Julius Berger Nigeria Plc’s 55th Annual General Meeting: Navigating Economic Headwinds and Embracing Strategic Diversification
Julius Berger Nigeria Plc, a leading construction company, recently convened its 55th Annual General Meeting (AGM), providing a platform to review the company’s performance in the preceding year and outline strategic directions for the future. The AGM highlighted the company’s resilience in the face of challenging macroeconomic conditions, its commitment to shareholder value, and its proactive approach to diversification and sustainable growth. A significant announcement at the AGM was the declaration of a total gross dividend payout of N5.2 billion, translating to N3.25 per 50 kobo ordinary share, underscoring the company’s commitment to rewarding its shareholders despite the prevailing economic headwinds.
The Chairman of Julius Berger Nigeria Plc, Goni Sheikh, acknowledged the significant impact of persistent inflation, currency devaluation, and high lending rates on the company’s financial results. These factors, coupled with security challenges and unrest in certain parts of the country, contributed to rising construction costs, creating a challenging operational environment. However, Sheikh emphasized the company’s proactive approach to risk mitigation and its unwavering focus on maintaining steady operations. He highlighted the company’s "safety first" ethos as a cornerstone of operational efficiency, contributing to risk reduction and improved productivity. This commitment to workplace safety has enabled Julius Berger to minimize incidents and maintain a strong safety record. Sheikh reiterated the company’s dedication to further strengthening its Health, Safety, and Environment (HSE) performance for the benefit of all stakeholders. Despite the macroeconomic headwinds, Julius Berger successfully met its revenue and profitability targets in 2024, demonstrating its financial resilience and strong project execution capabilities.
Dr. Peer Lubasch, the Managing Director, provided a detailed overview of the company’s operational performance and strategic direction. He acknowledged the persistent and compounding pressures on the Nigerian economy, including currency devaluation, foreign exchange scarcity, escalating construction costs, surging inflation, increased fuel prices, high lending rates, global market uncertainties, and domestic security concerns. These factors combined to create a highly challenging and unpredictable business environment, particularly for the construction sector. However, Lubasch emphasized the company’s ability to transform challenges into opportunities, highlighting Julius Berger’s resilience and adaptability in navigating the headwinds. He attributed the company’s success to its focus on efficiency and sustainable growth. This strategic approach enabled Julius Berger to achieve record-high revenue, expand its asset base, and maintain stability across both new and ongoing projects during the reporting year.
A key element of Julius Berger’s strategic direction is its focus on regional diversification. Lubasch announced significant progress in this area, highlighting two contracts secured in the Republic of Benin. This expansion beyond Nigeria’s borders represents a strategic move to broaden the company’s market reach and mitigate risks associated with operating solely within the Nigerian market. Lubasch expressed confidence in the company’s future prospects, attributing potential success to the disciplined execution of its strategy, agile leadership, dedicated teams, and the company’s core values of excellence, responsibility, courage, and collaboration. He reaffirmed Julius Berger’s commitment to remaining a future-ready, high-performing organization that clients can rely on and shareholders can trust.
The AGM also highlighted the company’s commitment to sustainable development and corporate social responsibility. Julius Berger emphasized its focus on environmental protection, community engagement, and ethical business practices. The company underscored its commitment to contributing positively to the communities where it operates, promoting sustainable development, and creating value for all stakeholders. The company’s sustainability initiatives encompass environmental protection, social investment programs, and ethical business practices.
In conclusion, the 55th Annual General Meeting of Julius Berger Nigeria Plc provided valuable insights into the company’s performance, strategic direction, and commitment to sustainable growth. Despite navigating a challenging economic environment, the company demonstrated resilience, achieving record-high revenue and maintaining stability across its project portfolio. The company’s commitment to shareholder value was underscored by the declaration of a substantial dividend payout. Looking ahead, Julius Berger’s focus on regional diversification, operational efficiency, and sustainable development positions the company for continued success in the face of ongoing challenges and emerging opportunities in the construction industry. The company’s strong leadership, dedicated workforce, and commitment to its core values provide a solid foundation for future growth and value creation for all stakeholders.
