The Nation Newspaper

Tag: Profit

  • Afe Babalola to school owners: don’t go into education for profit

    FOUNDER and Chancellor of the Afe Babalola University Ado-Ekiti (ABUAD) Aare Afe Babalola has warned school owners against investing in education to make profit.

    Even if they do make profit, Babalola said it should be invested into making the school even better.

    The renowned lawyer spoke yesterday while addressing school owners at the 12th International Conference of the National Association of Proprietors of Private Schools (NAPPS) hosted by his university.

    Babalola said his experience in running ABUAD had taught him that education was a social service.

    In his speech titled: “Towards an Effective and Efficient Quality and Functional Education in Nigeria in the 21th Century”, Babalola said: “From the beginning, the purpose of education was impartation of knowledge and acquisition of quality education. It was not for profit-making as it is known and practiced in some quarters today.

    “I have said it in many fora that education is an expensive and non-rewarding enterprise designed to develop one’s community and raise future leaders and indeed, a new generation of leaders and leave the society better than we met it. For the sake of emphasis, it is not a profit-making venture. My experience these nine years of running ABUAD permits me the latitude to advise those who think they can make money by running a university to look into some other directions as they are not likely to make money by running a university.

    “In conclusion, ladies and gentlemen, no one should think of breaking even in the first few years after the commencement of an educational institution, but if the standard is high, people will definitely patronise you and perhaps you may make some money, which of course must be ploughed back into the school for better and greater efficiency.”

    Babalola advised the school owners to make the proper investments in transforming their schools into quality learning spaces.

    Giving the attributes of good schools, he said they should possess adequate physical learning areas equipped with well-stocked libraries, laboratories, ICT, and other modern facilities; and staffed by qualified and experienced teachers.

    He advised proprietors to collaborate in owning schools rather than bearing the cost alone.  He also called for government funding of private education through the Public Private Partnership (PPP) model.

    “Your goal should be to establish top-rate primary and secondary schools and not mere local ones. I appeal to the different levels of government to accord due recognition to quality private schools by supporting them financially,” he said.

  • Cadbury Nigeria bounces back to profit

    Cadbury Nigeria Plc appeared to have weathered the storm of its recent losing streak as the company witnessed a turnaround in 2017. Cadbury Nigeria rode on the back of improved sales and reduced sales and administrative expenses to post a pre-tax profit of N350 million in 2017 as against a loss of N562 million in 2016.

    Key extracts of the audited report and accounts of Cadbury Nigeria for the year ended December 31, 2017 released yesterday at the Nigerian Stock Exchange (NSE) showed that sales rose from N29.98 billion in 2016 to N33.08 billion in 2017. Gross profit increased from N6.86 billion to N7.44 billion. Selling and distribution expenses reduced from N5.6 billion in 2016 to N5.23 billion in 2017 while administrative expenses improved considerably from N2.07 billion in 2016 to N1.59 billion in 2017.

    With these, the company posted a positive operating profit of N711.37 million in 2017 compared with operating loss of N732.85 million in 2016. The company however came under finance pressure as interest expense jumped from N17.8 million in 2016 to N545 million in 2017. After taxes, net profit stood at N299 million in 2017 as against net loss after tax of N296 million in 2016.

    The board of directors of the company has recommended distribution of N305 million as cash dividend to shareholders, representing a dividend per share of 16 kobo.

    Director, Corporate and Government Affairs, Cadbury West Africa, Bala Yesufu attributed the turnaround to the studious implementation of the company’s restructuring programme.

    “We have been working assiduously over the years to turnaround our loss situation. We are happy to announce that we finally realized our vision to reposition Cadbury for improved performance, in 2017,” Yesufu said.

    Cordros Capital described the results as “better than expected” noting that Cadbury Nigeria surpassed estimates for the fourth quarter.

    “We believe Cadbury Nigeria’s revenue growth in fourth quarter 2017 was largely volume-driven, as opposed to fourth quarter 2016 which was majorly on prices,” Cordros Capital stated.

    Mondelçz International, a global snacks powerhouse that holds 74.97 per cent equity stake in Cadbury Nigeria had in 2017 drafted its director of the innovation kids wholesome segment of its global biscuits business based in East Hanover, United States of America, Mr. Muhammad Amir Shamsi, to take over the leadership of the Nigerian subsidiary. Shamsi resumed on February 1, 2017.

    Shamsi was mandated to drive critical performance measures that could see Cadbury Nigeria regaining its declining market share. Shamsi, an experienced hand in West Africa, was the group’s marketing director for West Africa between October 2013 and March 2016. He had earlier served as head of new categories and Gum and Candy in West Africa between September 2012 and September 2013. He joined Mondelçz International in June 2009.

  • Total Nigeria retains N5.77b dividend payout despite 46% drop in profit

    Total Nigeria retains N5.77b dividend payout despite 46% drop in profit

    The board of directors of Total Nigeria Plc has recommended payment of final dividend of N4.75 billion to shareholders, bringing the total dividend payout for the 2017 business year to N5.77 billion. The company had also paid N5.77 billion as cash dividend to shareholders in 2016.

    The breakdown of the dividend recommendation indicated that shareholders will receive a final dividend of N14 per share. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed a top-down decline in performance. Turnover dropped marginally from N290.95 billion in 2016 to N288.06 billion in 2017. Profit before tax dropped by 42 per cent from N20.35 billion in 2016 to N11.8 billion in 2017 while profit after tax declined by 46 per cent from N14.8 billion to N8.02 billion. Earnings per share also declined by 46 per cent from N43.58 in 2016 to N23.62 in 2017. However, the company’s shareholders funds improved by 20 per cent from N23.57 billion to N28.23 billion.

    The company blamed the decline on tough operating environment in 2017 citing economic recession and its consequent contraction of the downstream market.

    The company also stated that scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template, foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates impacted negatively on the company’s performance.

    Managing Director, Total Nigeria Plc, Jean-Philippe Torres, said Total Nigeria is committed to ensuring total customer satisfaction by the creation of quality products and services delivered with a strong commitment to safety and respect for the environment.

    According to him, the overall objective of total customer satisfaction drives all the company’s actions and the mutual acknowledgement of them by its partners forms the basis for their business relationships.

    “To sustain this objective and our leadership of the market, our commitment is to build and sustain a work culture firmly rooted in professionalism, respect for employees, internal efficiency and dedicated services,” Jean-Philippe Torres said.

  • Nigerian Breweries pays N33b net profit as dividend

    Nigerian Breweries pays N33b net profit as dividend

    The board of Nigerian Breweries (NB) Plc has recommended distribution of N25 billion as final cash dividend to the shareholders of breweries, raising the total cash dividend for the 2017 business year to N32.9 billion. This represented the entire profit after tax for the year.

    A breakdown of the final dividend recommendation indicated that shareholders will receive a dividend of N3.13 on every share held as at the close of business on March 6, 2018. Shareholders are expected to approve the dividend at the company’s annual general meeting on April 20, 2018 while the dividend will be paid on April 23, 2018.

    Nigerian Breweries had distributed N7.9 billion as interim dividend, representing interim dividend per share of N1. The total dividend per share now stands at N4.13.

    Key extracts of the audited report and accounts of the company for the year ended December 31, 2017 showed that total sales rose by 10 per cent from N313 billion in 2016 to N344 billion. Profit before tax increased from N39.67 billion in 2016 to N46.63 billion in 2017. Profit after tax grew by 16 per cent from N28.4 billion in 2016 to N33 billion. Earnings per share stood at N4.13 in 2017 as against N3.58 in 2016.

    Company Secretary, Nigerian Breweries Plc, Mr. Uaboi Agbebaku, noted that while the foreign exchange situation improved in the course of 2017, double digit inflation continued to impact both businesses and consumers.

    He said the company was able to end the year with improved results through continuous focus and execution of the twin agenda of cost leadership and market leadership supported by innovation.

    He pointed out that while there are some early signs of improvement in the macro-economic condition, this is yet to be reflected in consumer confidence.

    Directors of the company expressed optimism that NB has a clear strategy to deliver good return on investment to shareholders as part of its commitment to winning with Nigeria.

  • Prestige Assurance targets N3.1b profit by 2021

    The management of Prestige Assurance Plc yesterday outlined the growth outlook of the insurance company with a projection that the company will grow its pre-tax profit by more than 251 per cent to N3.08 billion by 2021.

    Presenting the underlying facts about the operations of the company to the investing public yesterday at the Nigerian Stock Exchange (NSE), the management of the company indicated that strategic initiatives being taken by the management would ensure sustained growth over the next five years.

    According to the forecasts, pre-tax profit is expected to rise to N877 million by the end of 2017 and thereafter rise consecutively to N8.08 billion by 2021. Profit after tax is expected to increase to N596 million in 2017 and N2.09 billion in 2021. Earnings per share is projected to increase to 11 kobo by 2017 and 39 kobo by 2021.

    The company plans to grow its top-line continuously over the five year period with gross premium income expected to increase to N3.4 billion in 2017 and subsequently to N9 billion in 2021.

    Chief Financial Officer, Prestige Assurance Plc, Mr. Oluwadare Emmanuel, said the company’s strategic growth plan focused on prompt payment of claims to customers and dividend payment to shareholders.

    According to him, the company has restructured its balance sheet in order to be able to make dividend payments while it has implemented many digital transformation initiatives and robust software to ensure prompt claims payment.

    He added that successful launch of new products such as Prestige Mediclaim Policy, Prestige Salary Protection Shield and Travel Insurance (OMP), expansion of retail market reach by employing marketing associates and opening new branches were aimed at deepening the company’s market penetration and build a solid base for growth.

    Emmanuel said the outlook for the Nigerian insurance industry remains encouraging despite operating challenges.

    According to him, though Nigeria has shown positive signs of development in this industry with gross premium written doubled within 2006 to 2015, there is still room for more growth.

    “The transformation agenda of the present government supported by Central Board of Nigeria and that of NAICOM will definitely promote the sale of insurance policies. With more channels of distribution such bancassurance, web aggregator, digital marketing, micro insurance, mobile phone marketing, agency and one man shop will lead to high penetration of insurance to the grass roots, thereby creating opportunity for the industry to tap into the informal sector in order to increase the number of policyholders across the nation,” Emmanuel said.

    He however noted that there could be another round of recapitalization and consolidation in the industry as many insurance companies will require additional capital to enable them pursue their growth initiatives and to meet up with the impending regulatory risk based supervision and capital assessment.

    He pointed out that while ongoing reforms are geared towards enhancing transparency in the Nigerian insurance industry and improving the general perception and image of the insurance business in Nigeria, the Federal Government should facilitate the ease of doing business by amending the Companies Income Tax Act (CITA) in relation to computation of insurance taxation, easy entry of foreign investment and provision of suitable environment that guarantees Return on Investment (RoI).

    He outlined the challenges being faced by insurance companies to include low penetration, lack of trust, slow implementation and enforcement of compulsory insurances, fake policies in circulation and regulatory reforms.

  • Transcorp grows Q3 profit by 158%

    Transcorp grows Q3 profit by 158%

    Transnational Corporation of Nigeria Plc (Transcorp), an investment conglomerate, has announced financial results for its third quarter ended September 30, 2017. The Group Profit after Tax (PAT) for Q3 2017 improved by 158 per cent Year on Year (YoY) to N8.2billion.

    Its income statement showed revenue of N56.76billion, significant growth from N41.92billion and a 35 per cent growth YoY. Its gross profit improved from N19.84billion in Q3 2016 to N25.62billion (45 per cent YoY) in Q3 2017 along with operating profit of N16.81billion compared to N11,58billion reported Q3 last year.

    Transcorp’s net finance cost for Q3 2017 stood at N7.77billion, down from N24.37billion in Q3 2016 while profit before tax was N9.04billion marking a significant recovery from reported loss of N12.7billion in Q3 2016.

     

     

  • Zenith Bank grows profit by 31% to N153b in Q3

    Zenith Bank grows profit by 31% to N153b in Q3

    Zenith Bank Plc recorded significant growths in the top-line and bottom-line in the third quarter, raising prospects of better returns for the 2017 business year.

    Key extracts of the interim report and accounts of the bank for the nine-month period ended September  30, 2017 showed gross earnings of N531.3 billion, showing a growth of 39.7 per cent above the N380.4 billion posted in the corresponding period of 2016. Net interest income rose marginally by 6.2 per cent from N189.8 billion to N201.5 billion, while non-interest income surged by 123 per cent to N169.5 billion, from N94.7 billion.

    Zenith Bank grew its profit before tax by 30.8 per cent from N116.6 billion to N152.5 billion while profit after tax (PAT) grew faster by 36 per cent to N129.2 billion, compared with N95.4 billion in 2016.

    Also, deposits grew from N2.6 trillion at the end of December 2016 to N3.1 trillion as at September. But loans and advances fell marginally by 2.6 per cent to N2.2 trillion, from N2.4 trillion. Total assets stood at N5.1 trillion, up from N4.6 trillion in December 2016.

    Chairman, Zenith Bank Plc, Mr. Jim Ovia recently assured that the bank would continue to work to improve shareholders’ value in spite of the challenging operating environment.

    He noted that the bank’s performance was due to its ability to fully exploit the available opportunities, pointing out that in line with its commitment to delivering superior returns to shareholders, the bank ensured that a good chunk of the profit would be distributed to the shareholders.

    “As a bank, we are monitoring developments both in the local and global economy and applying pragmatism and dynamism as appropriate. Our strategy and approach to the pursuit of financial inclusion and sustainability gives us a lot of competitive advantage to explore even new frontiers in the market,” Ovia said.

  • NETCO made N5.1b profit in 2015, 2016

    NETCO made N5.1b profit in 2015, 2016

    The National Engineering and Technical Company Limited (NETCO), the engineering arm of the Nigerian National Petroleum Corporation (NNPC), grossed a profit after tax of N5.1 billion for two financial years  – 2015 and 2016.

    The breakdown shows that N1.4 billion was realised in 2015, while N3.7 billion was earned in 2016.

    At the company’s Annual General Meeting (AGM) in Abuja, its Chairman, Board of Directors, Mr. Bello Rabiu, lauded the feat achieved by the firm, despite the harsh economic realities.

    He said the company’s profit was boosted by the resolve of NNPC Group Managing Director Dr. Maikanti Baru, and top management committee (TMC) to transform its Autonomous Business Units (ABUs) to profit centres.

    He noted that with the stride, the company had proved that if given the necessary support by shareholders, it has the potential to make better returns, especially now that the economy has exited recession.

    Rabiu on behalf of the shareholders expressed appreciation to the NNPC boss, the TMC and others for their support and ensuring the required patronage for sustained growth. He also commended NETCO’s management and staff for their continued efforts to sustain shareholders’ confidence and the stakeholders’.

    NETCO’s Managing Director SikyAliyu said the company, in 2015, won four new contracts and executed nine projects, and recorded 374,000 man-hours of work, despite the downward trend in the oil and gas industry.

    The highpoint of the AGM was the presentation of a cheque of N610 million dividends to NNPC’s Group Managing Director for NETCO’s 2015 and 2016 financial years.

    Baru, who congratulated the company for making profit in the face of drop in crude oil prices, added that NNPC  would continue to drive NETCO not only to be an engineering company of choice, but also to become a procurement and construction outfit of repute.

    “It is, indeed, with pleasure that I am receiving this N610 million dividends cheque from NETCO. This is a symbol that we are driving the company in the right direction despite downturn of crude oil prices. We are also driving NETCO to diversify its operation to procurement and construction and it is my hope that the N610 million would soon become $610 million,” Baru said.

    NETCO was established in 1989 to acquire engineering technology through direct involvement in all aspects of engineering in the oil, gas and non-oil sectors of the economy. NETCO is Nigeria’s premier indigenous engineering company with the strategic vision of providing basic and detailed engineering, procurement, construction supervision and project management services, using state-of-the-art technology.

  • Jaiz Bank grows profit by 312.3% in first half

    Jaiz Bank Plc recorded a well-rounded performance in the first half  with significant growths in income and profitability.

    Key extracts of the interim report and accounts of Jaiz Bank for the six-month period ended June 30, 2017 showed that gross income grew by 45.7 per cent while profit rose by 312 per cent.

    Gross income rose to N3.08 billion in first half 2017 as against N2.11 billion recorded in comparable period of first half 2016. Profit jumped from N114.04 million in first half 2016 to N470.19 million in first half 2017. Jaiz Bank, as a pioneer, is still under a tax waiver for pioneer.

    The bank’s gross income from Islamic financing had grown by 26.7 per cent to N3.25 billion in first half 2017 as against N2.563 billion in first half 2016. The bank’s share as a Mudarib or equity investor also grew by 33.7 per cent from N1.99 billion to N2.66 billion. The report showed that the bank grew its total assets to N80.662 billion in the half year of 2017 compared to N65.230 billion in the corresponding period of 2016. The bank’s shareholders’ fund also increased from N11.302 billion in the first half of 2016 to N15.248 billion in the first half of 2017.

    Managing Director, Jaiz Bank Plc, Hassan Usman attributed the impressive performance in the first half to the support from the board, management and staff of the bank and the commitment to the business model which is hinged on a better life for all stakeholders.

    “The results attained so far are already proofs that we are doing better than 2016. This year will define how we move forward; we are in the process of creating a five-year plan that will further define our identity in the Nigerian banking space. We have ambitious ideas about what we would like to be, and the board and the shareholders are committed to ensuring we become a formidable player in the market,” Usman said.

    He said the bank would in the second half focus on opening more branches in different parts of the country and fostering its strategy of providing retail banking to a large segment of the society who are desirous of its products and services.

    “We are focused on building on our culture of ethics and taking the necessary decisions to align our perspective with client expectations,” Usman said.

  • College’s credit Society declares profit, elects managers

    Seven years after the Federal College of Education in Eha-Amufu, Enugu State, inaugurated Staff Cooperative Thrift and Credit Society for its staff, the Society has declared N4.4M dividend at N200 per unit share.

    The declaration was made by the president of the Society, Mallam Yahaya Musa Baba, during its first combined Annual General Meeting (AGM) held in the college. According to the president, the dividend covered 2008 to 2015 periods, adding that the share capital of N30.8M was also realized, while ordinary savings and interest for the periods were N861.4 million and N19.9 million.

    Mallam Baba disclosed that N211.1 million was the outstanding loan owed to the Coop, saying that the debt profile was recorded under IOU, Normal and Material loans advanced to the members. Mallam Baba said despite the challenges the Society faced at its inception, it was able to make positive impacts on members.

    He said: “Apart from loan administration to members in cash and material, we have succeeded in acquiring 153 plots of land for our members in the various parts of Enugu state and without any bank loan. The membership of the society has also increased from 60 in 2008 to 424 members in 2017 and we were able to get our account audited from 2008 to 2015.”

    Mallam Baba thanked the founding members of the Society and former Acting Provost of the college, Mr Romanus Onah, for their efforts to keep the Society strong.

    The provost, Prof B. N. Mbah, said the Society made enormous impact in the lives of the college workers, and improved their financial status. He said: “Members also have the opportunity to borrow money from the coffer of the Society and paying minimal interest on the loan.”

    New Board of Directors and members were elected during the theAGM, with Mallam Baba and Mr Augustine Attah returned unopposed as president and financial secretary.

    Others are Vice President, Dr Emmanuel Idu, Secretary, Mr Chikwere Chinedu Eze, and Treasurer, Dr Eunice Anumudu. Others members are Mr Emmanuel Ogugua, Mr Anthony Okwor, Mr Felix Nwaonwu, and Mr Osmond Aniaku.

    Prof Mbah advised the elected officers to live above board in discharging their responsibilities, while urging members to support Society’s management.