Soft drinks maker, Seven-Up Bottling Company Plc Thursday declared a dividend of N2.20 per share for the year ended March 31, 2013, showing an increase of 10 above the N2 paid in the previous year.
The dividend, which amounts to N1.409 billion, would be paid out of the N2.856 billion profit after tax (PAT) the company reported in its audited results for the year made available by the Nigerian Stock Exchange (NSE).
The results showed that Seven-Up recorded a revenue of N64.1 billion, up by seven per cent from N59.9 billion posted in the corresponding period of 2012. Profit before tax rose by 28 per cent from N2.558 billion to N3.262 billion in 2013.
However, a reduction in taxation and some other expenses, led to the company recording a higher growth of 70 per cent in PAT from N1.678 billion to N2.856 billion.
The shares of Seven-Up Bottling Company declined by 2.03 per cent to close at N74.35 per share yesterday as investors reacted negatively to the results. Some analysts said considering the current price of the stock and the N2.20 dividend, which translated into a dividend yield of 2.9 per cent, there was no incentive to move the shares higher.
Seven-Up Bottling shares have so far appreciated by 77 26 per cent, thereby outperforming the NSE All-Share Index(ASI), which has appreciated by 36.3 per cent.
Meanwhile, the market maintained its bullish outlook for the fourth day as investors’ reactions to half-year corporate results continued to spur demand for equities.
The ASI appreciated by one per cent from 37,914.33 to close at 38,291.07, while market capitalisation added N119 billion to close at N12.126 trillion.
A total of 38 stocks appreciated compared with 19 that lost value. Lafarge Cement WAPCO Nigeria Plc led the price gainers with N5.00 to close at N110 per share.
Guinness Nigeria Plc trailed with N4.99 to close at N250 per share, just as Julius Berger Nigeria Plc and Okomu Oil Palm Plc added N3.70 and N3.41 to be at N83.69 and N47.91 respectively.
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