How Beta Glass performed in 2017

Nigeria’s foremost glass maker Beta Glass Plc recorded 16.2 per cent turnover in the financial year ended December 31, 2017, as sales surged from N19.091 billion to N22.186 billion.

Profit and dividend also followed in the positive trajectory as profit before tax (PBT) rose from N5.215 billion in 2016 to N5.854 billion in 2017. Similarly, profit after tax (PAT) increased from N3.799 billion in 2016 to N4.115 billion in 2017.

At the Annual General Meeting (AGM) held in Lagos, Abimbola Ogunbanjo, chairman of Beta Glass Plc, disclosed that the board recommended a gross dividend of N1.07 per share, subject to the deduction of withholding tax. This, according to him, represented a 9 per cent increase in value from last year’s dividend and was consistent with the company’s dividend policy to pay out 13 per cent of net profit after tax.

Ogunbanjo, who is also the president of the Council of the Nigerian Stock Exchange (NSE), stated that shareholders’ equity improved by N3.7 billion when compared with the previous year, arising from strong profit and adjusted for the dividend distributed during the year.

“The company’s cash-flow was managed efficiently given the difficult conditions and capex spends, which were significantly higher compared to prior year, due to the impending furnace cold repair,” Ogunbanjo said.

He said it was comforting to have seen Nigeria’s economy recover from recession and added that with stable oil production due to relative peace in the Niger Delta region, oil exports would rise, with attendant positive impact on the economy.

Ogunbanjo pointed out that with the opening of the Importers and Exporters (I&E) foreign exchange window in the second quarter of 2017, the Nigerian equities market appeared to have regained confidence of foreign portfolio investors, who actively supported the resurgence of the market.

He, however, stated that the socio-economic impact of the forthcoming 2019 election cannot be overlooked, especially as it comes with great uncertainty.

“It is hoped that the elections would be handled with great care in order that its impact does not affect the recovery of the economy,” he cautioned.

The company had a stellar performance and exciting year, characterised by a solid financial performance, which has recently seen Beta Glass emerge in the NSE 30 Index, the influential index that tracks the 30 most capitalised companies at the Stock Exchange.

Beta Glass is a subsidiary of Frigoglass Industries (Nigeria) Limited, which also exports glass packaging materials to three countries. The company has manufacturing plants in Ughelli, Delta State, and Agbara, Ogun State, with three furnaces that produce in excess of 600 tons of glass containers per day.

Breweries account for 42 per cent of its total glass unit sales while soft drinks occupy 24 per cent. Wine and spirits make up 18 per cent just as pharmaceuticals and cosmetics’ patronage is estimated at 16 per cent.

ODINAKA ANUDU