UACN Records N234.4m Profit in 3 Months
By Uche Obike and Tunyosola Ayansiji
UAC of Nigeria Plc has announced N234.4 million profit after tax for the first quarter ended March 31, 2004, compared with N184.9 million it made in 2003, representing a growth by N49.50 million or 26.7 per cent.
The company's unaudited financial results for the same review period released to market operators by the Nigerian Stock Exchange (NSE) also showed a turnover of N5.4 billion, as against N5.0 billion in the comparable period of 2003. This represents an increase by N400 million or eight per cent.
UACN declared 60 kobo dividend per share for the financial year ended December 31, 2003.
The company's audited financial results for the period showed a turnover of N20.8 bi11ion, as against N17.5 bi11ion in 2002, while profit after tax and minority interest stood at N2.2 billion compared with Nl.2 billion in 2002.
It could be recalled the Group Managing Director, Ayo Ajayi recently told stock market operators during a fact behind the figures presentation that the significant improvement in the results of the company was due to portfolio of businesses with high value addition; a new strategic direction for UACN; focus on its chosen markets with the vision of becoming number one; on-going initiatives on improving internal efficiencies and a people focused programme named "Winning With People" (www).
The company has laid a solid foundation for the brighter future which has started providing enhanced dividend for its shareholders.
The company's performance in 2002 showed that its sales to third parties increased to N17.519 billion from N13.237 billion in 2001, while operating profits grew from N2.270 billion in 2001 to N2.804 billion in 2002.
It also recorded an increase in profit before tax which rose from N1.462 billion in 2001 to N1.639 billion in 2002, while funds employed stood at N7.933 billion in 2002 compared to N7.047 billion in 2001. Its fixed assets also moved higher from N6.680 billion in 2001 to N9.101 billion in 2002.
The Chairman of the company Lt. General Mohammed Wushishi said the performance reveals great improvements in UACN's business operations.
According to him: "the profit after tax and minority interest was N1.17 billion, showing a 16 per cent increase over 2001. This growth level was as a result of lower proceeds generated from the sale of assets compared to 2001".
Addressing shareholders at the company's Annual General Meeting held recently in Enugu, Wushishi attributed the company's improved performance to the "Winning With People" initiative (WWP) which enhanced productivity and customer service.
He said that UACN has grown its core businesses of food and distribution while divesting from the pharmaceutical and packaging businesses as planned.
Wushishi said that UACN in 2002 expanded its Mr. Bigg's operations into 25 major cities and grew to 82 restaurants nationwide.
On UACN's growth strategy, the Chairman said: "We are positioning our great company to be more competitive in our chosen markets. Alongside building our people through our WWP initiative, we are committed to rebuilding the marketing culture to deliver superior customer service and innovative products that meet consumer needs."
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