Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have impacts on the firms themselves or shareholders.
Examples of corporate actions include the release of quarterly and full year results, payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.
Here is a rundown of corporate actions that took place last week, and those expected to take place this week.
N130 billion on the table
In perhaps the biggest news that broke on the Nigerian Stock Exchange last week, the board of Dangote Flour Mills Plc announced that it had received a buyout offer to the tune of N130 billion from Olam International. The offer is however subject to both regulatory and shareholders’ approvals. The board has since accepted the offer, and will tender it before shareholders.
The news led to a 45.3% surge in the company’s share price, and the stock topping the gainers chart for last week.
A new listing
Skyway Aviation Handling Company (SAHCO ) Plc listed its entire paid up share capital of 1.35 billion shares on the Nigerian Stock Exchange.
The shares were listed at N4.65 per share.
Dangote Cement released its Q1 2019 results after trading hours on Friday and there was a dip in both top and bottom lines. Gross profit was down 2.8% to N140 billion.
Profit after tax, is down 16.5%.
NASCON Allied Industries’ Q1 2019 results show flat revenue and a sharp decline in profit.
Revenue was flat at N6.8 billion for Q1 2019. Profit before tax declined by 33% to N1 billion. Profit after tax dropped 34.6% to N694 million in 2019.
Construction giant, Julius Berger’s, Q1 2019 results show that revenue was up, but an increase in cost of sales and administrative expenses led to a sharp drop in bottom-line.
Revenue was up 78.1% to N62.9 billion in 2019. Profit before tax however dropped by 45.4% to N1.2 billion. Profit after tax fell by 67.4% to N485 million.
Brewing giants, Guinness Nigeria Plc and Nigerian Breweries Plc, both released their 9M 2018/2019 and Q1 2019 results respectively. The performances of both firms were poor.
Guinness Nigeria had a decline in bottom line in 9M 2018/2019. Gross earnings fell minutely to N101 billion. Profit before tax fell 20.5% to N6.2 billion. Profit after tax also declined by 16% to N4.2 billion.
Nigerian Breweries had a marginal increase in revenue, but significant decline in profit before tax and profit after tax. Revenue was up by 3.2% to N91.3 billion in Q1 2019. Profit before tax however dropped by 25% to N11.4 billion. Profit after tax also fell by 22% to N8 billion.
A surprise from Cadbury
Cadbury Nigeria has carried over its impressive FY 2018 performance into 2019 going by its Q1 2019 results. While revenue rose marginally, profit before and after tax jumped significantly.
Revenue went up by 13% to N9.2 billion in Q1 2019. Profit before tax jumped 2201% to N723 million. Profit after tax also rose by the same margin to N506 million.
Vitfoam keeps going
Vitafoam seems poised to maintain the decent performance attained in its last financial year. H1 2018/2019 results show an increase in both revenue and profit. Revenue is up 20.5% to N12.9 billion. Profit before tax rose sharply by 136% to N1.1 billion. Profit after tax also increased by 150% to N774 million in 2019.
A quiet NEM
NEM Insurance released its full year 2018 results with little or no buzz in terms of trading volumes.
Gross premium written increased by 13% to N15 billion in FY 2018. Profit before tax dropped by 13% to N2.6 billion. Profit after tax declined by 25.9% to N2 billion.
The company declared a final dividend of N0.13, up by 30% from the N0.10 paid in the 2017 financial year.
Less oil at Okomu
Okomu Oil palm’s Q1 2019 numbers show a sharp decline in both topline and bottom line. Turnover fell by 42.4% to N4.2 billion in 2019. Profit before tax declined by 69.2% to N1.2 billion in 2019. Profit after tax also fell by 70.5% to N1 billion in 2019.
Mixed tales in banking
UBA had an increase in gross earnings and bottom line for Q1 2019. Gross earnings went up 16.3% to N40.6 billion in 2019. Profit before tax was up 13.5% to N30.1 billion. Profit after tax was up 20.6% to N28.6 billion.
FBN Holdings, had a marginal increase in profit for the first quarter ended March 2019. Profit before tax rose by 2.6% to N19.3 billion in Q1 2019. Profit after tax rose by 6.8% to N15.7 billion in Q1 2019.
Tier two lenders, Fidelity Bank Plc and Wema Bank Plc, had sharp rises in profit in their Q1 2019 numbers.
Fidelity Bank’s Q1 2019 saw increase in both top and bottom lines. Gross earnings was up 11.7% to N48.4 billion. Profit before tax rose by 34.6% to N6.6 billion. Profit after tax rose by 28.2% to N5.9 billon.
Wema Bank’s profit before tax was up by 50.7% to N1.3 billion. Profit after tax also rose by 49.7% to N1.1 billion.
Stanbic IBTC’s Q1 2019 gross earnings rose modestly, while profit before and after tax and PAT dipped sharply.
Gross earnings increased by 2.2%. Profit before tax dropped by 11.6% to N23.5 billion in 2019. Profit after tax declined by 16.9% to N19.1 billion in 2019.
A U TURN
Regency Alliance Insurance Plc’s board approved the firm’s Q1 2019 results, but decided to to leave the company’s corporate structure unchanged.
AGMs that held
UBA, Fidelity Bank, FCMB, Custodian Investment and Sterling Bank all held their Annual General Meetings last week.
Corporate Actions taking place next week
Seplat Petroleum will release its Q1 2019 financial results on the 30th of April.
Nestle Nigeria Plc will hold a board meeting to consider its Q1 2019 results on the 30th of April, 2019.
MRS Oil Plc will also be holding a board meeting on the 30th of April, 2019 to consider the company’s Q1 2019 results.
Capital Hotels Plc will be having its Annual General Meeting on Thursday the 2nd of May 2019, hence a place on this week’s watchlist
FBN Holdings Plc will be holdings its Annual General Meeting on the 3rd of May 2019.