CWG Plc Increases Shareholder Dividend Amid Ambitious Growth Plans
Shareholders of CWG Plc have endorsed a final dividend of 70 kobo per share for the fiscal year ending December 31, 2025. This marks a substantial increase of 79 percent from the previous dividend of 39 kobo. The decision was reached during the company’s 21st Annual General Meeting in Lagos, where the Board’s recommendations received commendations from shareholders, who recognized the Group’s consistent profitability despite challenging macroeconomic conditions.
Board Chairman Highlights Confidence in Future Growth
Mr. Philip Obioha, Chairman of the Board of Directors, attributed the dividend increase to this year’s strong performance and the Board’s optimism regarding future developments. He expressed confidence in CWG’s earnings trajectory, stating that the recommendation reflects a commitment to delivering consistent returns for shareholders.
Strong Financial Performance Underpins Dividend Decision
The financial figures support the Board’s confidence. The group reported an annual pre-tax profit of N7.8 billion, a remarkable 78 percent increase from N4.42 billion in 2024. Additionally, revenue surged by 41.4 percent, rising from N46.35 billion to N65.56 billion during the same period.
Customer-Centric Strategies Drive Success
Obioha credited the company’s success to a customer-centric strategy focused on market responsiveness, bolstered by investments in operational efficiency. He emphasized that while increasing sales is crucial, inefficient operations can undermine profitability. The company is committed to optimizing processes to deliver enhanced value to its customers.
Regional Performance Fuels Business Growth
Group Managing Director and CEO, Mr. Adewale Adeipo, noted that efficiencies have been cultivated across CWG’s regional presence. He pointed out that the company’s strong performance across various African markets has been instrumental, with Nigeria as the largest contributor to revenue. In Ghana, improvements in governance, compliance systems, and the reopening of the CWG Academy have attracted new customers and strengthened regulatory positions. Meanwhile, Uganda celebrated a landmark year through strategic partnerships and new market entries, and Cameroon saw renewed growth across its key sectors.
Cost Management and Governance Strategies Enhance Profitability
In the face of economic volatility, management has focused on cost discipline by leveraging existing assets rather than pursuing aggressive expansion. Adeipo highlighted that this strategic approach, begun two years ago, has played a significant role in enhancing profitability. The company also exercised stringent governance over foreign exchange exposure through hedging strategies and robust internal controls.
Proactive Measures Address Inflation Pressures
Chief Operating Officer Afolabi Sobando underscored that although inflation and rising operational costs present challenges, proactive cost management measures are mitigating the pressure. Sobando acknowledged the broader economic impacts but noted that the management’s focus on cost efficiency ensures sustainability.
Ambitious Future Growth Plans
Looking ahead, Obioha indicated that CWG aims for significant growth over the coming years, targeting the establishment of a $500 million business. The company plans to benchmark its financials against the US dollar to hedge against Naira inflation and has identified a systematic expansion strategy in East Africa as a priority. Adeyipo emphasized that successful digital transformation requires an interconnected ecosystem of infrastructure, skills, trust, and execution, which aligns with CWG’s strategic vision.
