Shareholders of Julius Berger Nigeria Plc will receive a final dividend of N4.8 billion for the financial year ending December 2022, representing a total dividend of N3.00 per share declared by the construction giant.
The Board of Directors of Julius Berger Plc has pursuant to the powers vested in it by the provisions of section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria proposed a final dividend of N3.00 per share for the financial year 2023.
This was contained in the company’s corporate action announcement to the Nigerian Exchange Limited (NGX) and obtained by the Nairametrics.
Subject to shareholders approval: According to the company, the dividend is subject to shareholders’ approval and appropriate withholding tax will be paid to shareholders whose names appear in the Register of Members as at the close of business on 31st May 2024.
According to the statement signed by the company, on June 21, 2024, dividends will be paid electronically to shareholders whose names appear on the Register of Members as of May 31, 2024, and who have completed the e-dividend registration and mandated the Registrars to pay their dividends directly into their Bank accounts.
Advice to shareholders: Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on the website of the Registrars.
Shareholders with dividend warrants and share certificates that have remained unclaimed, or are yet to be presented for payment or returned for validation are also advised to complete the e-dividend registration or contact the Registrar.
What you should know:
Nairametrics reported that Julius Berger’s revenue growth of 1.17% YoY in 2023 below its five-year compound annual growth rate of 11% might create doubt about the company’s ability to sustain the growth.
While one year of slower growth is noteworthy, it’s essential to consider the company’s long-term performance and potential. A single year’s figure does not necessarily define a trend.
Moreover, profit growth in 2023 is striking surpassing its five-year growth rate driving earnings per share to N7.96, representing an impressive 61% YoY increase.
The balance sheet reflects a healthy financial position as indicated in its net cash position. JBERGER’s cash exceeds its total debt, indicating a favourable liquidity position.
This suggests financial strength and stability, which can instil confidence in investors regarding the company’s ability to manage debt obligations, invest in growth initiatives, and navigate economic uncertainties effectively.
That said, the crucial consideration lies in the company’s ability to maintain its growth trajectory. The commendable 61% YoY growth in earnings per share can be credited to a substantial increase in interest income, which surged by 489.5% in 2023, marking the highest growth in five years.
The exceptional rise in interest income suggests that the company has benefited from the current interest rate environment.
With its robust project portfolio and diversified operations and revenue streams, coupled with less reliance on debt financing, as indicated by its low debt-to-equity ratio of 3.31% and debt-to-asset ratio of 0.52%, one could argue that the company is well-positioned to capitalize on market dynamics to sustain its growth trajectory.
However, there is a need for the company to address its cost efficiency. Its profitability ratios reveal a relatively low profit margin, with a 5-year average gross profit margin of 19.01% and a net profit margin of 3.9%. This indicates significant costs associated with sales and operating expenses in relation to its revenue.