By NKIRUKA NNOROM

Shareholders of confectionery manufacturing giant, Unilever Nigeria Plc, are being given more reasons to smile as the company’s directors have proposed a cash dividend of N1.40 for the financial year ended 31st December, 2011, even as profits for the year grew by 31.4 per cent.

The dividend which is 27.3 per cent increment over N1.10 declared the previous year, would be paid from retained profit of N5.49 billion recorded within the year, the company said in a filing with the Nigerian Stock Exchange (NSE) on Tuesday.

According to the notice, only shareholders whose names appear on the register of members as at the close of business between April 10 and 13, will benefit from the reward being proposed, while payment will be made on May 11, 2012.

The results released indicated that except for cost of sales, distribution expenses and trade debtors which witnessed downward movement within the period, other indicators notched up.

A breakdown showed that profit after tax which stood at N4.18 billion in 2010 rose by 31.4 per cent to N5.49 billion in the review period. Similarly, the pre-tax profit went up by almost the same margin, rising to N7.98 billion from the previous N6.15 billion, a 29.8 per cent increase.

The turnover went up by 16.9 per cent to N54.72 billion, as against N46.81 billion posted in equivalent period of 2010.