Unilever pays GH¢0.05 dividend

Shareholders of Unilever Ghana at a recent Annual General Meeting (AGM) in Accra approved a GH¢0.05 per share dividend from profits realized in the 2016 financial year.

Total dividends to be paid out amounted to GH¢3.13 million, representing 89 percent of the company’s cash position at end of 2016.

The company posted a turnover of GH¢496.31 million, as against GH¢518.73 million same period last year, representing a 4.3 percent turnover decline from 2015 to 2016.

However, due to savings focus, a 6.7 percent cost of sales reduction was recorded from GH¢370.99 million in 2015 to GH¢346.11 million in 2016.

This resulted in profit-after-tax improving by 9.4 percent from GH¢35.71 million in 2015 to GH¢39.05 million in 2016.

Ziobeieton Yeo, Managing Director of Unilever Ghana, told shareholders that “we are happy to report that we closed the year 2016 with growth in profit before and after tax, we also recognised the decline in revenue because of volume lost in a highly competitive market.”

“The general liquidity challenges which affected our revenue mobilisation accounted for the reduction in the cash and cash equivalents at year end, as compared to the same period 2015,” he said.

He also said the company was confident of good performance this year, as it was about to embark on the expansion of outlets and other alternative channels to get closer to consumers.

Mr Yeo said Unilever continued to maintain leadership positions across categories in home and personal care.

In the home care category, laundry bars took 62.1 per cent share, personal care grew by seven percent while the oral segment registered a strong growth largely driven by Pepsodent.

“In 2017, the business will focus on driving more growth across category segments. Some of the growth drivers will be through innovations, consumer and trade relevant promotions,” he said.

Mr Yeo said the company would also turn around the range of skin cleansing and deodorants product line in 2017.

Edward Effah, Board Chairman, said he was hopeful of a continued stable economy and conducive environment to do business, adding that Unilever would continue to work towards building a sustainable business which would create wealth and adequate returns to shareholders while providing relevant solutions to customers.