The Nation Newspaper

Tag: profits

  • Yudala eyes profits by 2020

    The Vice President of Yudala, pioneer online and offline e-commerce outfit, Prince Nnamdi Ekeh, has said the firm has set 2020 as the year to hit profitability, making it the first e-commerce  platform in Africa to return profits within its first five years of operations.

    Ekeh, who spoke on the sideline of Unusual Praise 2017, a gospel concert hosted by the Catholic Church of Divine Mercy in Lekki, Lagos, said the facts and figures on ground showed that Yudala is on track to set another record in what has been a ground-breaking journey in the e-commerce industry.

    He said: “At Yudala, our strategy is clear and distinct from anything else on offer in the market today. Our fusion of online and offline is not only futuristic, but one that has being copied by other global e-commerce giants. On the back of this, we have seen a consistent growth trajectory that will see Yudala emerge as the first profitable Nigerian e-commerce company by 2020.

    “Furthermore, we are renowned as arguably the most credible source of genuine products in the e-commerce sub-sector today. Every item on the Yudala platform, online or offline, is sourced directly from the manufacturers and this has clearly distinguished the Yudala brand in the market place.

    “In addition, we possess superior logistics and delivery timelines that have endeared us to shoppers. As a result, we have consistently seen repeat purchases from our customers. In most cases, we have also been able to win over new shoppers, the majority of whom, having patronised other platforms, have not looked back since their first experience of Yudala. Aligned to the foregoing is the passionate, committed and highly professional team we have in the company, all of whom have continuously displayed the hunger and capacity to deliver on our mandate.”

    Yudala is a platform for all and we respect the diversity of faith we have in the country,” he said.

    Launched a little over two years ago, Yudala has more than held its own in Nigeria’s keenly-competitive e-commerce sector, with the company’s futuristic fusion of an online platform with a chain of brick-and-mortar stores located nationwide instantly setting it apart from inception.

    And despite the well-known struggles of other established players in the sector, Yudala has continued to post impressive results, a trend that has seen optimism of the company soon turning the corner of profitability.

    Continuing, he noted: “We are aware of the challenges faced by players in the e-commerce sector. Research at our disposal indicates that less than 30 per cent of African e-commerce startups are profitable, with many of them hampered by lack of trust, shortage of financing, logistical difficulties and the largely-traditional approach to shopping still in play among these economies.

    “Here in Nigeria, the case is hardly different as we have seen many e-commerce start-ups exit the scene prematurely while the older ones have also consistently posted huge losses.

    “However, the story is different at Yudala. This is down mainly to our sound business model and approach. Indeed, while our investors expect us to deliver profits by 2022, our ambition is to surprise them by achieving this milestone earlier,” he said.

    Apart from its ambitious retail roll-out strategy and network of physical stores which has helped the company reach many unserved and under-served members of Nigeria’s over 190 million population, Yudala has also been bold in making a statement of intent with its emphasis on genuine products and best prices, aligned to a number of landmark innovations and eye-catching strategies which has endeared it to an ever-growing audience.

    In addition to pulling off the first recorded instance of a product delivery via drone in 2015 – a feat which captured the imagination of the e-commerce world – Yudala has succeeded in building up a steadily growing database of loyal customers, many of whom have come to rely on the company for the assurance of genuine products and unmatched best prices in the market-place which it stands for.

    Earlier in 2017, the company acquired Yes Mobile, a cosmopolitan high-value retail outfit with a multiplicity of stores in Lagos in what industry watchers described as a strategic duplex acquisition; one which went a long way in showing the level of ambition and determination to lead in the retail space currently driving the company.

     

  • ExxonMobil, Chevron profits slide on low oil prices

    ExxonMobil, Chevron profits slide on low oil prices

    ExxonMobil reported a 63% slide in first quarter profits following low crude oil prices and weak refining margins.

    It reported a profit of $1.8bn (£1.24billion), a sharp decline from $4.94billion for the same period last year and its lowest quarterly profit since 1999.

    Revenue dropped 28% to $48.7bilion, but it had strong results from its petrochemicals division.

    Rival Chevron faired even worse, with a quarterly net loss of $725million.

    That compared with a net profit of $2.57billion for the same period in 2015 and was worse than analysts had expected.

    John Watson, Chevron chief executive, said: “We are controlling our spend and getting key projects under construction online, which will boost revenue.”

    Shares in ExxonMobil rose 1.4% in New York on Friday, while Chevron fell 0.6%.

    Meanwhile, oil prices hit their highest levels of the year on Friday, driven up by lower US production and a weak dollar.

    Brent crude was up 12 cents at $48.26 a barrel in afternoon trading, while US oil rose 57 cents to $46.60.

    US oil production has continued to fall in recent months, easing concerns about oversupply, while the dollar has lost almost 2% of its value against other global currencies in the past week.

    A weaker US dollar typically contributes to a rise in oil prices, because oil is priced in dollars. When the dollar weakens against other currencies, oil becomes cheaper to buy, pushing up demand.

    However, the latest rise in oil prices may be limited by a future increase in Middle East production, according to a note released by Deutsche Bank.

    Iraq and the UAE are likely to raise production after maintenance issues are resolved, Deutsche indicated, and Saudi Arabia may also increase production significantly.

    “A sustainable rise in Opec production may be just around the corner, and… the rally may pause,” Deutsche analysts said.

    But this may be tempered by events in Latin America, where Venezuela is struggling to maintain its crude output, according to a report from Eurasia Group.

    The organisation reported that low oil prices over the past two years have meant Venezuela’s government is running out of cash to keep its state-owned oil pumps operational.

    Hamza Khan, senior commodity strategist at ING, said: “The issue is that we haven’t seen price rallies … correlate with fundamentals. The fundamentals – high stocks, high production – haven’t changed.”

    The oil price has fallen dramatically over the past two years since Brent crude hit a peak of $115 a barrel in June 2014.

    One factor behind the fall has been slowing demand from China and other developing economies.

    Supplies have also increased, most notably from new sources of US shale oil.

    In addition, big producers such as Saudi Arabia have not reduced output to try to push up prices.

    Earlier this month, a meeting of the world’s leading oil exporters failed to agree a cap on production.

    Saudi Arabia appeared willing to freeze output only if all members of the Opec oil producers’ cartel agreed, including Iran.

    But Iran maintained it would continue the increase in oil production it has followed since economic sanctions were lifted earlier this year.

  • MTN sets aside $600m for ‘fine’ as profits dip

    MTN sets aside $600m for ‘fine’ as profits dip

    • Mulls Nigeria listing
    • To cut dividend

    South Africa’s MTN Group yesterday released its result for last year, posting huge decline in its profits and setting aside 9.3 billion rand ($600 million) to cover the potential settlement of the outstanding  N730 billion of the N780billion fine imposed on it by the Nigeria Communications Commission (NCC) over subscriber identity module (SIM) card registration rule breaches. The telco had last week, made a down payment of N50 billion in “good faith” to the Federal Government.

    Its Group Executive Chairman Phuthuma Nhleko yesterday also said the telco may cross-list its shares on the floor of the Nigeria Stock Exchange (NSE) once its dispute with its regulator in the country is settled.

    Though full details of the result were kept under wraps, the telco was said to have posted a more than 50 per cent dip in its annual profit.

    Weighed down heavily by economic realities in Nigeria, its cash cow, the telco said it would cut its full-year dividend to a minimum of 7 rand this year due to uncertainty surrounding the payment of the fine and the policy of the Central Bank of Nigeria (CBN) that has led to “dollar scarcity.”

    It however said while weak economic conditions and heightened regulatory pressure impacted performance, it continues to invest in Nigeria for the long term

    In a statement, the carrier lamented that the Nigerian operation in particular experienced a very challenging year. Weak economic conditions and the limited availability of dollars contributed to a lower-than-expected performance. Heightened regulatory pressure also severely impacted  its operation in the country. This was particularly evident in the suspension of regulatory services and the subscriber registration requirements, which meant that MTN had to disconnect 6.7 million subscribers. MTN Nigeria is working hard to complete the registration process in line with the NCC’s requirements.

  • Odu’a posts N759m profits

    Odu’a Investments Limited has posted profit before tax of N759 million for its 2014 fiscal year.

    The profit represents an increase of 53 per cent over the previous year’s N495 million.

    But the total profit before tax of the entire group, including associate companies, stands at N2,565,763 billion.

    The company paid N150 million dividends to its five shareholders. They are the Southwest states of Oyo, Osun, Ondo, Ekiti and Ogun. They went home with N30 million each.

    Addressing reporters after its Annual General Meeting (AGM) held at the Cocoa House, Ibadan headquarters of the conglomerate, its Group Managing Director (GMD), Mr Adewale Raji, attributed the growth in profit to board and management’s decision to review the internal dynamics of the company.

    He said the effort “resulted in functional re-engineering and staff streamlining of our operation to ensure efficiency and effectiveness with clearly defined roles, responsibilities and reporting lines.”

    Raji further disclosed that investments in equity and real estate contributed the highest percentages to the profit.

  • BA reports big jump in quarterly profits

    British Airways (BA) owner International Airlines Group (IAG) has reported a big jump in quarterly profits. IAG reported a 25 per cent rise in pre-tax profits to €449m (£315m) for the three months to 30 June.

    Chief executive Willie Walsh told the BBC’s Today programme the results “reflect the underlying strength of the airlines”.

    IAG is in the process of buying Irish carrier Aer Lingus.

    The group is still waiting for approval from stakeholder Ryanair, which Mr Walsh is confident they will receive.

    “What Ryanair has said is that they do intend to sell us their stake,” he said.

    Mr Walsh also said the weakening euro had an impact on the company’s results in the first half of the year: “We continue to take cost out of the business, with both employee and supplier unit costs down at constant currency, and improvements in productivity levels,” said Mr Walsh.

    The company said that at current fuel prices and exchange rates, IAG’s outlook remains unchanged.

    Since the formation of IAG through the merger of BA and Iberia in 2011, Iberia has been undergoing a massive restructuring programme, with jobs and salaries being cut.