Barely one week after paying an interim dividend, PZ Cussons Nigeria Plc on Wednesday recommended a special dividend of N1.30 per share for the shareholders.
In a notification to the Nigerian Stock Exchange (NSE), the company said its board of directors at its recent meeting resolved to recommend a special dividend of N1.30, to be paid from the general reserve of the company.
However, the payment will be made after the shareholders have passed the necessary resolution at an extra-ordinary general meeting to be held in Lagos March 13. The dividend would be paid on March 17, 2014. Shares in the conglomerate rose 4.9 per cent to close at N37.26 per share following investorsâ€™postive reaction to the special dividend announcement.
PZ Cussons, for the first time, declared an interim dividend of about 20 kobo last month after posting 4.7 per cent in revenue for the half year ended November 30, 2013, rising from N31 billion in 2012 to N32.46 billion in 2013. Profit before tax rose 53 per cent to N3.1 billon from N2 billion, while profit after tax went up by same margin, rising from N1.515 billion to N2.317 billion.
The company had explained that the recommendation of the interim dividend was response to request by shareholders in that regard. Also, it was gathered that the payment of interim dividend aligns with the practice of other companies in the industry where PZ Cussons operate and its United Kingdom (UK) parent company.
Assessing the performance half year results of PZ Cussons, analysts at Cordros Capital Limited, an investment banking firm, had said the company recorded a revenue growth of 15.45 per cent quarter-on-quarter.
They said considering the strong competition in the Nigerian fast moving consumer goods (FCMG) space as well as challenges facing the Northern sphere of the companyâ€™s business in recent time, they believe this growth is commendable and could be linked to increased demand for its products.