Nigerians have dominated the latest Forbes’ list of wealthiest black billionaires in the world, with the likes of Aliko Dangote and Mike Adenuga occupying top spots.
The list has thirteen billionaires on it, most of whom are either from Nigeria or the United States of America. Specifically, Nigeria and the United States accounted for four billionaires each, while Zimbabwe, Angola, South Africa, Canada and Britain had one representative each on the list which was published on March 5th, 2019.
Nigerian Billionaires on the list
Aliko Dangote, who retained his position as the richest man in Africa, topped the list with a net worth of $10.9 billion, according to Forbes. He made his fortune from Sugar, Cement and flour production. Africa’s richest man is building an oil refinery to produce 6500,000 barrels a day when it comes on stream.
Mike Adenuga follows closely with an estimate of $9.1 billion. Adenuga is the founder and Executive Chairman of Globacom, a Nigerian mobile phone network, Conoil, one of Nigeria’s first indigenous oil exploration companies in the early 90s and Cobblestone Properties, with hundreds of prime residential and commercial property all over Nigeria.
The third Nigerian on the list is Abdul Samad Rabiu, the Founder and Executive Chairman of BUA Group. BUA Group is a Nigerian conglomerate with interests in sugar refining, cement production, real estate, steel, port concessions, manufacturing, oil gas and shipping.
Mr Rabiu was named as the continent’s 16th richest billionaire with estimated wealth of $1.6 billion. He recently merged his privately owned 1.5 million metric tonnes Kalambaina Cement Company with listed firm the 500,000 mtpa Cement Company of Northern Nigeria (CCNN), which he controlled as Chairman of the Board of Directors in a $1.1billion transaction in 2018.
Also on the list is Nigeria’s first female billionaire Folorunsho Alakija with a net worth of $1.1 billion. Alakija is the founder of Famfa Oil, a Nigerian company that owns a lucrative oil block on the Agbami deep-water oilfield in Nigeria.
Other billionaires on the list
United States: Robert Smith, $5 billion; David Steward, $3 billion; Oprah Winfrey, $2.5 billion, Michael Jordan, $1.9 billion.
Other countries: Strive Masiyiwa, $2.4 billion, Zimbabwean; Isabel Dos Santos, $2.3 billion, Angolan; Patrice Motsepe, $2.3 billion, South African; Michael Lee-Chin, $1.9 billion, Canadian and Mohammed Ibrahim, $1.1 billion, British.
Alakija of Nigeria and Oprah Winfrey of the US and Angolan investor Isabel dos Santos are the only black female billionaires in the world.
GSK in big trouble as losses mount
The results were less than impressive with several key indicators showing a year-on-year decline.
GlaxoSmithKline Consumer Nigeria Plc (“GSK Plc” or “the Company”) is a public limited liability company with 46.4% of the shares of the Company held by Setfirst Limited and Smithkline Beecham Limited (both incorporated in the United Kingdom); and 53.6% held by Nigerian shareholders.
The ultimate parent and controlling party is GlaxoSmithKline Plc, United Kingdom (GSK Plc UK). The parent company controls GSK Plc through Setfirst Limited and Smithkline Beecham Limited.
The Company recently published its unaudited first quarter (Q1) 2021 consolidated financial statements for the period ended 31 March 2021.
The results were less than impressive with several key indicators showing a year-on-year decline. For example, Group revenue (turnover) declined from ₦4.99 billion in Q1 2020 to ₦3.46 billion in Q1 2021 a drop of over 30.66%. The revenue drop was due to a sharp decline in the local sale of its healthcare products.
Total loss after tax as of Q1 2021 was ₦238.07 million compared to a profit after tax of ₦113.47 million for the same period to Q1 2020.
The company is essentially divided into two segments viz: Consumer Healthcare and Pharmaceuticals. While the Healthcare segment was largely profitable in Q1 2021 (making a profit before tax of ₦ 8.73 million by March 31, 2021, the pharmaceuticals segment made a loss of ₦262.93 million in the same period.
The Consumer Healthcare segment of the company consists of oral health products, digestive health products, respiratory health products, pain relievers, over the counter medicines, and nutritional healthcare; while the pharmaceutical segment consists of antibacterial medicines, vaccines, and prescription drugs. While goods for the consumer healthcare segment are produced in the country, the pharmaceuticals are all imported.
The largely imported pharmaceutical products are thus exposed to the vagaries of foreign currency fluctuations coupled with a negligible to no revenue from the foreign sale of its healthcare products (same as in Q1 2020) as it barely exports its products out of the country.
The cost of importing the antibacterial, vaccines and prescription drugs, and the significant local operating expenses wiped off the marginal gross profits made by the pharmaceutical segment of the company. In effect, the gross profit of ₦508.12 million made by the pharmaceutical segment of the company was eliminated by an operating expense of ₦735.7 million and this resulted in a net loss for the pharmaceutical segment of the business.
Apart from the impact of imported pharmaceutical products as already discussed, other issues that affected the company’s Q1 2021 results and are likely to continue to affect its performance in future include:
- A limited product mix that has only the likes of Macleans and Sensodyne (Oral Healthcare); Pain relievers (Panadol and Voltaren); Digestive Health (Andrews Liver Salt); and Respiratory Health (Otrivin and Panadol Cold and Catarrh) all within the Consumer Healthcare segment.
- Increased competition, particularly from local pharmaceutical manufactures of similar over the counter medicines and other prescription medications and vaccines.
In addition, in October 2016, GSK Plc divested its drinks bottling and distribution business that manufactures and distributes Lucozade and Ribena in Nigeria, and other assets including the factory used for the drinks business to Suntory Beverage & Food Limited. The loss in revenue from these popular brands continues to impact its topline.
GlaxoSmithKline (GSK) is a global healthcare company and is well-known and acknowledged for its pioneering role in discovering and distributing vaccines for the likes of hepatitis A and B, meningitis, tetanus, influenza, rabies, typhoid, chickenpox, diphtheria, whooping cough, cervical cancer and many more.
It is also renowned for its manufacture and distribution of prescription medicines such as antibiotics and treatments for such ailments as asthma, HIV/AIDS, malaria, depression, migraines, diabetes, heart failure, and digestive disorders.
Perhaps GSK Plc’s fortunes may change if the company is able to obtain the parent company’s licence to manufacture GSK-owned vaccines and prescription medicines within the country while also exploring the possibility of extending the sale of its products outside the shores of the country.
Since different expertise is required for vaccines and prescription drug manufacture and distribution as compared to manufacture and sale of consumer healthcare products, perhaps another alternative may be for the company to create two separate companies with one company being a 100% vaccines and prescription drug pharmaceutical manufacturing and distribution company while the second company specializes entirely in the manufacture and sale of consumer healthcare products.
As a result of the Q1 2021 performance, the company’s earnings per share (EPS) dropped to -20 kobo compared to the 9 kobo earnings per share reported in Q1 2020. At the start of 2021, GSK Plc’s share price was ₦6.90 but the company has since lost over 10% of its price valuation as the company’s share price closed at ₦6.20 on April 30, 2021.
Buhari suspends NPA MD, Hadiza Usman, approves investigative probe panel
President Buhari has approved the immediate suspension of the MD of the Nigerian Ports Authority, Hadiza Usman.
President Muhammadu Buhari has approved the immediate suspension of the Managing Director of the Nigerian Ports Authority (NPA), Hadiza Usman.
The suspension of Usman is to allow the panel of inquiry which is to be set up by the Federal Ministry of Transportation, to investigate the management of the agency to effectively carry out the task.
This disclosure is contained in a statement issued by the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, through some tweet posts on his official Twitter handle on Thursday, May 6, 2021.
Shehu pointed out that the suspension follows the approval of the recommendation of the Federal Ministry of Transportation by President Muhammadu Buhari.
The statement from Garba Shehu reads, “President Muhammadu Buhari had approved the recommendation of the Ministry of Transportation under Rt. Hon. Rotimi Amaechi for the setting up of an Administrative Panel of Inquiry to investigate the Management of the Nigerian Ports Authority (NPA).
The President also approved that the Managing Director, Hadiza Bala Usman, step aside while the investigation is carried out. Mr Mohammed Koko will act in that position.
The panel is to be headed by the Director, Maritime Services of the Ministry while the Deputy Director, Legal of the same ministry will serve as Secretary. Other members of the panel will be appointed by the Minister.”
Nairametrics | Company Earnings
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