Unilever Ghana PLC has declared a dividend for the first time since 2019, offering shareholders 40 pesewas per share.

This payout, totaling GH¢25 million, will be distributed on June 24, 2024, to shareholders listed in the company’s register as of May 22, 2024, the company revealed during its Annual General Meeting (AGM).

The announcement comes on the back of a significant financial turnaround for the year 2023, with the company reporting a profit of GH¢141 million, a substantial increase from the GH¢15 million recorded in the previous year.

The Chairman of the Board of Directors, Edward Effah attributed this impressive performance to a 44 percent increase in turnover driven by price hikes, product innovation, and investment in brand equity.”I would like to thank the group’s employees, led by an exceptional management team, for delivering an outstanding performance in 2023 by combining remarkable growth in margins with record cash generations,” said Mr. Effah.

In addition to the financial success, Unilever PLC, the parent company, agreed to write off GH¢75 million in royalties due from 2019 to 2021.

Mr. Effah explained that this decision was necessary as future cash flows from Unilever Ghana were not expected to cover historical and future royalties and dividends.

Mr. Chris Wulff-Caesar, Managing Director of Unilever Ghana, highlighted the company’s sectoral growth.

“The write off has become necessary because the future cash flows of Unilever Ghana PLC are not expected to be sufficient to pay historic and future royalties charges and dividends,” he said.

The personal care category saw an underlying sales growth of 45.3 percent, while the beauty and well-being category experienced a remarkable 110 percent increase. The home care category grew by 30.7 percent, and the nutrition business group reported a 90 percent growth in underlying sales.

Mr. Sampson Ashong, the General Secretary of the Shareholders Association, expressed satisfaction with the company’s financial turnaround and the dividend payment. “We don’t pay this year and next year we are back to non-payment of dividends. It was for that reason that we wanted them to tell us the pragmatic steps they are taking to ensure that we have continuous dividends,” he said in an interview.

The Unilever Ghana share price closed trading at GH¢12 last Friday.