The Nation Newspaper

Category: Equities

  • GTB declares N8.83b interim dividend on H1 results

     

    GUARANTY Trust Bank (GTB) Plc will be distributing N8.83 billion as interim cash dividends to shareholders after pre-tax profit rose to N115.79 billion in the first half of this year.

    Shareholders will receive interim dividend per share of 30 kobo, continuing the bank’s tradition of twice annual dividend payment. The interim dividend will be paid on September 11, 2019 to all shareholders on the register of the bank as at the close of business on September 03, 2019.

    Key extracts of the audited report and accounts for the six-month period ended June 30, 2019 released at the Nigerian Stock Exchange (NSE) at the weekend indicated profit before tax rose by 5.6 per cent to N115.8 billion in first half 2019 as against N109.6 billion recorded in the corresponding period of 2018. Profit after tax also improved from N95.58 billion to N99.13 billion. Gross earnings however declined from N226.63 billion to N221.87 billion. Earnings per share improved from N3.38 to N3.50.

    The bank’s balance sheet also emerged stronger during the period. Loan book grew from N1.26 trillion recorded as at December 31, 2018 to N1.27 trillion by June 30, 2019. Customer’s deposits also increased by 6.3 per cent to N2.42 trillion in June 2019 as against N2.27 trillion in December 2018. The bank closed the half year with total assets of N3.6 trillion and shareholders’ funds of N603.0 billion.

    In terms of asset quality, non-performing loan (NPL) ratio and cost of risk improved to 6.8 per cent and 0.2 per cent in June 2019 from 7.3 per cent and 0.3 per cent in December 2018 respectively. Overall, asset quality remains stable with adequate coverage of 84.7 per cent, while capital adequacy ratio remains strong at 23.5 per cent. Return on Equity (ROAE) and Return on Assets (ROA) stood at 33.7 per cent and 5.8 per cent respectively.

    Chief Executive Officer, Guaranty Trust Bank (GTB) Plc, Segun Agbaje, described the results as good results in view of the challenges in the operating environment, characterised by varying degrees of uncertainty and a rapidly changing competitive landscape.

     

     

     

     

  • FMDQ Exchange takes off with trading in all securities – signals paradigm shiftBy

    FMDQ Securities Exchange Plc on Monday formally launched its new status and corporate identity as a full fledge securities exchange with registration to trade in all securities including fixed income, equities, derivatives, commodities and foreign exchange.

    Formerly known as FMDQ OTC Securities Exchange, the transition of FMDQ from an over-the-counter (OTC) platform to a full-blown securities exchange represents a paradigm shift in the Nigerian capital market. It ends the unwritten mono-stock exchange policy and opens up the capital market to intense competition.

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC)  approved the amendment of the registration of FMDQ OTC Plc from ‘an OTC Market’ to a fullfledged ‘securities exchange’ in March 2019.

    FMDQ then secured necessary approvals for a name change to ‘FMDQ Securities Exchange Plc (FMDQ Exchange) with immediate effect, thereby aligning its name to its upgraded status in the capital market. Furthermore, in June 2019, the Exchange received SEC’s registration of its wholly owned central securities depository subsidiary – FMDQ Depository Limited, which is positioned to provide collateral caching, custodian and settlement services with excellent operational capabilities tailored to provide value to its stakeholders.

    FMDQ Depository Limited completes the value chain of pertinent market infrastructure in the Nigerian financial markets, particularly the posttrade spectrum, following the operationalisation of FMDQ Clear Limited.

    FMDQ noted Monday that the implications of its new status are far-reaching as the careful implementation of the FMDQ Entities – FMDQ Exchange, FMDQ Clear and FMDQ Depository – have not only created robust linkages between hitherto fragmented spheres of the markets, but also presented the market with an efficient, innovative and integrated financial market infrastructure (FMI) group for the seamless execution, clearing and settlement of financial markets transactions.

    Having set the pace in the fixed income, currency and derivatives markets, FMDQ Exchange, as a full-fledged securities exchange, will position itself to cover new markets equities and commodities – in the near- to mid-term.

    Managing Director, FMDQ Securities Exchange Plc (FMDQ Exchange), Mr. Bola Onadele. Koko said the development of the Exchange over the last five years was reflective of the progressive and dedicated strategic leadership provided by its board of directors, as well as the company’s ever-intensifying commitment to proactively deliver value to its stakeholders.

    According to him, having successfully consolidated past gains and taken on new frontiers through the operationalisation of a budding integrated FMI Group across the full value chain of the securities market – execute, clear and settle – the Group is poised to enhance efficiencies in FMDQ’s markets to the benefit of market participants.

    He noted that it was in view of the resolute affirmation of the FMDQ entities to influence and promote sustainable development in the Nigerian financial market, one which is in alignment with global standards, that a new identity was unveiled on Monday.

    “As it commences its second lustrum, FMDQ as a one-stop FMI Group with a platform to execute, clear and settle transactions in the Nigerian financial markets, remains committed to collaboratively deliver innovative and forwardthinking solutions to the market,” Onadele.Koko said.

    The erstwhile OTC Exchange commenced operations in November 2013, following its launch as an OTC market, primarily to organise the interbank market with focus on the fixed income, currency and derivative markets, and as a self-regulatory organisation, providing a world-class governance structure for the markets within its purview.

    In view of this, FMDQ Exchange set out to transform the markets, in line with its audacious agenda to make the markets globally competitive, operationally excellent, liquid and diverse; commonly known by market participants as FMDQ’s GOLD Agenda.

  • Olam stakes N120b final offer for takeover of Dangote Flour Mill

    OLAM International Limited has made a final of fer of N120 billion for the acquisition of 99.9 per cent equity stake in Dangote Flour Mills (DFM) Plc, which will make the flour-milling company a wholly-owned subsidiary of Olam International.

    Olam has a subsisting 0.10 per cent equity stake in DFM.

    The board of directors of DFM on Monday confirmed that Olam, through its subsidiary Crown Flour Mills Ltd, has submitted the revised offer with final consideration of N120 billion, implying offer per share of N24. DFM’s share price rose by the maximum daily allowable price change of 10 per cent to close at N20.35 at the Nigerian Stock Exchange (NSE). Olam plans to delist DFM from the NSE after the conclusion of the transaction.

    In a regulatory filing at the NSE, DFM stated that Olam has indicated that it would be undertaken the acquisition through its Ibadan-based subsidiary, Crown Flour Mills Limited. Olam has however confirmed its financial support to Crown Flour to meet the N120 billion transaction.

    The revised and final offer of N120 billion was arrived at after the adjustment of N130 billion valuation for the takeover earlier in April 2019. The parties had agreed that the initial total consideration of N130 billion should be adjusted for net working capital and net debt as at March 31, 2019 or any other later date that may be agreed by Olam and the board of DFM and to also exclude

    Olam’s shareholding in DFM. Shareholders will be paid the final consideration of N24 per share in accordance with the terms of the scheme document, which will be presented for shareholders’ approval at a court-ordered meeting to be convened for that purpose.

    “The board has carefully considered the addendum and the initial offer and will, subject to obtaining regulatory approvals, recommend the revised offer to the shareholders of the company at the court-ordered meeting, for their consideration and approval,” DFM stated.

    The board of directors of DFM had in April accepted the full takeover of the flourmilling company. The acceptance of the acquisition offer is a major step and signals the possible success of the acquisition.

    It implies that the majority core investor in DFM, Alhaji Aliko Dangote, has consented to the deal. With the acceptance, a scheme for the transaction will be prepared for consideration by shareholders at a meeting to be ordered by a Federal High Court.

    Read Also: Olam okays N130 billion for Dangote Flour

    A formal application will also be made to capital market regulators-Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for the approval of the acquisition. If shareholders approve the resolutions on the acquisition at the court-ordered meeting, the resolutions will be presented for a final endorsement of the Federal High Court.

    The directors will thereafter implement the provisions of the resolutions in line with the mandate at the court-ordered meeting.

    This is the second time Dangote will be selling DFM. Dangote, in 2012, sold its majority equity stake to Tiger Brands Limited, South Africa’s largest food company. Dangote Group’s DIL in 2012 sold 63.35 of its equity stake in DFM to Tiger Brands in a $181.9 million deal.

    The deal saw transfer of 3.17 billion ordinary shares out of Dangote Group’s 3.67 billion ordinary shares of 50 kobo each in DFM to the Tigers Brand.

    The deal then was approximately valued at more than N28 billion, according to prevailing exchange rate.

    Barely two years after the acquisition, Tiger Brands had in 2014 written off about half of its investment in the former DFM. Tiger Brands impaired DFM’s value by 849 million rand, about $82  million, because of what it described as “underper formance” and “excess milling capacity that continues to increase in the Nigerian flour market

  • MTN Nigeria invests N2tr as market value closes at N2.6tr

    MTN Nigeria Communications Plc has invested more than N2 trillion in its business operations over the past 18 years. The market value of MTN Nigeria closed at the weekend at N2.585 trillion.

    MTN Nigeria, in a regulatory filing at the Nigerian Stock Exchange (NSE) at the weekend, indicated that it has invested more than N2 trillion since incorporation in 2001.

    MTN Nigeria reiterated its commitments to the Nigerian economy, noting that it had paid more than N1.7 trillion in taxes, levies and other regulatory fees in its nearly two decades of existence.

    The market value of MTN Nigeria dropped by 1.59 per cent to close weekend at N2.585 trillion. The share price decline came on the heels of what the telecommunications company described as “technical disagreement” with the Federal Inland Revenue Service (FIRS) over the tax treatment of the N330 billion fine imposed on the company for failing to deactivate more than five million unregistered SIM cards. MTN Nigeria had completed the payment of the N330 billion fine in May 2019 but the tax treatment remains a subject of judicial review at the Tax Tribunal. MTN Nigeria believes the N330b fine should be treated as part of operating cost and not subjected to any other tax but FIRS holds that the fine should be subjected to tax.

    MTN Nigeria has remained Nigeria’s second largest quoted company since listing on the NSE in May 2019. MTN Nigeria last month earmarked N60 billion as interim cash dividend to shareholders as it released its first earnings report as a quoted company.

    The board of the telco indicated shareholders will receive a dividend per share of N2.95 for the first half ended June 30, 2019. This however represented a drop of 17.83 per cent from N3.59 per share paid for the first half of 2018.

    Key extracts of the six-month report for the period ended June 30, 2019 showed that MTN Nigeria’s profit before tax rose by 30.9 per cent to N141.8 billion in first half 2019 as against N108.35 billion recorded in comparable period of 2018. Profit after tax grew by 34.8 per cent from N73.4 billion to N98.93 billion. Total turnover grew by 12.12 per cent to N566.95 billion as against N505.67 billion. Operating profit had risen by 39.49 per cent from N136.50 billion to N190.4 billion. Earnings per share rose by 34.8 per cent to N4.86 compared with N3.61.

    The report showed that the telco’s mobile subscribers increased by 3.3 million within the first six months of this year to 61.5 million while service revenue increased by 12.2 per cent. Voice revenue increased by 11.4 per cent, data revenue rose by 31.7 per cent while fintech revenue increased by 21.2 per cent. However, digital revenue dropped by 64.5 per cent. The company’s earnings before interest, tax depreciation and amortization (EBITDA) rose by 40 per cent to N304.9 billion while EBITDA margin improved by 10.7 percentage points to 53.8 per cent.

    Nigeria is MTN’s largest market, accounting for one-third of the South African Group’s business. The telco last week announced that the Central Bank of Nigeria (CBN) has granted its subsidiary, Yello Digital Financial Services Limited (YDFS), full Super Agent Licence. The licence will enable MTN Nigeria to convert its existing airtime agents and recruit other small businesses to distribute financial services.

    The telco stated that the Super Agent Licence will enable it to pursue its fintech strategy, as part of efforts to deepen financial inclusion in Nigeria.

    Chief Executive Officer, MTN Nigeria Communications Plc, Ferdi Moolman described the first half performance as a solid performance as the company continued to invest to improve network quality and expand 4G coverage.

    He noted that recent work on revamping data prices and accelerating 4G network has put the company in a strong competitive position to offer more value to customers and provide new impetus for overall corporate growth.

    He said the listing of the company on the Nigerian Stock Exchange (NSE) in May 2019 demonstrated the company’s commitment to the Nigerian market while providing opportunity to domestic investors to participate in and benefit from the company’s growth.

    “Our overriding priority for the rest of the year is to focus on our BRIGHT strategy to build a sustainable business and create value for customers. We will continue to progress in the second half of the year making improvements to our network experience, subscriber growth and enhance operational efficiency. We expect lower data pricing and our acceleration of the 4G network expansion to bolster the acquisition of customers and data traffic volumes in the second half,” Moolman said.

  • Shareholders approve new capital raising for Ellah Lakes

    Shareholders of Ellah Lakes Plc have approved the increase in authorised share capital of the agricultural company and further authorised the board of the company to raise new capital. The new capital raising will support the diversification of the company’s business.

    At the extraordinary general meeting, shareholders passed a resolution increasing the authorised share capital of the company from N1 billion of 2.0 billion ordinary shares of 50 kobo each to N1.5 billion of 3.0 billion ordinary shares of 50 kobo each through the creation of additional 1.0 billion ordinary shares of 50 kobo each.

    The meeting also approved resolutions authorising the board of the company “to raise additional capital whether by way of debt, equity, or a mixture of both, or via public offering, private placement or right issue in such tranches, series or proportions and such prices or interest rates, within such maturity periods, at such dates and time and on such terms and conditions as may be determined by the directors, subject to the requisite approval of the relevant regulatory authorities”.

    Shareholders also approved appointments of seven non-executive directors including Olumide Akpata, Chijioke Dozie, Hauwa Nuru, Shehu Abubakar, Maxwell Oko, Evans Jakpa and Nnenna Onyewuchi.

    Managing Director, Ellah Lakes Plc, Mr. Chuka Mordi, said the approval of the increase in authorised share capital and new capital raising provides the company with the flexibility to enhance its capital structure as it pursues its aggressive growth plan in the medium term.

    According to him, the company’s ambitious growth plan requires significant capital investments in the medium term.

    He said the approval of new directors would strengthen the company in its quest for growth assuring that the company will deliver value to shareholders.

    Ellah Lakes, one of Nigeria’s foremost agriculture businesses with specialty in fish farming, recently acquired Telluria in order to diversify its product offerings in the agribusiness sector. Ellah Lakes was incorporated on July 2, 1980 and was listed on the NSE on January 14, 1993.

    The company had last month listed 1.88 billion ordinary shares of 50 kobo each issued to shareholders of Telluria Limited as consideration for 100 per cent acquisition of Telluria. The new shares were listed on the NSE, bringing the new shares at par with the old shares of Ellah Lakes. With the listing, the total issued and fully paid up shares of Ellah Lakes increased from 120 million ordinary shares of 50 kobo each to 2.0 billion ordinary shares of 50 kobo each.

    Ellah Lakes had acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

    Ellah Lakes stated that the primary objective of the acquisition was to strengthen its balance sheet, restore customer confidence, provide access to new markets, improve operations and create organisational efficiencies that will drive profitability and increase shareholders’ value.

    According to the company, the board of directors and management consider this business combination to be in its best interest as the transaction will help to revitalise management and create access to diversified expertise and financial strength.

    The company added that the acquisition would also help to improve administrative and operational efficiencies as well as strengthen its market position by increasing access to new products and markets.

  • Unilever Nigeria records N3.5b net profit in H1

    Unilever Nigeria Plc recorded a 37 per cent decline in net profit to N3.5 billion in first half of 2019 as the fast moving consumer goods company struggled with its slow start to the year.

    The six-month report for the period ended June 30, 2019 showed improvements in quarter-on-quarter performance but the half-year performance was considerably below comparable performance in 2018. Total turnover for the first half 2019 stood at N42.6 billion, 11 per cent below N48.1 billion recorded in comparable period of 2018. Profit after tax dropped by 37 per cent from N5.6 billion in first half 2018 to N3.5 billion in first half 2019.

    However, the company recorded a considerable leap in the three-month second quarter to record a 24 per cent increase in its profit after tax at N1.9 billion. Turnover rose by 18 per cent in second quarter to N23.4 billion as against N19.2 billion in first quarter of 2019. During the period, profit after tax rose from N1.5 billion in first quarter 2019 to N1.9 billion in second quarter 2019.

    Cost of sales decreased marginally by 4.5 per cent from N32.8 billion in June 2018 to N31.3 billion in June 2019 in line with the decrease in turnover while cost of sales increased by 3.6 per cent to N15.9 billion in second quarter 2019 from N15.4 billion in first quarter 2019 also in line with the marginal increase in turnover in second quarter.

    In a statement released by the company, Unilever Nigeria assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations engineered to achieve better returns on their investments.

    Managing Director, Unilever Nigeria Plc, Yaw Nsarkoh said although Unilever Nigeria continues to operate in a tough environment, it is now beginning to see momentum behind enhanced costs and operational efficiencies.

    “Unilever Nigeria remains focused on its short-and-   long-term growth ambitions with clear emphasis on cost and operational efficiencies, increasing market share across key categories, reinvesting behind our iconic brands and improved route-to-market,” Nsarkoh said.

    The company noted that its strategic initiatives rest on its global best practices, strong heritage as well as the professionalism of its people.

  • Stock Exchange bans webmails over cyber threat

    Authorities at the Nigerian Stock Exchange (NSE) have banned the use of web-based email accounts as official communication channels by capital market operators as part of measures to mitigate risk of cyber attack.

    In a circular obtained by The Nation at the weekend, the NSE stated that it is taking steps to permanently restrict all web-based emails from its domain. It sets a deadline of September 30, 2019 for all dealing member firms to comply with the requirements of its Minimium Operating Standards (MOS), which prescribes that all dealing member firms should have e-mail accounts registered on private domains.

    The Exchange warned that it would no longer accept communication through webmails beyond the deadline.

    According to the Exchange, cyberattacks and threats have increased in frequency and size in recent times, often leading to data breaches, business disruptions and reputational damage for business organisations.

    The exchange noted that one of the primary channels used by cybercriminals and hackers to infiltrate and compromise the information technology (IT) systems of targeted organisations is electronic messages.  Most cyberattacks involve the use of web based e-mail accounts to send malicious software or viruses, known as phishing, capable of compromising data and infrastructure of organisations with the attendant negative impact on confidentiality, integrity and availability of data.

    The NSE stated that it was concerned that many dealing member firms still use web based e-mail accounts such as Yahoo mail, Gmail and Hotmail among others as their official communication channels contrary to the requirements of the MOS.

    “Considering the threats and risks of cyberattack that can be launched through webmails as highlighted above, it has become imperative to implement preventive measures to mitigate such risks. Consequently, all dealing member firms that currently use webmail for their official communication are hereby required to acquire a private domain and create corporate e-mails within two months from the date of this circular and notify the Exchange accordingly,” NSE stated.

    The Exchange warned that all stockbroking firms must comply with the directive as a mandatory requirement.

    Total transactions at the NSE stood at N1.088 trillion in first half 2019. Domestic investors recoded total turnover of N329.69 billion as against N285.04 billion recorded by institutional investors in first half 2019. Domestic investors led the activities table for the first half of 2019 with 54.16 per cent of total transactions compared with the situation in first half 2018 when foreign investors dominated with 50.07 per cent. Domestic investors accounted for total transactions of N614.73 billion in first half 2019 as against N472.78 billion recorded by foreign investors.

  • Chams reassures as shareholders get N140m dividend

    The board of Chams Plc has reassured shareholders that the information and communications technology (ICT) company has been repositioned to sustain its recovery and deliver continuous returns to shareholders.

    Chams declared its first dividend payment of N140 million after it recovered from its long-running losing streak with a net profit after tax of N385 million. At the annual general meeting in Lagos, shareholders approved the payment of a dividend per share of 3.0 kobo.

    Directors of the company said it would continue to leverage on the restructuring of its balance sheet to expand income stream, boost performance indicators and sustain competitive edge.

    Chairman, Chams Plc, Dr Dere Awosika assured that the company had been well positioned to enhance shareholders’ value with the successful restructuring of its finances, which laid a solid foundation for performance and competitiveness.

    According to her, on the strength of the new outlook, there are more opportunities for effective and efficient implementation of the company’s growth strategy.

    “We plan to consolidate on the progress made in the previous years to deliver a strong and sustainable performance that enhances returns to our shareholders. We are marching forward in the year with confidence and optimism, knowing fully that our businesses have been strategically positioned to take advantage of key opportunities as we stay on course in the execution of our growth strategy,” Awosika said.

    Group Managing Director, Chams Plc, Mr Femi Williams said the improved performance reflected the success of the company’s restructuring programme noting that Chams’ main goal would focus on increase volume of business and significantly improve expense ratio to secure the company’s competitiveness.

    According to him, the company recorded a plausible financial success in 2018, despite the losses made in 2017.

    The audited report and accounts of the company for the year ended December 31, 2018 showed total revenue of N3.01 billion in 2018 compared with N1.95 recorded in 2017, an increase of 54 per cent.

    Gross profit increased by five per cent to N786 million in 2018 as against N743 million in 2017. The bottom-line improved significantly from a loss of N1.2 billion in 2017 to a profit of N380 million in 2018.

    “This advancement in profit and capital is an attestation to the credibility of our commitment and our business model,” Williams said.

    Shareholders commended the board and management of the company on its turnaround urging them to sustain the performance in the years ahead.

    A shareholder, Mr. Michael Cole, said the dividend payment was a good sign of recovery, especially given the background of the company.

    “I am impressed with the performance of the company as shown in the result and I pray God will give the management and board the strength to do more,” Cole said.

    A shareholders’ leader and activist, Mr Gbadebo Olatokunbo also expressed satisfaction with the performance of the company urging it to intensify efforts in its leading role in deploying technology to boost operations.

    “I appreciate the performance of the company despite the tough operating environment. Nigeria today is catching on with the global trend in digitalizing everything. Most businesses require technology to thrive and since we are already well positioned in the company, there is assurance that the company should be able to do more in the next result,” said Olatokunbo.

  • Nestlé Nigeria nets N26b profit in 6 months

    Nestle Nigeria Plc recorded a well-rounded performance in the first half with increased sales and profitability. All key performance indices trended upward during the six-month period, raising the prospects that Nigeria’s highest-priced quoted company may surpass its previous performance.

    Key extracts of the half-year report for the period ended June 30, 2019 showed that sales rose to N141.91 billion in first half 2019 as against N135.3 billion in corresponding first half of 2018. With decline in cost of sales from N79.71 billion to N75.83 billion, gross profit rose from N55.58 billion to N66.08 billion. Operating profit rose from N32.15 billion to N40.43 billion.

    Considerable reduction in finance costs, from N1.12 billion to N888.68 million, boosted the bottom-line with net finance income of N2.42 million in first half 2019 as against deficit of N280.67 million in first half 2018. With these, profit before tax rose from N31.87 billion in first half 2018 to N40.44 billion in first half 2019. After taxes, net profit increased to N26.25 billion in first half 2019 compared with N21.46 billion in comparable period of 2018.

    The company attributed the growth to consistent investment behind its brands, intensified efforts to communicate with consumers and continuous investment in route to market to deliver better value to consumers.

    In a statement signed by Company Secretary, Nestle Nigeria, Bode Ayeku, the board of the company commended its consumers for their trust and continued loyalty as well as the discipline and dedication of its staff for driving sustainable and profitable growth.

    Directors of the company noted that amid a challenging economic context, the company remains confident in its capacity to innovate to keep delighting consumers with nutritionally superior products and foster its people’s ability to win.

    “In turn, these investments will continue to create shared value for our shareholders and for the people of Nigeria. In line with our purpose which is enhancing quality of life and contributing to a healthier future, we will remain focussed on enabling thriving and resilient communities through local sourcing, expanding the commercialisation of our food and beverages to deliver accessible and affordable nutrition to more people and strengthening our value chain to gain further efficiencies,” the board stated.

    Nestle Nigeria distributed N30.52 billion as final dividend for the 2018 business year, bringing total dividend payout for the year to N46.42 billion. The company had in November 2018 paid N15.9 billion as interim dividend.

    Shareholders received a final dividend per share of N38.50 in addition to interim dividend per share of N20, bringing total dividend per share for the year to N58.50.

    With the dividend payout above the N43.01 billion net profit recorded in 2018, the company explained that the total payout of N46.42 billion included net profit for the year and part of the net profit for the 2019 business year.

    According to the company, the final dividend of N38.50 per share comprised of N34.20 from the profit for the 2018 business year and N4.30 from the net profit for the 2019 business year.

    Key extracts of the audited report and accounts of Nestle Nigeria for the year ended December 31, 2018 had shown that the company rode on the back of improved operating efficiency and finance cost management to optimise its bottom-line performance in 2018, growing net profit by 27.5 per cent to N43.01 billion.

    The report showed that turnover rose to N266.27 billion in 2018 as against N244.15 billion in 2017, representing an increase of 9.06 per cent. Cost of sales increased by 6.33 per cent from N143.28 billion in 2017 to N152.35 billion in 2018. Gross profit thus rose faster by 12.94 per cent to N113.92 billion in 2018 compared with N100.87 billion in 2017.

    Marketing and distribution expenses increased to N43.49 billion from N35.16 billion while administrative expenses dropped from N10.02  billion to N9.79 billion.

    Operating profit consequently improved from N55.7 billion in 2017 to N60.64 billion in 2018. Finance costs dropped by 82.75 per cent from N15.109 billion to N2.606 billion. Profit after tax grew by 27.53 per cent from N33.72 billion in 2017 to N43.01 billion in 2018. With these, earnings per share rose by 27.52 per cent to N54.26 in 2018 as against N42.55 in 2017. Total assets increased by 10.58 per cent to N162.34 billion in 2018 as against N146.80 billion in 2017. Shareholders’ equity also improved from N44.88 billion to N50.22 billion.

     

  • Seplat grows profit by 15.6% to N37b in H1

    Seplat Petroleum Development Company Plc sustained its growth trajectory in the first half as pre-tax profit rose by 15 per cent to N37 billion, equivalent to $121 million.

    Key extracts of the interim report and accounts of Seplat for the six-month period ended June 30, 2019 released yesterday at the Nigerian Stock Exchange (NSE) showed that turnover grew by four per cent to N109 billion in 2019 as against N105 billion recorded in comparable period of 2018. Gross profit increased by 19 per cent to N64 billion in 2019 as against N53 billion in 2018. Profit before deferred tax increased by 15.6 per cent from N32 billion to N37 billion.

    In Dollars terms, Seplat, which is also quoted on the London Stock Exchange (LSE), recorded a turnover of $355 million in half year 2019 as against $343 million in corresponding period of 2018. Operating cash flow hit $255 million in half year 2019 as against $245 million in comparable period of 2018. Gross profit rose by 19 per cent to $207 million as against $174 million while profit before deferred tax increased to $121 million in first half 2019 compared with $105 million in first half of 2018.

    Chief Executive Officer, Seplat Petroleum Development Company Plc, Mr. Austin Avuru, said the half-year performance emphasised the strong cash generation potential of the company’s low-cost production base and the good progress it is making at the large-scale Assa North/Ohaji South (ANOH) gas and condensate development project.

    He explained that the first-half work programme was impacted by unforeseen delays from rig contractors as well as the need to undertake higher levels of maintenance and asset integrity work for longer-term benefit of the assets, which affected production during the period.

    He said the company has now secured the necessary rig capacity for the second half to implement the revised work programme which will drive it towards a 2019 exit working interest production rate of 62,000 barrels of oil equivalent per day (boepd) and bring annualised production within the unchanged guidance range of 49,000 to 55,000 boepd.

    est green field gas and condensate developments onshore the Niger Delta to date. Seplat is well positioned to leverage the experience gained at the Oben gas processing hub to incorporate operational and cost efficiencies. The board of Seplat had in March 2019 took the Final Investment Decision (FID) to proceed with the ANOH project where first gas is targeted for first quarter 2021.