ONWARD PAPER MILL PLC POST 89% PBT, DECLARES 6K DIVIDEND
The result of the strategic turnaround initiative of Onward Paper Mill PLC at her 36th Annual General Meeting held recently in Lagos showed 87% increase in Profit before Tax, 22% increase in Gross Revenue and 67% increase in her earning per share.
The financial year end (FYE) report also revealed that the company’s turnover has increased to 1.850billion, which shows over 37% growth as against 1.350billion that was posted in the preceding year whilst the shareholders fund had risen to N1.641 billion from 1.548billion
The net operating profit rose to N 267.9million up by 42% from N188.7million recorded in the corresponding period of last year while the profit before tax increased to N136.3million, up by 87% from the last year result of N72.8million.
According to the CEO of Onward paper Mill PLC, Mr. Kunle Obagun; the result is an indication of a bright future for Onward Paper Mill PLC as the financial year has shown in all ramifications that the company has become a success story in the real sector.
He further explained that the success recorded can also be seen in the numerous awards won by the company in the year under review , which includes the best Agfa Consumable Award, Trade Leaders’ Club Quality Award and West Africa’s Best Quality Paper Company to mention a few.
In consonance with the remarkable achievement, shareholders at the AGM agreed to a resolution declaring 6k dividend per share.
Onward, according to the CEO, is at the consolidation stage of her strategic turn around project. Even though she is presently rated the 6th largest producer of exercise book in Africa with the production of 3 million copies daily, operation is at 50% of her capacity due to poor infrastructure in the Country.
Speaking on the future direction of the company, the CEO informed that Onward is making steady inroads in the West African sub region through her market expansion strategy consolidating on the gains of free access in the ECOWAS states.
While addressing questions from shareholders, he highlighted that the company is working on the modalities of being listed on the stock exchange market in the next two years which will further provide the necessary resources for expansion.
It would be recalled that in 2006, over three billion naira was invested in machinery and manpower to re-engineer the business and sustain market leadership through improved service delivery, low cost channel distribution and customer relationship management.