The Nation Newspaper

Tag: Profit

  • Transcorp grows net profit by 278% in Q1

    Transcorp grows net profit by 278% in Q1

    Transnational Corporation of Nigeria (Transcorp) Plc grew its top-line and bottom-line significantly in the first quarter with net profit after tax rising by 278 per cent to N3.15 billion.

    Key extracts of the three-month report of the conglomerate for the period ended March 31, 2014 showed that profit after tax rose from N833.7 million in first quarter of 2013 to N3.15 billion in first quarter of 2014. Profit before tax increased from N1.31 billion to N3.77 billion.

    The report indicated that turnover rose to N10.54 billion in 2014 as against N3.55 billion recorded in comparable period of 2013. Gross profit stood at N7.69 billion compared with N2.76 billion while operating profit increased from N1.43 billion to N4.67 billion.

    The company has distributed N1.9 billion as its first ever cash dividends to shareholders following a double in profit to N9 billion during the year ended December 31, 2013.

    Extracts of the audited reports showed that turnover rose to N18.8 billion in 2013 as against N13.2 billion recorded in 2012. Profits before tax rose from N3.9 billion in 2012 to N9.0 billion in 2013.

    President and Group Chief Executive officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Obinna Ufudo, has said the company will be targeting group profit of about N25 billion this year.

    According to him, this business year promises to be another very bright year as the conglomerate is on the track to deliver on all its objectives.

    “Our key target is to grow group profits to over N25 billion during the year. We intend to achieve this by the continued diversification and deepening of our existing businesses. In our power business, we will focus on concluding the rehabilitation of a number of identified turbines in order to improve generating output at the Ughelli plant to 700 megawatts,” Ufudo said.

    He said the full year audited accounts reflect the conglomerate’s commitment to its long term strategic plan, which should translate into strong and sustainable growth.

    “We are excited about the achievements we recorded across our businesses within the past year. Our entry into the power sector has been a significant driver and we are already running ahead of our 2014 estimates. We expect significantly better results this year, as our diversification and growth strategies continue to gain momentum,” Ufudo said.

    At the Annual General Meeting of the company, chairman, Transnational Corporation of Nigeria (Transcorp), Mr. Tony Elumelu, assured shareholders that the conglomerate used the 2013 business year to solidify its transformation noting that the very strong financial and operating results in the year were evidences of the success of the transformation.

    According to him, the company’s results have begun to show the benefits of the discipline execution of strategy while shareholders have begun to see their rewards.

    Elumelu noted that the principal cause of asset growth for the group and company was its acquisition of the Ughelli Power Plant, Nigeria’s largest generating facility and where its influence has already seen a doubling of capacity.

    “I believe that we will build on the solid foundation laid over the last couple of years to begin an era of steady and increasing dividend payment to our shareholders,” Elumelu said.

  • STI posts N1.5b profit

    SovereignTrust Insurance (STI) Plc, has posted a profit of N1.58billion in the year ended December 31, 2012. In 2011, it made N513 million.

    The firm’s Managing Director Mr Wale Onaolapo, made this known to reporters ahead of the firm’s Annual General Meeting (AGM) scheduled for next month.

    He said the gross premium rose from N6.4 billion to N7.7 billion while total assets stood at N7.1 billion at the end of the financial year as against N6.1billion recorded the previous year.

    According to him, the journey to getting the 2012 accounts of the company approved by National Insurance Commission (NAICOM) has been quite hectic and that the company was excited to pass the International Financial Reporting Standard (IFRS) litmus test.

    He said the lessons learnt from the process could not be undermined just as the company is committed to operating under ethical and professional standards.

    He reiterated the company’s unwavering commitment to creating value to both shareholders and stakeholders.

    He said: “The path through the adoption of the IFRS was not without its challenges but with the perseverance and doggedness of every member of staff, we were able to overcome and succeed as a team.”

    “Amid all these, our 2012 performance is quite commendable even though we would have loved to achieve more. STI will continue to deliver on all promises made and live up to actualissing its vision of becoming the leading brand providing insurance and financial services of global standards in no distant time.’’

     

  • Conoil grows half-year profit by 255 per cent

    Conoil grows half-year profit by 255 per cent

    Conoil Plc has posted an unprecedented performance for the first half of the year 2013.

    According to a statement issued by the company, the oil marketing giant recorded 255 per cent increase in profit after tax from N450.9 million in 2012 to N1.6 billion in 2013.

    The performance demonstrated the company’s resilience to overcome the overwhelming challenges in the downstream oil sector.

    The company also declared a whopping N1.98 billion as profit before tax against N663.1 million recorded in the corresponding half year period in 2012.

    Revenue rose to N79.6 billion from N76.2 billion, while Earnings per Share (EPS) increased significantly from 65kobo to 230 kobo.

    The company attributed this sterling performance to the adoption of robust growth strategies, efficient management of resources and total elimination of waste in its operations.

    The company assured its shareholders of its optimism to sustain and grow the impressive performance in the remaining six months of the year. It also assured juicier returns for shareholders at the end of the current financial year.

    Revealing its edge, the company said it strengthened and repositioned its core businesses, with huge investments in retail network expansion, which involved building multi-million naira mega stations across the country.

    In the statement issued to announce the result, the company emphasised: “For us, the downstream remains fundamentally attractive now, in the medium and long term.

    “With our clarity of direction and focus, our company’s long term success is assured.”

    It added: “We will sustain our improved performance and realise our aspiration to become the leading petroleum products marketer and one of the most profitable quoted companies.

  • Access Bank declares N5.7b dividend as profit drops by 20%

    Access Bank declares N5.7b dividend as profit drops by 20%

    The board of Access Bank Plc at the weekend said it would be distributing N5.72 billion as interim dividends for the first half of this year in spite of substantial decline in the performance of the bank during the period.

    Key extracts of the interim report and accounts of Access Bank showed top-down declines in key performance indicators with profits before and after tax dropping by 14 per cent and 20.2 per cent respectively. Gross earnings had declined by 5.3 per cent.

    The interim dividend recommendation, similar to previous interim payouts in 2012, implies an interim dividend per share of 25 kobo. The dividends would be paid on September 17, 2013 to shareholders in the book of the bank as at close of business on September 4, 2013.

    The report showed that gross earnings dropped from N109.96 billion in first half 2012 to N104.13 billion in first half 2013. Profit before tax was lower at N26.09 billion as against N30.21 billion recorded in comparable period of 2012. Profit after tax slipped from N26.4 billion to N21.1 billion.

  • Dangote Cement posts N107.7b half-year profit

    Dangote Cement Plc has announced a profit before tax of N107.7 billion in the half-year ended June 30, 2013.

    According to a statement from the company, profit before tax rose by 52.8 per cent compared with N70.8 billion recorded in the corresponding period last year.

    Gross profit was on the upward swing also, increasing by 43.8 per cent, from N91.9 billion to N132.1 billion, while operating profit moved up from N76.4 billion to N111.1 billion, indicating an increase of 45.4 per cent.

    The management in a statement highlighting the performance of the firm and endorsed by the Chief Executive, Devakurma Edwin, said Dangote Cement increased sales in Nigeria by recording sales of 6.76 million tonnes in the first half of 2013, representing 29.4 per cent sales increase.

    The management noted that the improved sales figure was more than double the growth rate of the overall Nigerian cement market, estimated to be around 14.2 per cent in the same period.

    He said: “We estimate our market share to have remained at about 62% across the first half of 2013. Pricing remains steady across our operations. The strong growth we achieved was satisfied by additional output from the Ibese plant, which opened in the first quarter of 2012, and higher output from Obajana (the new Line 3 came on stream in the first quarter of 2012). Furthermore we achieved this strong rate of growth despite the fact that our Gboko plant was mothballed during January.

     

  • Why we made lower profit, by Japaul

    Chairman, Japaul Oil & Maritime Services Plc, Major General Omosebi (rtd), has explained that adjustments for depreciation and newly introduced policies for preparations of statutory financial reports were responsible for the drastic decline in the profit of the company in 2012.

    According to him, while the turnover had increased and raised hopes of improved bottom-line in 2012, the company’s net profit was adversely affected by higher-than-expected depreciation and financing expenses.

    He said the companies acquired some new vessels towards the end of the year and decided to charge depreciation on them in order to readjust the company’s depreciation to a more ideal position, a situation that increased depreciation on profit to about N2.1 billion, N1.56 billion above the rate for previous year.

    “Some of the new vessels that we bought are financed with loans from the bank, hence the high amount of interest that we paid during the year. Moreover, the bad debt that was written off against our profit for the year is N600 million because one of our major debtors, NAFTOGAS, got liquidated. Though we believe that we will get some money back from the appointed liquidator, we decided to write off the amount right now,” Omosebi said.

    He noted that the need to comply with the requirements of the International Financial Reporting Standard (IFRS) necessitated several adjustments in the accounts of the company, which were written off against the company’s profits and reserves and eventually threw the reserves to negative from N2.9 billion.

    He, however, reassured shareholders on the prospects of the company noting that it has garnered huge demand and contracts that would propel its growth in the years ahead.

    He said the company plans to acquire six more vessels between now and 2014 with combined income earning capability of $150,000 per day, which would boost the existing income stream.

    “The operating environment is so good that if we have 50 vessels today, the market will absorb them because the Nigeria Local Content Policy has created an enabling environment for all local maritime companies to do well. It is evident therefore that there is no limit to our growth despite all the challenges we have been facing,” Omosebi said.

    Audited report and accounts of Japaul for the year ended December 31, 2012 showed that turnover increased from N10.25 billion in 2011 to N12.28 billion in 2012. Gross profit rose from N4.72 billion to N4.999 billion. Profit before tax however dropped from N1.45 billion to N532.71 million. Profit after tax declined from N980.44 million to N283.73 million. Earnings per share dropped from 15.66 kobo to 4.53 kobo. With these, the company’s shareholders’ funds dropped from N22.56 billion to N17.08 billion.

  • ‘Soap making is profitable business’

    The liquid soap business has grown from nothing to something , becoming one of the biggest in the manufacturing industry.

    The domination of the market by multinationals did not deter a micro entrepreneur, Mr Francis Osezele, who is the Managing Director, Freedom Aluminium Company,from trying his hand in the business.

    He believes value lies in transforming simple commodities into highly profitable brands. This is why he has found liquid soap making an area to invest in.

    He said every household need soap for laundry.

    Although he faced financial challenges at the beginning, his ability to persist despite the challenges by adapting to the circumstances of the market was a big part of his success.

    He started with N20,000, after training at the Federal Institute of Industrial Research Oshodi (FIIRO), Lagos. Today, the business is worth about N1 million.

    He has gradually transformed it into a profitable venture. Having understood the art of making a good soap that can meet people’s needs as well as the requisite marketing skills, he decided to raise some capital to start his own business.

    Today, he is doing well. Besides, he has registered the product with the National Agency for Food, Drug Administration and Control (NAFDAC).

    But access to loan remains a big challenge to him.

    In the beginning, he did not start as a soap manufacturer. Initially, he sold aluminum products. But because the business was not growing, he began to search for a more suitable and affordable alternative. He experimented and created a soap that works well. Since then, many doors have opened to him since he started the soap making venture.

    His goal is to provide high quality products that are used by almost anyone and expects the business to grow at a steady pace. Besides, he intends to focus on developing new products and anticipates the business to grow to a level that would require him to hire several full time employees. He said new varieties of soap are being explored.

    Osezele believes success in business is in producing high quality products that either solve a problem or create fun.

    The producer of Kleentex liquid soap has reason not to regret his decision. He said the key issues in the business have to do with one’s ability to produce qualitative soaps and market them in an efficient way.

    There are three types of soaps, namely: detergent, bar and liquid. But he chose to make liquid soaps.

    Many micro entrepreneurs in the business started small in their kitchen. A local welder can help to produce a mould by using a cutting machine and a stamp, through which the soap’s name can be engraved on the soap bar.

    Supplies needed for the business include colorants, melt-and-pour soap, premade bases, containers, colouring, packaging supplies, fragrances, and essential oils.

     

  • Transcorp’s net profit drops by 57%

    Transcorp’s net profit drops by 57%

    Transnational Corporation of Nigeria (Transcorp) Plc suffered a major reversal in its last year operations year as sluggish sales compounded high costs to shave off more than N3.3 billion from the net profit of the conglomerate.

    Audited report and accounts of Transcorp for the year ended December 31, 2012 showed that net profit after tax slumped by 56.8 per cent from N5.86 billion in 2011 to N2.53 billion in 2012. The decline depressed earnings per share from 7.74 kobo to 4.38 kobo.

    The report showed a top-down negative performance with marginal decline in sales magnified down the line by external and internal costs. Turnover dropped slightly from N13.90 billion to N13.24 billion. Gross profit slipped from N10.44 billion to N9.77 billion while operating profit dropped from N4.59 billion to N3.76 billion.

    Substantial increase in interest income moderated equally significant increase in interest expense, mitigating the adverse impact of the conglomerate’s huge debt exposure. Finance income jumped from N276.67 million to N1.04 billion while finance cost rose from N261.32 million to N860.25 million. With these, profit before tax dropped from N4.61 billion in 2011 to N3.95 billion in 2012.

    Transcorp is seeking to recapitalise its business through a rights issue of 12.91 billion ordinary shares of 50 kobo each at N1 per share. The rights issue, pre-allotted on the basis of one new share for every two held, is expected to close on Friday.

    The net proceeds of the rights issue estimated at N12.52 billion would be used mainly to refinance the loan taken to acquire its power business-Ughelli Power Plc. About 79 per cent of the net proceeds amounting to N9.84 billion would be used to refinance Ughelli Power. The conglomerate would use N1.63 billion, 13 per cent of net proceeds, for exploration and development of its oil block, Oil Prospecting Licence (OPL) 281.

    The balance of N1.05 billion, representing 8.0 per cent of net proceeds, would be used to develop new hotels Port Harcourt and Lagos; in order to boost the conglomerate’s hospitality business in the South-South and South-West of Nigeria.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr Tony Elumelu, in the rights circular to shareholders, said the recapitalisation was in recognition of the need to reposition the company for future challenges and business opportunities.

    He said the company’s vision is to create sustainable value for its stakeholders in its chosen markets.

    “In order to realise this long-term objectives, the company is making every effort to identify and take advantage of every investment opportunity that will complement its long-term strategic objectives. We will continue to look out for investment opportunities that will enhance value creation for our stakeholders,” Elumelu said.

    He urged shareholders to pick up their rights in order to continue to enjoy the full benefits of their investments pointing out that the company’s future holds plenty of interesting opportunities as it would continue to achieve progressive levels of success in all areas of its business.

     

  • UBA’s Q1 profit rises by 19% to N15.6b

    UBA’s Q1 profit rises by 19% to N15.6b

    United Bank for Africa (UBA) Group’s deposit base spiralled to N2.02 trillion in the first quarter of the year as the bank continued to win market share amidst growing customer’s confidence.

    First quarter report for the period ended March 31, 2013 indicated 13.5 per cent increase in deposits to a new high of N2.02 trillion, building on the 21.1 per cent growth that saw deposit base rising to N1.78 trillion in the 2012 business year.

    The latest report indicated that the banking group has sustained its growth momentum into the first quarter of the year. Growth in deposits is generally seen as a strong indicator of increased customer confidence in a financial institution.

    Group Managing Director, United Bank for Africa (UBA) Group, Phillips Oduoza, attributed the significant growth in the bank’s deposit base to a new approach to delivering products and services to customers.

    He said the bank was moving in the right direction to deliver on key financial projections for 2013 with a focus on maximizing value across all of the bank’s businesses.

    “We are pleased with our improving performance and a strong start to 2013. We see emerging opportunities to fundamentally improve our market positioning. We will continue to strategically invest in our businesses, manage our expense and leverage our competitive advantage in service and convenience to win customers and take market share,” Oduoza said.

    Further analysis of the first quarter results showed that the group added additional N10.4 billion to gross earnings to N62.8 billion. The group’s operating income also rose 17.4 per cent to N44.6 billion while profit after tax closed at N15.6 per cent, representing an increase of 19.1 per cent. The bank also sustained growth in balance sheet size, indicating its increasing market share in the African banking industry. Group total assets closed the first quarter at N2.43 trillion, a 7.1 per cent increase while the bank’s total equity grew at a marginally higher rate of 8.8 per cent to N209.4 billion compared to N192.5billion in the same period of 2011.

    The group results also showed significant improvement in efficiency with an expansion in net interest margins from an average of 5.2 per cent to 6.0 per cent, implying an increasing efficiency in managing earning assets. The bank’s first quarter results also show a drop in costs of managing the business while average return on assets also showed an improvement.

     

  • Skye Bank records N5b Q1 profit

    Skye Bank records N5b Q1 profit

    Skye Bank Plc made good early strides in this financial year as the bank pooled a pre-tax profit of N4.6 billion on the back of 25 per cent increase in the top-line in the first quarter.

    Interim report and accounts of Skye Bank for the first quarter ended March 31, 2013 showed that it recorded significant growths in the incomes and profitability, with revenue growth largely driven by an impressive increase in its core banking operations.

    The report indicated that gross earnings rose by 24.6 per cent to N34.69 billion in first quarter 2013 as against N27.84 billion recorded in comparable period of 2012. Interest income had grown by 18.2 per cent from N23.04 billion to N27.22 billion, underlining the increasing market share in the banking industry. Profit before tax stood at N4.63 billion as against N4.09 billion in corresponding period while profit after tax rose from N3.48 billion to N3.71 billion.

    The balance sheet position of the bank remains strong with total assets and deposits of N1.1 trillion and N803.6 billion respectively. Shareholders’ funds closed the first quarter at N105.72 billion.

    The report raises expectations that the bank would, in the current financial year ending December 31, 2013; significantly surpass its performance in the previous year, when the bank had recorded the highest industry growth in net profit.

    Commenting on the outlook for the bank, Group Managing Director, Skye Bank Plc, Mr Kehinde Durosinmi-Etti, said the first quarter results placed the bank in a good stead to sustaining its impressive year-on-year performance.

    “We are glad to announce our first quarter 2013 results with measured growth in key performance indices. Our improved risk management processes and various efficiency practices are a signpost towards an optimistic financial year,” Durosinmi-Etti said.

    According to him, the bank’s top-line growth of 25 per cent was an indication of the increase in its business volume while its balance sheet size remained robust at N1.1 trillion.

    “We remain confident that despite intense competition, we are on track to deliver on our set targets for the year,” Durosinmi-Etti said.

    The report raises expectations that the bank would, in the current financial year ending December 31, 2013; significantly surpass its performance in the previous year, when the bank had recorded the highest industry growth in net profit.

    The audited report and accounts for the year ended December 31, 2012 had shown impressive growth in profitability as the bank rode on the back of expansive business base and increasingly efficient cost management to deliver impressive returns to shareholders.

    The report showed that profit after tax leapt to N12.64 billion in 2012, representing a remarkable increase of 872.6 per cent on N1.30 billion recorded in 2011. Profit before tax had leapt by 480.9 per cent from N2.84 billion in 2011 to N16.51 billion in 2012. The bank also recorded significant improvement in the top-line as gross earnings rose by about 25 per cent from N102.36 billion to N127.73 billion.

    On the basis of the impressive net earnings, the board of the bank has recommended an increase in cash dividend per share from 25 kobo paid for 2011 business year to 50 kobo for 2012.