Unilever Nigeria Plc. has re-assured its shareholders of substantial returns for the second quarter of 2010. The food and confectionery giant, in a performance document released at the Nigerian Stock Exchange (NSE) on Wednesday, projected 10 per cent earnings across board. According to the projection for the second quarter, which ends on June 30, 2010, the company estimated its profit after tax to hit N2.74 billion or 10.03 per cent growth.
On annual basis, Unilever also projected a earning of about N5.49 billion profit after tax. The projected sales figures stood at N24.41 billion or 15 per cent growth while on annual basis, the company forecast a turnover of N48.82 billion. According to the forecast, profit before tax is also projected to hit N4.03 billion by June and annual profit before tax at N8.07 billion. Meanwhile, the National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), has urged quoted companies to back their projections with proof.
According to the National Coordinator of ISAN, Mr Sunny Nwosu, investors appear to be distancing themselves from quoted companiesâ€ projections because some lacked fundamentals.
Nwosu explained: â€œThis is because the recent approach of companies cannot be justified following challenges in the economy. We are not blind investors. We understand the dynamics of the economy, especially the Nigerian economy.
â€œNo company can fool us with earning projections that are not backed with visible fundamentals, especially after what we have gone through in the last two years.â€ Nwosu, who declined to comment on any of the quoted companiesâ€ projections, said that ISAN members would not be caught unawares.