March 29 (Lagos) - Unilever Nigeria Plc (
UNILEVER ) reported financial results for full year 2017.
Top line revenue surged to N 90.7 billion in 2017 from N 69.7 billion in 2016.
Profit before tax increased to N 11.2 billion in 2017 from N 4.1 billion in 2016.
Profir after tax increased to N 7.45 billion in 2017 from N 3 billion in 2016.
UNILEVER will pay dividend of 50 kobo per unit to its shareholders after getting the shareholders approval at their AGM. That is a dividend payout of N 2.8 billion.
During the year
UNILEVER completed their rights issue which increased their grip on the Company even further.
Univeler Overseas Holdings B.V. Holland now hold 55.05% of shares outstanding while Unilever overseas Holdings BV hold 12.01% of shares outstanding. That is 67% of the Nigerian subsidiary being held by Unilever overseas now. A further 12.38% is held by Stanbic Nominees Nigeria Ltd.
Yes the P/E is very high and dividend yield is very low but this kind of a blue chip stock is extremely rate in Nigeria and whoever has it is likely to hold it than trade it. They are essentially paying a dividend to themselves.
We are talking about a Company that is almost 80% held by the parent Company and their close associates. The remaining 20% is what is held by outsiders which includes Nigerian institutional investors.
The stock closed at N 55 per unit today at the Nigerian Stock Exchange in Lagos. keeping the above points in mind, we should expect these shares to zoom towards the N 100 mark during the next 9-12 months. This article is for information purposes only and not a recommendation to buy or sell any stock mentioned.
reporting for easykobo.com on Thursday, March 29 2018 from Lagos, Nigeria
Note - this article is for information purposes only. This article is not an investment advice. Investing in stocks includes risk and you should always consult a professional investment adviser before buying any stocks.
Source - Unilever annual report.