in the country employing over 93,000 Nigerians.

    Sitting at the helm of affairs is the Chief Executive/Managing Director, the highest-ranking executive in the organization saddled with the responsibility of making the best corporate decisions, oversight of the execution of the organisation’s corporate strategies and most importantly increasing the shareholders’ return. The buck basically stops on their table.

    Thus, these enormous responsibilities also come with a considerable executive compensation for their service making them ostensibly the highest-ranking staff of the bank.

    READ: Jim Ovia: From a clerk to founder of Nigeria’s most profitable bank

    In typical Nairametrics fashion, we bring to you a list of the highest-ranking bank CEOs for 2020 based on their executive compensation (exec comps). The bank MD/CEOs under our review earned over N1.5 billion in salaries in 2020.

    The data was sourced from the published audited accounts of the bank and verified by Nairametrics Research.

     


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