The Nation Newspaper

Category: Equities

  • Fidson Healthcare assures shareholders of continuous profitability

    The Board of Directors of Fidson Healthcare Plc has assured shareholders that the company has invested in adequate capacity that would ensure that it remained profitable in spite of the challenges in the macro-economy and the pharmaceutical sectors.

    Addressing shareholders at the annual general meeting at the weekend at Sheraton Hotels and Towers, Ikeja, Lagos, Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, said improvement in operating facility and strategic management of resources would ensure that the company continues to be profitable.

    He said the company’s biotech plant, which  commenced manufacturing activities in May 2016, has tremendously increased the company’s production capacity and placed the company in better stead to meet the growing need for quality pharmaceutical products in Nigeria and beyond.

    “With the improved operating facility and continued prudent management of resources, the board and management are optimistic that the company will continue to be profitable,” Ohiwerei assured.

    He noted the constraints being faced by companies in Nigeria, especially in the areas of declining value of Naira, high inflation and increasing cost of production, but reassured shareholders and stakeholders that the directors of the company will continue to give their best to create value for shareholders.

    Shareholders approved the distribution of total dividend of N75 million, representing a dividend per share of 5.0 kobo for the year ended December 31, 2015. Fidson Healthcare recorded a turnover of N8.21 billion and profit after tax of N744.38 million in 2015 as N9.72 billion and N631.8 million respectively in 2014.

    Fidson’s growth strategies are premised on the recent move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where  local production recently commenced. The newly completed state-of-the-art facility will provide several benefits including increased profitability, increased efficiency from economies of scale, increased product offerings as well as job creation with an additional 300 jobs expected to be created.

    Fidson Healthcare recently submitted a regulatory filing at the Nigerian Stock Exchange (NSE) confirming the completion of the new factory.

    According to the regulatory filing, the new factory, which is arguably the largest pharmaceutical manufacturing facility in Africa, is equipped to produce six distinct product lines-intravenous infusions (IV) and other sterile preparations, tablets, capsules, oral liquids, creams and ointments and dry powder.

    The company said the new factory was part of the strategic expansion and diversification programme started, following the successful private placement in 2008. It noted that the supply gap existing in the infusion products’ sub-market persisted as demand kept growing linearly with population, which informed Fidson’s foray into the IV fluids market.

    It is estimated that two per cent of the population, estimated at 170 million, get admitted to hospitals in Nigeria monthly. About 70 per cent of medical patients get infusions at an average rate of four bottles per admission. For surgical patients, over 90 per cent of them will be given infusions. These translate to 3.2 million admission cases monthly, 10.2 million bottles per month and 123 million bottles per year. This is expected to increase with Nigeria’s growing population which is currently put at 2.8 per cent per annum. Market size in revenue terms was conservatively put at N25 billion in 2013, according to the Pharmaceutical Manufacturing Group (PMAG) of the Manufacturing Association of Nigeria (MAN).

    Fidson noted that there was an unmet gap of 2.36 million bottles per month which its new facility is positioned to bridge while growing volumes in the existing production lines.

    “With this new facility, we aim to significantly meet orders of the major consumers – the teaching and general hospitals, federal medical centres, big private hospitals and corporate clinics among others as far as infusion products are concerned using the existing marketing and distribution platforms.

    “The expected financial contribution from this project is such that shall grow the company’s turnover by additional N1.9 billion at 75 per cent activity level by the third year of production, N2.9 billion at 90 per cent  activity level by sixth year and N3.6 billion by the 10th year at same 90 per cent activity level. Overall, this project shall contribute handsomely to the overhead recovery of the company thereby growing shareholder value significantly. This company, aside from increasing its production capacity, the new factory would enhance business prospects in three major ways including ability to tender for WHO-sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders; opportunity to export some of its products to other countries in Africa and beyond and grow foreign exchange income and the overarching benefit in job creation as additional 300 jobs are being created.

  • New core investor launches takeover bid for additional stake in Unity Kapital Assurance

    Beritas Capital Limited, the new majority investor in Unity Kapital Assurance Plc, has launched a takeover bid to buy additional equity shares from the minority shareholders of the insurance firm.

    A filing on the takeover bid obtained at the weekend indicated that Veritas Capital plans to acquire up to 693.33 million ordinary shares of 50 kobo each of UnityKapital from existing minority shareholders at a premium price of 77 kobo.

    The plan is to acquire 5.0 per cent additional equity stake of UnityKapital, to bring the total majority equity stake of Veritas Capital to 55.3 per cent upon consummation of the acquisition process. The takeover’s price of 77 kobo represents a premium of 54 per cent on the current market value of UnityKapital Assurance, which like most insurance companies at the stock market, is currently trading at nominal value of 50 kobo per share.

    Veritas Capital had won the bid to acquire the 50.3 per cent majority equity stake of Unity Bank Plc in UnityKapital Assurance. Following Central Bank of Nigeria (CBN)’s regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Unity Bank opted to divest from its non-core banking businesses, including UnityKapital Assurance.

    Veritas Capital and Unity Bank had earlier this year executed a Share Sale and Purchase Agreement (SSPA), detailing the terms and conditions of the acquisition of 50.3 per cent equity stake in UnityKapital Assurance. However, Securities & Exchange Commission (SEC) directed that a 30 per cent acquisition be done immediately while the balance of 20.3 per cent should be acquired simultaneously with a takeover bid to the other shareholders of UnityKapital Assurance.

    In March 2016, a total of 4.16 billion shares of Unity Kapital Assurance were swapped in a cross deal at 77 kobo per share at the Nigerian Stock Exchange (NSE) to Veritas Capital. This represented 30 per cent equity stake in Unity Kapital Assurance.

    The bid will run concurrently with the consummation of the transfer of the balance of 20.3 per cent equity stake to Veritas Capital, in line with the directive of SEC on the transaction. Capital Assets Limited, a leading capital market operator, is acting as the agent for the transaction.

    Key extracts of the interim nine-month-report of UnityKapital Assurance for the period ended September 30, 2016 showed that turnover dropped from N2.29 billion in 2015 to N1.76 billion in 2016. Profit after tax also declined from N266 million to N171.7 million.

    UnityKapital Assurance emerged in 2007 following the merger of three insurance companies with similar values. The merger followed the requirements of Insurance Regulation of September 2005 which required insurance companies to recapitalise to the level of N3 billion for non-life companies and N2 billion for life companies.

  • GTB rallies equities on strong Q3 results

    GTB rallies equities on strong Q3 results

    Guaranty Trust Bank (GTB) Plc led Nigerian equities to break their three-day consecutive negative trading sessions yesterday as investors responded excitedly to the third quarter results of the most capitalised bank in Nigeria.

    GTB’s share price recorded the highest percentage gain of 5.11 per cent to close at N24.49 per share at the Nigerian Stock Exchange (NSE), leading a rally that saw the market recovering from the depreciation that started on Monday. Benchmark indices at the NSE indicated average day-on-day gain of 0.44 per cent, equivalent to net capital gain of N41 billion.

    Aggregate market value of all quoted equities rose from its opening value of N9.438 trillion to close at N9.479 trillion. The All Share Index (ASI), the main value-based index that tracks prices at the stock market, also rose from 27,478.04 points to close at 27,598.34 points. Average year-to-date return meanwhile remained negative, though slightly better, at -3.64 per cent.

    Key extracts of the interim report and accounts of GTB for the nine-month period, which ended September 30, 2016, showed that gross earnings rose by 43.6 per cent to N329.28 billion by September 2016 as against N229.37 billion in comparable period of 2015. Operating income rose by 59.3 per cent from N174.42 billion to N277.85 billion. Profit before tax grew by 53 per cent to N140.84 billion as against N92.06 billion, while profit after rose by 59.6 per cent from N75.16 billion in September 2015 to N119.93 billion in September 2016. Earnings per share closed September 2016 at N4.24 as against N2.65 in September 2015.

    GTB was the most active stock with a turnover of 17.07 million shares valued at N426.53 million. Total turnover stood at 111.89 million shares valued at N4.01 billion in 2,699 deals.

    Other top gainers yesterday included Seplat Petroleum Development Company, which rose by N7 to close at N368; Guinness Nigeria, which added N1.09 to close at N80; Mobil Oil Nigeria, which gathered N1 to close at N187 and International Breweries, which rose by 95 kobo to close at N19.95.

    There were 16 gainers against 14 losers. Ecobank Transnational Incorporated declined by 40 kobo to close at N10.13. Dangote Sugar Refinery dropped by 14 kobo to close at N6.26. African Prudential Registrars and Nigerian Aviation Handling Company lost 13 kobo each to close at N2.56 and N2.92 while Custodian and Allied Insurance slipped by 9.0 kobo to close at N3.71 per share.

  • Data intelligence will enhance investment returns, says NSE

    Deep understanding and analysis of market data at the Nigerian Stock Exchange (NSE) would enhance investment decisions and returns to savvy investors.

    This was the thematic conclusion yesterday at the inaugural market data workshop organised by the NSE in collaboration with Bloomberg and other information and communication technology firms.

    Chief executive officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said market data provides cushion to investors against market shocks and enable them to invest profitably irrespective of the market cycles.

    According to him, domestic and foreign investors require an elevated level of insight in order to discern between great investments and lame investments, especially during a challenging down cycle.

    He noted that the market data workshop was designed specifically to provide capital market participants with sufficient knowledge about exploiting NSE market data for smart investment decisions.

    He outlined that pre and post trade-related data for the financial instruments traded on the NSE informs traders, investors, media and others in the market on the quotations, latest price, and historical trends for the equities, fixed-income, and Exchange Traded Fund (ETF) products that are traded on the NSE.

    “This information is not only used in real time to make instantaneous buy and sell decisions, but the historical market data is used to make price projections, as well as calculate market risk on investment portfolios,” Onyema said.

    He pointed out that the capital market remains the marketplace for competitive returns in spite of the tough macroeconomic conditions.

    “In spite of the challenging economic conditions we are experiencing in Nigeria, the capital market still remains one of the main vehicles for economic development and wealth creation. The NSE Premium Board has returned 11.3 per cent year-to-date as at 17th October 2016.  The level of private sector time deposits has declined by 14.4 per cent to N3.8 trillion over the last one year (Sep ’15 to Aug ’16), while private sector savings deposits have increased by 19.0 per cent to N3.5 trillion. The average interest rate on these savings and time deposits are 3.6 per cent and 5.9 per cent respectively,” Onyema said.

  • Equities lose N78b as holders offload stocks

    Quoted companies on the Nigerian Stock Exchange (NSE) reopened yesterday to disproportionately high sell orders, which unsettled the pricing trend and shaved off N78 billion from the market values of quoted companies.

    With more than three losers for every gainer, all key indices at the stock market showed a down market as investors sought to rebalance their portfolios. Trading pattern showed a shift towards low-priced penny stocks.

    Aggregate market value of all quoted equities on the NSE closed the first trading session of the week at N9.492 trillion, down by N78 billion from its opening value of N9.570 trillion. The benchmark index at the NSE, the All Share Index (ASI), declined by 0.81 per cent to close at 27,634.99 points as against its opening index of 27,861.03 points. The large decline yesterday pushed the negative average year-to-date return to -3.52 per cent.

    Most sectoral indices showed widespread sell-off across the sectors. The NSE Oil & Gas index declined by 2.08 per cent. The NSE Consumer Goods Index dropped by 1.6 per cent. The NSE Banking Index depreciated by 0.9 per cent while the NSE Industrial Goods Index slipped by 0.1 per cent. However, the NSE Insurance Index inched up by 0.1 per cent.

    Forte Oil led the 24-stock losers’ list with a loss of N7.25 to close at N137.87. Seplat Petroleum Development Company followed with a loss of N5.88 to close at N380. Nigerian Breweries dropped by N4.65 to close at N144.05. GlaxoSmithKline Consumer Nigeria lost 91 kobo to close at N17.48 while Cadbury Nigeria dropped by 78 kobo to close at N14.89 per share.

    On the other hand, there were only seven gainers. Africa Prudential Registrars and Wema Bank led with a marginal gain of 4.0 kobo each to close at N2.72 and 66 kobo respectively. FCMB Group followed with a gain of 3.0 kobo to close at N1.14. Wapic Insurance added 2.0 kobo to close at 52 kobo while Fidson Healthcare, Skye Bank and Nascon Allied Industries inched up by 1.0 kobo each to close at N1.59, 63 kobo and N8.01 respectively.

    Total turnover stood at 255.80 million shares valued at N778.44 million in 2,588 deals. Penny stocks dominated the top activities chart. The three most active stocks were Law Union and Rock, with 100 million shares; Transnational Corporation of Nigeria, 49.56 million shares and Costain, with 32.06 million shares.

    “We believe performance will be influenced this week by investors’ anticipation of more third quarter 2016 earnings yet to be submitted. With the tepid level of activity amidst weaker sentiment, we expect investors’ interest in equities to remain lacklustre in subsequent sessions,” analysts at Afrinvest Securities stated.

     

  • Kenya overturns Nigeria’s 25 years lead in stock trading

    Kenya overturns Nigeria’s 25 years lead in stock trading

    The value of shares traded on the Kenyan stock exchange surpassed Nigeria’s for the first time on record in September. The value of shares traded on Nigeria’s exchange fell to $139 million, near the lowest since Bloomberg began compiling such data in 2009. In Kenya, which has an economy an eighth the size of Nigeria’s, but which is set to grow by almost six per cent this year, the value rose 4.2 per cent from August to $152 million, according to Bloomberg.

    Nigeria is caught between the highest inflation rate in more than a decade and an economy set to contract for the first time since 1991. The naira was allowed to float from June 20, losing more than a third of its value against the dollar since and weakening beyond 300 per greenback for the first time on July 22. The float is anything but free, with Aberdeen Asset Management and Duet Asset Management among investors saying the central bank is holding the naira in a tight range.

    “Nigeria’s in a recession and it’s got issues around foreign-exchange liquidity,” Yvonne Mhango, a sub-Saharan Africa economist at Renaissance Capital, said by phone. “If you compare that to Kenya, an economy that’s growing at 5 or 6 percent, a currency that’s stable, basically you’re seeing a reflection of greater interest in Kenya simply because there is growth”.

    “Over and above that, in the case of Kenya, if they want to repatriate their money tomorrow, the foreign-exchange liquidity is available, whereas in Nigeria it’s more of an issue: you have to wait a longer time to get your dollars out of the country,” Mhango said.

    The lack of foreign-exchange liquidity looms as a greater obstacle to foreign investment in Nigerian than the moribund economy, according to Mhango. “As that clears, you’ll see improved interest, even before the economy starts showing positive growth — as long as the liquidity issue is addressed, you’ll see a pickup in activity.”

     

  • Free float: Chellarams’ core investors refuse shareholding dilution

    •Opt for stock downgrade

    Majority of core investors in Chellarams Plc have decided not to dilute the existing concentrated shareholding of the company. This is a major decision that will see the downgrading of one of Nigeria’s oldest companies from the main board of the stock market to the lowly third-tier board.

    The directors and core investors in Chellarams had been required to restructure the company’s issued share capital in a way to dilute the existing concentrated shareholdings of the core investors and allow more investments from the general investing public.

    Companies listed on the Nigerian Stock Exchange (NSE) are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. The free float requirement for companies on the premium and main boards is 20 per cent while companies on the third tier board, otherwise known as Alternative Securities Market (ASeM), are required to have 15 per cent free float.

    Chellarams, established in Nigeria in 1923 and quoted on the Exchange since 1977, has been on the main board of the Exchange for nearly four decades. But its minimum free float recently fell below the 20 per cent benchmark to 14.87 per cent. Authorities at the NSE had given the company extended timeline to restructure its share capital to comply with the minimum free float. The deadline expired on July 08, 2016.

    The Nation’s check at the weekend indicated that the board of Chellarams has applied to the Exchange to downgrade the company from the main board to the ASeM. At 14.87 per cent of total issued share capital, the minimum number of shares of Chellarams in the hands of the general investing public is within the 15 per cent required for ASeM.

    Ten other companies are in violation of the 20 per cent minimum float and have also been mandated by the NSE to restructure their share capital. These included Union Bank of Nigeria, which has a free float of 14.94 per cent; Capital Hotel, 2.23 per cent;  Great Nigerian Insurance, 16.0 per cent; Nigerian Ropes, 13.96 per cent; AG Leventis, 11.64 per cent; Interlinked Technology, 14.26 per cent; Infinity Trust Mortgage, 1.13 per cent; Transcorp Hotels, 10.80 per cent; Caverton Offshore Support Group, 17.40 per cent and African Paints, which currently has a free float of 9.82 per cent.

    The NSE has issued various deadlines to the defaulting companies including Union Bank of Nigeria, directed to ensure compliance by June 30, 2017; Capital Hotel, January 341, 2017; Great Nigerian Insurance, July 08, 2016; AG Leventis, March 31, 2017; Interlinked Technology, October 14, 2017; Infinity Trust Mortgage, October 31, 2016; Transcorp Hotels, December  12, 2017; Caverton Offshore Support Group, December 12,  2017 while African Paints has up till December 31, 2017 to restructure its share capital.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors, who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, free float shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    Free float deadline is usually in deference to application by the management of a company for some period to comply with the free float. However, the company is required to provide quarterly disclosure report to the NSE on the efforts being made to fully comply by the deadline.

    By the expiration of the deadline, a company is mandatorily required to have completed partial divestments or dilution of the ‘non-public’ shareholdings to free 20 per cent equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the companies. In the extreme instance, a company with deficient public float may opt to delist its shares.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

     

     

  • Standard Alliance Insurance offers 16% equity stake to strategic investor

    Standard Alliance Insurance offers 16% equity stake to strategic investor

    Standard Alliance Insurance Plc will be offering about 16 per cent equity stake to a strategic investor to raise about N553 million, as insurance companies struggle to raise funds from special sources.

    A regulatory document obtained at the weekend by The Nation indicated that Standard Alliance Insurance will be offering 2.21 billion ordinary shares of 50 kobo each through special placement to a strategic investor. The insurance company will however be offering the special placement at 25 kobo, a 50 per cent discount to its nominal and current value at the Nigerian Stock Exchange (NSE).

    The special placement represents 18.4 per cent of the current total issued shares, but the placement will imply 15.5 per cent equity stake after the listing of the new shares. Standard Alliance Insurance currently has total issued shares of 11.993 billion ordinary shares of 50 kobo each.

    The 50 per cent cut in the market value of the company underlines the intense pressure on insurance companies, most of which are struggling to recapitalise in the face of the lingering apathy in the primary issue segment of the Nigerian capital market.

    Standard Alliance Insurance’s bid came on the heels of similar fund raising by Staco Insurance Plc. Staco successfully raised N1.6 billion new equity funds from its special placement. Staco had floated a special placement of 4.0 billion ordinary shares of 50 kobo each at the nominal value of 50 kobo with a view to raising N2 billion new equity funds. Against the dormancy at the primary market, the insurance company recorded 80 per cent subscription rate as it was only able to sell a total of 3.2 billion ordinary shares of 50 kobo each at 50 kobo per share.

    Most insurance stocks are still at their lowest prices. More than 53 per cent of insurance stocks are trading at nominal value of 50 kobo, 20 per cent are hovering around nominal value and only about 17 per cent are trading above 100 kobo mark. The seeming widespread downtrend in the sector is the hangover of the previous negative perception of the sector.

    The losses and depressed balance sheets in the insurance sector were largely tied to the recession at the capital market. With huge funds raised during the capital market boom, and following the trails of squandering banks, insurance companies had turned mainly to the capital market to invest their bubble-induced assets. Small and medium insurance companies, which had metamorphosed into big companies with outstanding shares and equity funds larger than size of business, left the conservative nature of risk assessment and provision-the core expertise of insurers, and turned into speculators. Unmindful of the unscrupulous linkage between banks’ deposits and the bubble share prices in the market, insurance companies were caught napping when the financial services regulators pulled the plugs.

    Heavily exposed to the equities market, unyielding depression in shares prices had directly built up losses and provisions in the profit and loss accounts and balance sheets of insurance companies. On the other end, share prices of insurance companies have generally been the worst hit by the recession as a hangover of negative industry perception, streak of impaired portfolio-induced losses and reticent management combined to single out insurance sector as the highpoint of the bear market.

    Standard Alliance Insurance was incorporated in July 1981 as a private limited liability company and commenced full operations in 1982 under the name Jubilee Insurance Company Limited. The name was changed to Standard Alliance Insurance Company Limited in August 1996. Standard Alliance became a public liability company (Plc) on 30th May, 2002 and was quoted on the Nigerian Stock Exchange in December 2003.

     

  • Equities in marginal loss as profit-taking resurfaces

    Equities in marginal loss as profit-taking resurfaces

    Nigerian equities snapped a two-day rally yesterday as investors turned round to take profits on stocks that had led the recent rally. Underlying market sentiments remained largely negative at the Nigerian Stock Exchange (NSE) with nearly two losers for every gainer.

    Aggregate market value of all quoted equities on the NSE dropped marginally from its opening value of N9.629 trillion to close at N9.627 trillion, representing net capital loss of N2 billion. The All Share Index (ASI), the value-based benchmark index for the stock market, also declined marginally by 0.03 per cent to close at 28,027.23 points as against its opening index of 28,034.32 points.

    Group and sectoral indices showed mixed performance across the sectors. The NSE Industrial Goods Index declined by 0.9 per cent. The NSE Consumer Goods Index lost 0.6 per cent. However, the NSE Oil & Gas Index rose by 1.5 per cent. The NSE Banking Index appreciated by 0.7 per cent while the NSE Insurance Index inched up by 0.2 per cent.

    With 20 losers to 13 gainers, the market performance was driven by the preponderance of losers to gainers as well as losses suffered by highly capitalised stocks, especially in the industrial goods and fast moving consumer goods sectors.

    Nestle Nigeria, the highest-priced stock at the stock market, led the losers with a loss of N19.43 to close at N805.57. Lafarge Africa followed with a loss of N1.28 to close at N46.81. Presco dropped by N1.25 to close at N40.25. Flour Mills of Nigeria declined by 65 kobo to close at N20.05. UACN Property Development Company lost 37 kobo to close at N3.58. E-Tranzact dipped by 28 kobo to N5.41 while Dangote Sugar Refinery lost 18 kobo to close at N6.32 per share.

    The market also showed a slowdown in the momentum of activities. Turnover fell below average with the exchange of 155.58 million shares valued at N1.43 billion in 3,277 deals. Guaranty Trust Bank was the most active stock with a turnover of 28.09 million shares valued at N672.8 million. United Bank for Africa followed with a turnover of 28.04 million shares valued at N119.8 million while Transnational Corporation of Nigeria (Transcorp) placed third with a turnover of 14.75 million shares worth N14.98 million.

    On the positive side, Seplat Petroleum Development Company led the gainers with a gain of N18.37 to close at N385.88. Guinness Nigeria followed with a gain of N3.74 to close at N79.74. Total Nigeria rose by N2.50 to close at N289.50. Guaranty Trust Bank added 15 kobo to close at N24 while United Bank for Africa chalked up 13 kobo to close at N4.31 per share.

    “We expect the market to remain soft, as shown by persistent weak breadth and trading volumes, for the remainder of the week in the absence of more earnings releases,” analysts at Afrinvest Securities stated in post-trading review.

  • PZ Cussons hopes for better performance with innovations

    Amidst current challenges in sales and profitability, PZ Cussons (Nigeria) Plc has assured shareholders of improved performance in the years ahead as the conglomerate continued to implement major changes to enhance business processes and route to the market.

    In a review of the future outlook of the company, chairman, PZ Cussons (Nigeria) Plc, Chief Kolawole Jamodu, described the future of the company as exciting, noting that the company’s confidence rests on its strong and popular brands, improved processes and systems, superior route to market and innovative products that address consumer needs.

    He said the current economic challenges that impacted on corporate performance were transitory and the company remained confident of the future of its business in Nigeria.

    In the future outlook presented to shareholders, Jamodu said the company’s confidence has been emboldened by positive policy changes being adopted by the government.

    “Our brands remain strong and popular with consumers, which leaves us well placed to hold our market position and exploit any emerging opportunities. The streamlined product portfolio will give us the required focus and agility in the market place. We will continue to invest in our supply chain processes to optimise operational efficiencies,” Jamodu said.

    He added that the company has started adapting its management to reflect a truly consumer-led organisation with the focus of the sales organisation now to deliver execution that grows the brands and delivers efficiencies to the business.

    According to him, the changes will integrate global and local perspectives which will have significant bearing on new product developments to ensure that consumer needs in the local market are the driving force of the company’s investments.

    “All of these innovations and improvements put our company in a strong position for the future,” Jamodu assured.

    He reiterated that the company would continue with its strategic initiatives aimed at increasing shareholder value and sustaining long-term value.