The Nation Newspaper

Category: Equities

  • Chams Holdco eyes new markets on BVN’s decade anniversary

    Chams Holdco eyes new markets on BVN’s decade anniversary

    • Pension portal to remit N150b

    Chams Holding (Chams Holdco) Plc yesterday marked the 10th year anniversary of its execution of the Bank Verification Number (BVN), with a commitment to further deepen the digital landscape with new innovative products and solutions.

    Chams Holdco was the brain behind the BVN biometric solution, an innovation that has become a cornerstone in the financial services industry. Nearly 60 million Nigerians have enrolled on the BVN portal, a major mark on identity verification and security.

    Group Managing Director, Chams Holding (Chams Holdco) Plc, Mrs Mayowa Olaniyan, said the 38-year-old company is continually reinventing itself.

    She noted that the company’s profile was highlighted by the fact that it was the first technology company to be listed on the Nigerian Exchange (NGX) and the second-best performing share on the NGX in 2023.

    According to her, the quest of the company to maintain its leadership position and compete with new breeds on the block has seen it launch a variety of solutions that are effectively capturing market share.

    “One of its exciting products is the PenCentral solution, a platform that resolves long-standing reconciliation challenges related to Pension remittances. After launching the platform in a very short while, it has processed over N14 billion in Pension remittances, positioning itself as a game-changer in the Pension industry. With recent re-engineering efforts, the platform is poised to facilitate the remittance of over N150 billion in Pension this year and aligning with the regulatory drive to deepen micro-pension in Nigeria,” Olaniyan said.

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    She outlined that the group’s recent capacity expansion underscored its commitment to innovation.

    “Chams Holdco now boasts the capability to process an impressive 60,000 financial cards per day, with plans to triple this capacity before the end of 2024, having inked recent deals with its global partners. This expansion not only reflects the company’s dedication to meeting the growing demands of the financial services sector but also positions Chams as a key player in shaping the future of card processing in Nigeria,” Olaniyan said.

    She noted that in a move signaling increased local production capabilities, Chams Holdco has ventured into the telecommunication industry by manufacturing SIM cards locally.

    She added that the strategic initiative not only contributes to the growth of the telecommunications sector but also reinforces Chams Holdco’s commitment to fostering self-sufficiency and technological independence within the Nigerian business landscape.

    “As Chams Holdco continues to innovate and overcome challenges, its remarkable reinvention journey over the past decade serves as a testament to its pivotal role in shaping the evolution of technology and financial services in Nigeria.

    “The company looks ahead with determination, anticipating a future marked by sustained growth, technological advancements, and a continued commitment to driving positive change in the nation’s financial landscape,” Olaniyan said.

  • Pan African payment system expands to North Africa

    Pan African payment system expands to North Africa

    Pan African Payment and Settlement System (PAPSS) has expanded into North Africa as Banque Centrale de Tunisie (BCT) became its member.

    Banque Centrale de Tunisie is the 13th central bank member of PAPSS and it signified BCT’s determination to foster economic growth and development within the country and the African region

     PAPSS, developed by African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, facilitates real-time settlement of intra-African trade and payments, in African currencies, across the continent.

    By uniting central banks from across Africa, PAPSS seeks to address the existing challenges faced by African businesses and individuals in accessing efficient and cost-effective cross-border payment services.

    This value-adding collaboration will allow Tunisian businesses and citizens to benefit from enhanced payment efficiency, reduced transaction costs, and more opportunities to trade and pay with other African countries.

    Governor of Banque Centrale de Tunisie, Mr. Marouane El Abassi said that the inclusion of BCT in the PAPSS system demonstrated the country’s commitment to regional integration within the African continent at an economic and financial level.

    He said the membership supports the government’s efforts, led by the Ministry of Commerce, to integrate Tunisia into the AfCFTA. In 2022, BCT also joined the inter-Arab payment and settlement System (BUNA), in continuation of its commitment to the country’s strategic priorities.

    El Abassi called upon banks and the post office to join this efficient and cost-effective alternative mechanism to better support Tunisian economic operators in their transactions across the African continent.

    He emphasised the importance of opening new commercial opportunities with Africa and expanding Tunisia’s presence in this promising market.

    Minister of Trade & Export Development, Mrs. Ben Rejeb emphasised the significance of joining a platform that can facilitate integration into the formal sector, enhance intra-African exports, and reduce transaction costs and processing times.

    Executive Vice President, Afreximbank, Dr. George Elombi said the group was delighted to welcome Banque Centrale de Tunisie into the PAPSS network as the first central bank to join the system in the North Africa region.

    “As the Pan-African Payment and Settlement System (PAPSS) continues to attract more countries, we are witnessing a growing belief among Africans in their own abilities and potential to drive the development of the continent through their own initiatives.

    “At Afreximbank, we have unwavering confidence that PAPSS will revolutionize the payment landscape within Africa, ultimately benefiting our people. We extend our heartfelt gratitude to Banque Centrale de Tunisie for their trust and decision to join the PAPSS network, as it signifies a significant step towards achieving our shared goals,” Elombi said.

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    Chief Executive Officer, PAPSS, Mr. Mike Ogbalu III said the inclusion of BCT highlighted the growing recognition of PAPSS’s transformative role in simplifying cross-border payments on the continent.

    “As PAPSS continues to expand its membership base, we are encouraged by the commitment of central banks in facilitating trade and investment flows within Africa. This represents another step towards realizing our collective aspirations for an integrated African market,” Ogbalu III said.

    BCT decided to join PAPSS under the commercial bank settlement model that was introduced last year at the Afreximbank Annual Meetings in Accra, Ghana. By adopting this model, BCT will preserve its foreign currency reserves and promote the use of the Tunisian Dinar for cross-border payments with the rest of Africa. This strategic move will undoubtedly enhance the value of its currency in the near future and significantly decrease reliance on foreign currencies.

    With this development, the Tunisian commercial banks can now commence their onboarding process onto the PAPSS system. The team of experts from PAPSS will assist and support Tunisian banks in successfully completing this process.

    Launched two years ago, PAPSS has steadily expanded its footprint in Africa, now establishing itself in four regions. This network includes 13 central banks, with six in the West African Monetary Zone (WAMZ) region (Nigeria, Ghana, Guinea, Gambia, Liberia, and Sierra Leone), three in East Africa (Kenya, Rwanda, and Djibouti), three in Southern Africa (Zimbabwe, Zambia, and Malawi), and one in North Africa (Tunisia). Additionally, it is anticipated that more central banks will join the platform throughout the current year.

  • Access Holdings rebounds as equities gain N980b

    Access Holdings rebounds as equities gain N980b

    • Agbede’s appointment boosts confidence

    Access Holdings’ share price rose for the first time this week yesterday as investors increased demand for the shares of the financial services group.

    Access Holdings’ share priced had dropped on Monday on the first trading session after the announcement of the death of its Group Chief Executive Officer, Dr Herbert Wigwe.

    Wigwe, his wife, son and former Group Chairman of Nigerian Exchange Group (NGX Group) Plc, Chief Abimbola Ogunbanjo died in helicopter crash at the weekend in United States of America (USA).

    The market opened to the news of appointment of Ms. Bolaji Agbede as the Acting Group Chief Executive Officer of Access Holdings Plc on the second trading day, with the shares trading flat, an indication that investors were holding back to fully consider the implications of the announcement.

    Access Holdings’ share price rose by 1.29 per cent to N23.60 per share yesterday in what market analysts said was an indication of positive investors’ sentiment on the timely appointment and general stability of the group.

    The gains by Access Holdings, the third most active stock yesterday, and 27 other stocks pushed the equities market to a net capital gain of N980 billion.

    Market analysts noted that while Agbede’s appointment is subject to the approval of the Central Bank of Nigeria (CBN), the timely appointment was in line with extant capital market rules which disallows leadership vacuum in companies quoted on Nigerian Exchange (NGX).

    They said the decision to promptly get a replacement for the bank deceased bank chief was also in line with the company’s succession policy.

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    President, Bank Customers Association of Nigeria , Dr. Uju Ogubunka said the company acted rightly, insisting that the appointment of Agbede would boost investors’ confidence in the company.

    The All Share Index (ASI)- the value-based common index that tracks all shares quoted on the NGX, rose by 1.76 per cent to close at 103,498.28 points as against its opening index of 101,707.70 points. Aggregate market capitalisation o all quoted equities also rose by N980 billion to close at N56.633 trillion compared with its opening value of N55.653 trillion.

    There were 28 gainers to 25 losers. Unity Bank and Airtel Africa emerged the highest price gainer of 10 per cent each to close at N2.42 and N2,200 respectively. Juli followed with a gain of 9.91 per cent to close at N1.22 per share. FBN Holdings rose by 9.90 per cent to close at N27.20 while Morison Industries appreciated by 9.82 per cent to close at N3.02 per share.

    On the negative side, NCR Nigeria, Thomas Wyatt Nigeria and MeCure Industries led others on the losers’ chart with 10 per cent each to close at N4.32, N2.25 and N9.72 respectively. Meyer followed with a decline of 9.99 per cent to close at N6.22 while BUA Cement shed 9.91 per cent to close at N150 per share.

    The total volume traded rose by 62.19 per cent to 426.861 million units, valued at N12.107 billion, and exchanged in 8,654 deals. Transactions in the shares of FBN Holding led the activity with 54.611 million shares worth N1.479 billion. United Bank for Africa (UBA) followed with account of 47.658 million shares valued at N1.173 billion. Access Holdings traded 46.045 million shares valued at N1.092 billion. Transnational Corporation (Transcorp) traded 30.646 million shares worth N394.903 million while Nigerian Breweries traded 25.488 million shares worth N968.657 million.

  • Beta Glass, brokers pay tributes to Ogunbanjo

    Beta Glass, brokers pay tributes to Ogunbanjo

    Capital market operators yesterday paid tributes to Chairman of Beta Glass and former Group Chairman of Nigerian Exchange Group (NGX Group) Plc, Chief Abimbola Ogunbanjo.

    Ogunbanjo died at the weekend in a helicopter crash in United States of America, alongside Access Holdings’ Group Chief Executive, Dr. Herbert Wigwe, his wife and son.

    The board of Beta Glass, a subsidiary of Frigoglass Group, which Ogunbanjo chaired until his death, said it was shocked by the passing of the chairman who had led the company with thoughtfulness and commitment.

    Chairman of Frigoglass Group Board of Director and Managing Director of Tetrad Capital Partners, Gagik Apkarian, said the group received the devastating news with great sadness.

    “Otunba Ogunbanjo served as Chairman of Beta Glass for eight years with unrelenting commitment. We are grateful for his numerous contributions, thoughtful leadership of the Beta Glass Board, and are extremely shocked that his time was cut short,” Apkarian stated.

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    According to the company, throughout his long and successful tenure on the board of Beta Glass, Ogunbanjo’s leadership has been instrumental in driving the company’s growth to become the largest manufacturer of glass containers and packaging solutions in West and Central Africa.

    Chief Executive Officer, Beta Glass Plc, Darren Bennett-Voci, said the late Ogunbanjo left enduring marks at the company.

    “I had the honor of working closely with him, and the news of his sudden and tragic passing has shocked us all deeply. Abi’s leadership and unwavering dedication leaves an enduring mark on Beta Glass, shaping our journey and inspiring us to continue to strive for excellence. We shall honor his legacy by continuing to uphold the values and vision he instilled in our organisation,” Bennett-Voci stated.

    The company stated that in due time, Beta Glass and the Frigoglass Group will communicate the board’s succession plan.

    “In the interim, the company will continue to receive support from its board of directors,” the company stated.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Oluwole Adeosun, said Ogunbanjo’s sudden death was a great loss to the capital market ecosystem.

    “He was an accomplished corporate lawyer. He played pivotal role during the demutualisation of the former Nigerian Stock Exchange. He was a cerebral corporate lawyer with robust industry experience. His contributions to market development cannot be glossed over. He shall be sorely missed,” Adeosun said.

  • Naira exchanges at N1,534 to dollar at official market

    Naira exchanges at N1,534 to dollar at official market

    The naira yesterday exchanged at N1,534.39 to dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) – the official market.

    The exchange rate fell to N1,490 to dollar at the parallel market with traders expecting further weakness in the coming days as dollar shortages worsen.

    That was the second time in many months that the official exchange rate was weaker than the parallel market rate.

    The naira had on January 30, exchanged at N1,482.57 to dollar at the NAFEM – the official market.

    The exchange rate fell to N1,460 to dollar at the parallel market over persistent dollar scarcity.

    The local currency has continued to depreciate at both official and parallel market over persistent dollar scarcity.

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    Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

    Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

    “The problem is that dollars are scarce in the market. People are not bringing dollars and demand is so high that is why the price is going up,” a street trader told Business Day on Tuesday morning.

    Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented  consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

    Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

    On ways to strengthen the naira, he advised that in the short-term, there is  need to find non-market damaging  ways to increase the supply of hard currencies and reducing the demand for same.

    He said that insecurity  hampering food production needs to be tackled with a sense of urgency and effectiveness.

    “Priority should be given through deploying pragmatic incentive programs to drive  up the volume of food products for domestic consumption and industrial use to reduce our food import bill. All government consumption expenditures requiring the use of hard currencies should be suspended indefinitely, starting now,” he advised.

  • CIBN reaffirms NDIC’s roles in banking system

    CIBN reaffirms NDIC’s roles in banking system

    • CIBN, NDIC partner on certification

    The Chartered Institute of Bankers of Nigeria (CIBN) has affirmed the important roles being played by the Nigeria Deposit Insurance Corporation (NDIC) in building confidence and stability in the Nigerian banking industry.

    President, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Ken Opara called on Nigerian leaders to acknowledge the notable contributions of NDIC as a deposit insurer over the years, by promoting depositors’ confidence in the Nigerian banking industry.

    He noted that, in furtherance to boost the confident of bank customers, the board of NDIC has now been empowered to vary upward the maximum amount which a depositor can receive from the Corporation in the event of a failed insured institution, in line with prevailing economic realities.

    According to him, the introduction of public policy objectives is in line with International Association of Deposit Insurers (IADI) core principles.

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    He noted that the NDIC has continued to uphold unwavering commitment to the highest ethical standards and compliance with anti-corruption laws and regulations, as it proudly secured the top position in the Independent Corrupt Practices and Other Related Offences Commission (ICPC) 2023 Ethics and Integrity Compliance Scorecard (EICS).

    He said this achievement marked the second time that NDIC has achieved the first place, previously having been ranked first in the 2021 EICS.

    He added that the NDIC was also a recipient of the “Platinum Level Award for Outstanding Performance in Corporate Governance and Service Delivery” by the Bureau of Public Service Reform on September 7, 2022.

    Such remarkable accomplishments, he said, underscored NDIC’s steadfast dedication to upholding integrity, transparency, and accountability in all facets of its operations.

    According to him, as part of efforts to bridge the knowledge gap, build capacity and create more awareness about deposit insurance scheme, it worthy to note that NDIC and CIBN have forged a collaboration to jointly develop and run a Deposit Insurance Scheme Certification Programme.

    Opara spoke at a retreat which was a jointly organized by the Senate Committee on Banking, Insurance and Other Financial Institutions and NDIC.

    He explained that the certification programme is targeted at industry practitioners, the academia as well as the general public.

    He said the programme will commence in October this year, imploring all practitioners and all stakeholders to embrace this programme in view of the inherent benefits.

    Opara commended the Senate Committee led by Senator Adetokunbo Abiru for putting together the retreat to deepen the understanding of the principles and practice of deposit insurance so as to facilitate the effective discharge of legislative oversight over the deposit insurance function in Nigeria.

    He said that the proactive steps taken by the Committee to comprehensively review the extant laws within the financial services sector, aimed at fostering economic sustainability and growth, are indeed commendable.

    He finally advocated for NDIC to continue to engage robust mechanisms to monitor the financial health and stability of insured financial institutions.

    According to him, regular examinations, stress testing, risk assessments and preventive steps that can help identify potential vulnerabilities and prevent banks from going down.

    He reassured the Senators and the management of NDIC of the resolve of CIBN to continue to work closely with all stakeholders in the industry not only to ensure the continuing success of the deposit insurance scheme in Nigeria but also to continue to guarantee the safety and stability of the Nigerian banking sector.

  • Equities reopen with N101b gain

    Equities reopen with N101b gain

    Nigerian equities market reopened yesterday with sustained bullish sentiments as investors stepped up bargain-hunting ahead of release of audited accounts and dividend announcements.

    Benchmark indices at the Nigerian Exchange (NGX) rose by 0.18 per cent, equivalent to net capital gain of N101 billion.

    The All Share Index (ASI) – the value-based common index that tracks all share prices at the NGX, rose from its opening index of 101,858.37 points to close at 102,042.32 points.

    Aggregate market value of all quoted equities also increased from its opening value of N55.735 trillion to close at N55.836 trillion.

    With 32 gainers to 23 losers, the positive overall market position was driven largely by gains across the sectors, especially large-cap stocks such as Geregu Power, BUA Foods, Nigerian Breweries and UAC of Nigeria.

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    On the positive side, Chams Holdings, NCR Nigeria and Royal Exchange emerged the highest gainer with a gain of 10 per cent each to close at N2.75, N4.40 and 77 kobo respectively. SUNU Assurance followed with a gain of 9.50 per cent to close at N1.96 while The Initiates Plc (TIP) added 9.43 per cent to close at N2.32 per share.

    On the negative side, Infinity Trust Mortgage Bank led with a loss of 9.90 per cent to close at N7.19. John Holt followed with a drop of 9.88 per cent to close at N2.19. PZ Cussons Nigeria declined by 9.87 per cent to close at N27.85 per share. May & Baker Nigeria dipped by 9.80 per cent to close at N6.35 while Deap Capital Management and Trust depreciated by 7.14 per cent to close at 65 kobo per share.

    The momentum of activities slowed down with turnover dropping by 24.68 per cent to 242.433 million shares valued at N 5.125 billion in 8,715 deals. Access Holdings led the activity chart with 24.899 million shares worth N575.101 million. Veritas Kapital Assurance followed with 24.182 million shares valued at N17.455 million. Guaranty Trust Holding Company (GTCO) traded 21.173 million shares valued at N841.255 million. FBN Holdings (FBNH) traded 17.239 million shares worth N439.390 million while Transnational Corporation (Transcorp) traded 17.083 million shares worth N229.225 million.           

    Market analysts at United Capital Plc said they expected a mixed performance at the stock market.

    “Also, given the market’s anticipation of a hawkish stance by the Monetary Policy Committee at its next meeting, we expect investor focus to shift towards the fixed-income markets. Nonetheless, crucial corporate disclosures such as dividend declarations are set to move the market,” United Capital stated.

  • Investors net N902b gain as stock market regains rally

    Investors net N902b gain as stock market regains rally

    • Scramble for banks’ shares on forex reforms

    After two days of consecutive decline, Nigerian equities regained their rally as investors increased demand for quoted shares amidst expectations of full-year dividends.

    The recovery at the market was also accentuated by noticeable increase in demand for banks’ shares. Most analysts expected the ongoing foreign exchange (forex) reforms to continue to impact banks’ earnings positively in the meantime.

    Nigeria’s largest banks including Guaranty Trust Holding Company (GTCO), Zenith Bank, FBN Holdings, Access Holdings and United Bank for Africa (UBA) were among the highest gainers yesterday, rising by nearly the highest allowable daily percentage change of 10 per cent. Most other banks also appreciated.

    With extreme volatility in the forex market, Nigeria is furthering reforms to block leakages that allow for high speculation and abuse of the open-market system adopted in replacement of the previous government-determined system.

    The deadline for banks to sell excess forex expired yesterday with the Central Bank of Nigeria (CBN) warning of immediate sanctions for banks that violate forex rules. 

    Benchmark indices at the Nigerian Exchange (NGX) indicated average gain of 1.63 per cent yesterday, equivalent to net capital gain of N902 billion.

    With nearly three gainers for every loser, the recovery at the market was driven by widespread positive sentiments.

    The rally beat several analysts’ projections of continuing bearish trading, underlining the strong expectation on the impending release of the audited reports and accounts of most quoted companies and declaration of dividends.

    Extant rules at the Nigerian market require quoted companies to release their audited report and accounts not later than 90 days after the end of the year. Companies are also expected to release their quarterly report not later than 30 days after the end of the period.

    Most companies at the NGX use the Gregorian calendar as their business year, with the financial year ending December 31. Thus the deadline for the submission of the quarterly report is January 30, 2024 and for the full-year report, March 30, 2024.

    The All Share Index (ASI)-the value-based common index that tracks all share prices at the NGX, rallied 1,647.79 points or 1.63 per cent to close at 102,802.25 points as against its opening index of 101,154.46 points.

    Aggregate market value of all quoted equities rose by N902 billion from its opening value of N55.358 trillion to close at N56.260 trillion.

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    There were 53 gainers to 18 losers. Chams Holding Company, Guaranty TCO, Veritas Kapital Assurance and Caverton Offshore Support Group emerged the highest price gainer of 10 per cent each to close at N2.64, N40.70, 66 kobo and N1.87 respectively, per share.  NASCON Allied Industries followed with a gain of 9.98 per cent to close at N67.75, while Zenith Bank advanced by 9.97 per cent to close at N38.60, per share.

    For banks, FBN Holdings and Access Holdings rose by 9.91 per cent each, UBA rallied by 9.84 per cent, Unity Bank rose by 9.87 per cent, Fidelity Bank appreciated by 9.86 per cent, FCMB Group gained 9.50 per cent, Jaiz Bank rose by 8.88 per cent while Wema Bank closed higher by 8.0 per cent.

    On the negative side, Deap Capital Management and Trust led the losers with a drop of 9.88 per cent to close at 73 kobo. CWG followed with a decline of 9.87 per cent to close at N6.85. R.T. Briscoe Nigeria shed 9.86 per cent to close at 64 kobo per share. University Press lost 9.76 per cent to close at N3.33 while McNichols depreciated by 9.43 per cent to close at N1.44 per share.

    The momentum of activities also improved as turnover rose by 14.93 per cent to 861.005 million shares valued at N12.155 billion in 12,851 deals. Universal Insurance led the activity chart with 113.758 million shares worth N42.514 million. Transnational Corporation (Transcorp) followed with of 91.016 million shares valued at N1.156 billion. Zenith Bank traded 74.317 million shares valued at N2.761 billion. United Bank for Africa (UBA) traded 69.178 million shares worth N1.717 billion while Veritas Kapital Assurance traded 58.739 million shares worth N35.954 million.

  • Airtel Africa to buy back $100m shares

    Airtel Africa to buy back $100m shares

    Airtel Africa Plc plans to launch a share buyback programme next month under which the telecommunication company will reacquire not less than $100 million worth of shares over the next 12 months.

    The board of Airtel Africa yesterday indicated that the $100 million share buyback to be launched in March 2024 was due to the holding company’s substantial cash accretion and its consistent strong cash generation.

    The share buyback was part of the highlights of the third quarter report of the company which showed considerable increases in customer base and penetration.

    According to the board, the company has made significant progress in recent years to reduce leverage and strengthen its balance sheet, thus it is in good position for the share buyback.

    “The board believes that repurchasing its own shares is an attractive use of its capital in light of the group’s strong long term growth outlook. The programme will be executed using its cash reserves and in accordance with applicable securities laws and regulation,” the company stated.

    The report for the nine-month period ended December 31, 2023 showed that total customer base grew by 9.1 per cent to 151.2 million. The penetration of mobile data and mobile money services continued to rise, driving a 22.4 per cent increase in data customers to 62.7 million and a 19.5 per cent increase in mobile money customers to 37.5 million.  Constant currency ARPU growth of 10 per cent was primarily driven by increased usage across all segments.

    The report showed that mobile money transaction value increased by 41.3 per cent in constant currency, with third quarter annualised transaction value of $116 billion in reported currency.

    Group Chief Executive Officer, Airtel Africa Plc, Olusegun Ogunsanya said the company remained focussed on the execution of its growth strategy.

    He noted that with its strong operational execution, the company has ensured that it continues to see sustained, positive growth momentum across the business, despite the inflationary and currency headwinds.

    “Demand remains resilient, highlighting the vital nature of the voice, data and mobile money services we provide to our customers across the region, and has resulted in a strong 20.2 per cent constant currency revenue growth over the period, with an increase in EBITDA margins.

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    “This strong operating performance has limited the impact that currency movements have had on the group. In this regard, whilst further currency devaluation, particularly in Nigeria, has weighed on our reported financial performance, it will not affect the execution of our growth plans.

    “I am pleased to note that our sustained focus on capital allocation priorities will enable us to fully repay HoldCo debt when due in May 2024, ensuring the continued success of our balance sheet de-risking strategy. This will allow us to continue investing in our strategic priorities to provide affordable and reliable services to customers across our markets, whilst also enabling us to capitalise on new business opportunities, such as our new data centre business, Nxtra by Airtel, which we launched in December.

    “In light of our consistent strong operating performance and given current leverage, the Board intends to launch a share buy-back programme of up to $100m, starting early March 2024 over a 12-month period. We continue to be well positioned to deliver on the attractive growth opportunities our markets offer and despite the challenge of rising diesel prices, ongoing currency devaluation and inflationary pressures across some of our markets, we remain focussed on margin resilience,” Ogunsanya said.

    Airtel Africa had on January 2, 2024 announced the retirement of Ogunsanya and the appointment of Sunil Taldar, who joined Airtel Africa in October 2023 as Director – Transformation, as Chief Executive Officer (CEO). Following a transition period, Sunil Taldar will be appointed to the board as an Executive Director and assume the role of CEO on July 1, 2024, at which time Ogunsanya will retire from the board and the company.

  • Cadbury Nigeria improves profitability despite forex loss

    Cadbury Nigeria improves profitability despite forex loss

    • ’Best employer in Nigeria’

    The board of Cadbury Nigeria Plc has said that ongoing growth strategies have been yielding impressive results with the company’s operating profit rising by 4,228 per cent to N8.4 billion in 2023.

    Key extracts of the unaudited report and accounts of Cadbury Nigeria for the year ended December 31, 2023 showed that the company recorded a turnover of N80.38 billion in 2023, 46 per cent increase on audited report of N55.21 billion in 2022. Gross profit rose from N7.72 billion in 2022 to N17.79 billion in 2023, an increase of 130 per cent. Operating profit jumped from N194.06 million to N8.4 billion. However, with foreign exchange losses, the company closed 2023 with loss of N27.63 billion as against pre-tax profit of N1.3 billion in 2022.

    Managing Director, Cadbury Nigeria Plc, Oyeyimika Adeboye, said the company has sustained its current growth trajectory, despite the difficult operating environment in the country, due to its resilience as well as focus on revenue and cost management.

    According to her, the massive devaluation of the naira impacted negatively on businesses particularly operators in the fast-moving consumer goods (FMCGs) sector that rely on imported inputs.

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    She noted that the increase in the company’s operating profit was an indication that the growth strategies that it has put in place are yielding fruit.

    “We operate in a challenging environment that requires a degree of creativity and tenacity to remain in business. Despite the strong economic headwinds we faced during the year under review, Cadbury Nigeria remains committed to delivering value for its various stakeholders and we shall continue to put our consumers at the heart of what we do,” Adeboye said.

    She pointed out that Cadbury Nigeria was rated number one top employer in Nigeria by the Amsterdam-based Top Employers Institute recently. Cadbury Nigeria was rated number two last year in Nigeria and recognised with the prestigious Top Employer certification as a Regional Top Employer in Africa, for the third consecutive year.

    Adeboye described the award as a milestone and assured that the company remained focused on the future with commitment to excellence and innovation.

    “The well-being of our people will continue to drive us forward. We are excited about the opportunities that lie ahead and the positive impact we make together,” Adeboye said.

    She added that the company is focused on nourishing and delighting consumers with the right snacks and remains committed to its stakeholders.

    Human Resources Director, Cadbury Nigeria, Wole Odubayo, dedicated the award to the employees of the company.

    “You are the force behind our success, and we are immensely proud to have you as part of the Cadbury Nigeria family,” Odubayo said.

    Top Employers Institute is the global authority on recognising excellence in people practices. Through the institute’s certification programme, participating companies can be validated, certified, and recognised as an employer of choice.

    The Top Employers Institute programme certifies organisations based on the participation and results of their HR Best Practices Survey. This survey covers six HR domains consisting of 20 topics including people strategy, work environment, talent acquisition, learning, diversity, equity and inclusion, wellbeing and more. Being certified as a Top Employer showcases an organisation’s commitment to creating a better work environment for its employees.

    Corporate Communications and Government Affairs Manager for West Africa, Cadbury Nigeria, Frederick Mordi, pointed out that the company had also won awards in five categories at the Chartered Institute of Personnel Management (CIPM) Awards, which took place in Abuja. The award categories were strategic HR initiatives; talent acquisition; employee service and administration; diversity and inclusion; and HR policy development and implementation.

    Mordi added that Cadbury Nigeria also received three awards at the HR People Magazine Awards in 2023.

    Cadbury Nigeria is a subsidiary of Mondelez International, which owns 74.99 per cent majority equity stake.