Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have impact on the firms themselves or shareholders.
Examples of corporate actions include the payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.
Here is a run down of corporate actions that took place last week and those expected this week.
Corporate actions that took place last week
Prestige Assurance released its results for the 2018 financial year. Gross premium written increased by 23.6% to N4.7 billion in 2018, the highest in half a decade. Profit after tax however fell by 20.3% to N423 million. The company declared a dividend of three kobo per share.
AIICO Insurance released its full year 2018 results. Gross premium written increased by 17.5% to N37.6 billion in 2018. Profit after tax rose sharply by 158% to N3.1 billion in 2018. The firm declared a dividend of N0.06 per share.
NAHCO Aviance released its full year 2018 results. Revenue increased by 24% to N9.8 billion in 2018. Profit after tax declined by 74.7% to N196 million in 2018. The company declared a dividend of 25 kobo per share. The decline was largely due to a spike in operational expenses and administrative costs.
Abbey Building Society Plc released its full year results for the 2018 financial year. The firm recorded a loss after tax of N665 million.
Q1 2019 results
Tier one lenders GT Bank, Access Bank and Zenith Bank released their Q1 2019 results.
Guaranty Trust Bank’s gross earnings were up 1.2% to N110 billion in 2019. Profit after tax also increased by 10.5% to N49.3 billion in 2019.
Zenith Bank’s gross earnings dipped by 6.9% to N158 billion. Profit after tax rose 6.8% to N50.2 billion.
Access Bank’s gross earnings rose by 16% to N160 billion. Profit after tax jumped by 88% to N41.1 billion. GMD of the bank Herbert Wigwe, during a conference call, attributed the rise to USD swaps which were converted to fixed income securities. He was also confident that the bank would maintain the performance after the position had been wound down.
Unilever Nigeria had a decline in both topline and bottom line. Revenue declined by 20.6% to N19.2 billion in 2019. Profit after tax fell by 44% to N1.5 billion in 2019.
Africa Prudential’s Q1 2019 results show a decline in topline and bottom line. Gross earnings dipped by 9.19% to N869 million. Profit after tax fell by 17.1% to N381 million In 2019.
United Capital also had a decline in its first quarter 2019 results. Gross earnings dropped by 34% to N1.45 billion. Profit after tax fell sharply down 49% to N644 million.
Golden Breweries Plc issued a press statement debunking media reports that it had resumed operations.
Grief at Greif
Greif Nigeria Plc, in board resolutions sent to the Nigerian Stock Exchange, stated that it had continued to record losses in the first quarter of the 2019 financial year. Efforts to win back a key customer and increase its prices were unsuccessful.
The company had therefore resolved to stop receiving new orders and suspend production indefinitely.
McNichols Plc held a board meeting where its Q1 2019 results were considered. The board also approved the appointment of Olusegun Layode as a non executive director and chairman. He replaces Ozurumba Afigbo, who had been acting chairman.
UAC Nigeria held an investor call following the release of its full year 2018 results a few weeks ago. Management stated that it was taking steps to address UPDC Plc’s capital structure (which would be concluded before the end of the year) as well as tweaking operations at UAC Foods.
FBN Holdings moved the qualification date for its dividend to the 23rd of April, 2019, from the earlier date of the 22nd of April, 2019 due to the Easter holiday. The shareholders’ register will also be closed from the 24th to 29th of April, 2019 (both days inclusive).
The Holdco will be paying a dividend of 26 kobo per share.
Corporate actions taking place next week
Here is a rundown of corporate actions taking place next week.
FBN Holdings and Julius Berger Plc will be holding board meetings to consider respective Q1 2019 results.
UBA, Custodian, Sterling Bank, Ecobank Trans International (ETI), Fidelity Bank and FCMB will be holding their Annual General Meetings this week.
UBA Plc will be holding its Annual General Meeting on Tuesday, 23rd of April, 2019.
Custodian Investment Plc will hold its AGM on Wednesday, the 24th of April, 2019.
Sterling Bank and Ecobank Trans International (ETI) will hold their AGMs on Thursday, the 25th of April, 2019.
Access Bank had also tentatively fixed its AGM for Thursday, the 25th of April, 2019.
Fidelity Bank and FCMB will be holding their AGMs on Friday, the 26th of April, 2019.
Heavy sell-off in Guinness shares leads to N6.9 billion market value loss in a single day
Shares of Guinness Nigeria Plc suffered a 9.89% loss today.
Guinness Nigeria Plc suffered a 9.89% loss today following a heavy sell-off in the shares of the brewer. This triggered a market value loss amounting to about N6.9 billion at the close of trading activities on the Nigerian Stock Exchange, as investors scaled-down stakes in the brewer.
Data tracked at the close of the market today revealed that the shares of GUINNESS declined from N31.85 per share at the market open, to N28.70 per share at the close of the market today, to print a loss of 9.89%.
This decline saw the market capitalization of the leading maker of beer and spirits fall from N69.75 billion to N62.86 billion at the close of trading activities today, putting the total market value loss at N6.89 billion.
The shares of Guinness at the close of the market today cleared at N28.70 per share, 9.89% lower than the closing price of N31.85 per share yesterday.
At the current price, Guinness shares are currently trading 20.27% lower than their 52-week high of N36.00 per share. However, the shares of the company have returned about 120.8% gains for investors who bought them at their 52-week low trading price of N13.00 per share last week.
During trading hours on the Exchange today, about 159,380 ordinary shares of Guinness Nigeria Plc worth about N4.57 million, were exchanged in 27 executed deals.
The shares of Nigerian Breweries Plc and Golden Guinea Breweries Plc closed flat at N50.1 per share and N0.81 per share respectively, while the shares of International Breweries Plc shed 0.88% to close low today at N5.65 per share.
What you should know
- At the close of trading activities today, the NSE All-Share Index and market capitalization appreciated by 0.29% to close higher at 39,128.34 index points and N20.477 trillion respectively.
- The NSE Consumer Goods Index, an investable benchmark designed to track the performance of the shares of consumer goods companies like Guinness Nigeria Plc, depreciated by -0.35% to close the day lower at 553.26 index points.
Guinness plunges amid Nigerian stocks gains
The All-Share Index increased by +0.29% to close at 39,128.34 from 39,015.58 index points.
The Nigerian Stock Exchange market posted gains at the end of the trading session today. The All-Share Index increased by +0.29% to close at 39,128.34 from 39,015.58 index points. CONOIL topped the gainers list.
- Nigerian Stock Exchange market value currently stands at NGN 20.48Tr. Its Year-to-Date (YTD) returns currently stands at – 84%.
- The market closed in profit as CONOIL led 21 Gainers and GUINNESS topped the chart of 22 Losers with a noticeable bullish movement by the NSE ASI.
- CONOIL up +9.97% to close at N18.75
- STUDPRESS up +9.88% to close at N1.78
- ETERNA up +9.48% to close at N6.35
- UPL up +9.40% to close at N1.28
- WAPCO up +6.83% to close at N21.90
- GUINNESS down -9.89% to close at N28.70
- PORTPAINT down -9.85% to close at N2.38
- ACADEMY down -8.26% to close at N0.37
- LEARNAFRCA down -8.26% to close at N1.00
- REGALINS down -7.41% to close at N0.25
The NSE ASI saw a bullish move supporting Tuesday gains and showing bullish dominance since the start of the week. However, the following stocks are on our watchlist: PZ, Guaranty, Access bank, STANBIC, HONYFLOUR, GUINNESS and Flourmills.
- Nairametrics advises cautious participation in the stock market in this era of growing uncertainties.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- VFD Group set to raise additional capital of N9.01 billion through rights issue and private placement.
- GT Bank records a 9% dip in profit to N45.55 billion in Q1 2021.
- Secure Electronic Technology Plc records a 121% surge in Profit after tax in Q1 2021.
- Lafarge Africa Plc notifies stakeholders of 62nd Annual General Meeting.
- GlaxoSmithKline (GSK) announces Annual General Meeting.