April 3 (Lagos) - UAC of Nigeria Plc (
UACN ) has proposed a dividend of 50 Kobo per unit to its shareholders which will be up for approval by shareholders at the Company's AGM on June 20th.
Qualification date is May 14th.
Payment date is June 21st.
Shares of
UACN are lower this afternoon by almost 5% at the time of writing this article around N 17.50 per unit.
The reason has probably something to do with the low dividend yield and shareholders expected much better results. The Company has been struggling for a while now in the face of aggressive competition from similar products which have been launched over the past few years. The Company has not been able to diversify into new food products.
Also investors in the food processing category are likely to go for stronger Companies which offer growth prospects such as
FLOURMILL or even
DANGFLOUR .
If you look at the
UACN 2017 fourth quarter, top line sales fell 21% to N 20.4 billion while Profit before tax declined 88% to N 202 million and operating expenses grew 80% to N 3.5 billion.
That is a lot of questions for the management to answer. That is a gross margin of 0.99% while other Companies in the same sector offer much higher efficiency.
reproting for easykobo.com on Tuesday, April 3 2018 from Lagos, Nigeria