Companies
FCMB deepens empowerment of SMEs in Ogun State, as First Lady commends bank
FCMB has restated its commitment to the productivity and profitability of SMEs through funding, capacity building, advisory and other forms of support.
First City Monument Bank (FCMB) has restated its commitment to the productivity and profitability of Small and Medium Scale Enterprises (SMEs) through funding, capacity building, advisory and other forms of support that would boost their overall contributions to economic development.
FCMB, which is rated as the number one Bank for SMEs in Nigeria in the latest Banking Industry Customer Experience Survey report by KPMG, gave the assurance at a free and comprehensive capacity building and empowerment programme it organised for women entrepreneurs in Ogun State, in partnership with the Office of the First Lady of the State, Mrs. Bamidele Abiodun, on February 5, 2020.
The programme, themed, “Supporting Women Businesses to Scale Up in 2020’’ and under the auspices of FCMB’s SME Advisory and SheVentures initiative for women entrepreneurs, was attended by hundreds of existing and start-up entrepreneurs across Ogun State, seasoned professionals from the Bank of Industry (BoI), National Agency for Food and Drug Administration and Control (NAFDAC) and Federal Inland Revenue Service (FIRS), among others. It focused on business and skills development, marketing, finance, taxation, cost and revenue management, business plan writing, in addition to other topical issues.
Speaking at the opening session, the Executive Director, Business Development of FCMB, Mrs. Bukola Smith, said the Bank recognises the increasing role and impact of SMEs, especially women-owned ones.
According to her, “It is a fact that in Nigeria, several women have risen through various challenges to become top entrepreneurs. Through resilience and innovation, they have taken the front seat in driving growth in this sector and by extension the larger economy. However, we believe that women can do better in the SMEs ecosystem if provided with the requisite skills and other resources.’’
Mrs. Smith added that, “As the number one Bank for SMEs in Nigeria, we have built a strong base in this segment by consistently offering various cutting-edge solutions under our key pillars of support, which are, access to capital, capacity building, advisory services, networking opportunity and technology. We are excited that these interventions have tremendously impacted individuals, businesses and the nation’s economy, especially through job and wealth creation.”
She expressed gratitude to the Ogun State Government and the Office of the First Lady for providing the enabling environment for businesses to thrive while urging the participants to take advantage of the opportunities provided by the training.
In her keynote address, the First Lady of Ogun State, Mrs. Abiodun, said, “As a firm believer in initiatives that focus on boosting the economic capacity of women and offering both financial and non-financial support to women-owned enterprises, I consider this programme as a step in the right direction. I was excited when I was informed about the FCMB SheVentures initiative. Financial empowerment remains one of the most important means of eradicating poverty among women in the developing world, as seen in Bangladesh, Kenya and Nigeria.’’
She added that, “We have had numerous empowerment programmes in Nigeria. Many were driven by capacity building programmes followed by loans and grants to women to start-up businesses. However, studies have shown that these initiatives, while having some value failed to reach their full potential because of one missing ingredient, which is financial education as a vehicle to actualise the full value of any business venture. And here today, FCMB through its efforts to ensure that women-owned businesses in Ogun state and Nigeria as a whole are not left out in the development of the nation’s economy, has delivered this very much sought after Financial Education to us on a first-class level amongst an array of financial solutions.’’
FCMB provides numerous offerings to SMEs in Nigeria, including FCMB SME Advisory Services through market intelligence, technical assistance support and access to intervention funds in partnership with Development Financial Institutions. There is also the FCMB SheVentures initiative, which provides enhanced support to women-owned SMEs through access to finance, training and mentoring with the unique benefit of zero-interest-rate for an initial period of three months. So far, over 2000 women entrepreneurs have benefitted from this.
The Bank has also automated and digitized its lending process for SMEs through the FCMB Quickloans platform. Since the launch of the platform in July 2019, over N10billion unsecured loans have been disbursed to SME customers within three to twenty-four hours of each application.
For more information about FCMB, please visit www.fcmb.com.
Companies
Fidelity Bank to raise N50 billion in bonds in Q4 to refinance existing debts
The new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.
One of Nigeria’s second-tier commercial banks, Fidelity Bank Plc, has concluded plans to issue up to N50 billion ($131.3 million) in local bonds by the fourth quarter of 2020, in order to refinance existing debts as the yields drop.
The disclosure was made by the Chief Operations and Information Officer, Gbolahan Joshua, during an analyst call on Tuesday, September 8, 2020.
The crash of crude oil price globally, which was triggered by the novel coronavirus pandemic, has led to a decline in bond yields on the local debt market. This has made foreign investors to dump their local assets, leaving excess liquidity in the money market. This has also put a lot of pressure on the foreign exchange market as they look for dollars to repatriate their funds.
READ: Guinness Nigeria finding it hard to refinance its loans due to dollar scarcity
The Fidelity Bank top executive disclosed that the new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.
The global economic situation has seen yields in the debt market drop from as high as 18% about 3 years ago to less than 5% for the one-year treasury bill.
READ: GTBank, Zenith Bank, UBA record losses, investors down by N12.2 billion
Fidelity Bank had revealed that it expected to see a 15% drop in profit this year when compared to 2019 result due to the coronavirus pandemic. Its profit after tax increased by 21.9% to N12 billion for the half-year 2020.
The second-tier bank also disclosed that its income declined in the second quarter due to a downward review of lending rates on loans as a result of the economic downturn.
Companies
Heineken buys more units of Nigerian Breweries Plc
The Dutch firm has invested N276 million in NB since August, to increase its stake in the Brewer by 0.10%.
The major shareholder of the largest brewer in Nigeria, Heineken Brouwerijen B.V, has increased its stake in Nigerian Breweries, with the purchase of 233,110 additional units of Nigerian Breweries shares. This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which was seen by Nairametrics.
According to the notification, which was signed by the Company’s Secretary, Uaboi G. Agbebaku, the purchase was made on the bourse over two transactions on the 2nd and 3rd of September.
This disclosure is a regulatory requirement that must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.
READ: GTBank revenue for H1, 2020 rises to N225.14 billion
The analysis of these transactions indicates that the purchase consideration for the 233,110 additional units of Nigeria Breweries shares at an average price of N39.94 is put at N9.3 million.
This purchase and previous purchases further cement Heineken Brouwerijen B.V’s status as a major shareholder; the company has accumulated a total of 7,720,236 since 30th June.
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As of June 30th, when Nigerian Breweries released its Half-year financial results and reviewed its shareholding pattern, the company had exactly 7,996,902,051 outstanding shares, with Heineken Brouwerijen B.V being the majority shareholder with 3,019,363,804 units, which amount to 37.76% of the total shares of the company outstanding.
Hence, with the current purchase of 233,110 additional units, and previous purchases in August and September 1, which amount to 7,487,126 units, Heineken’s ownership percentage of Nigeria Breweries is now put at 37.85%.
Insider transactions, both sales and purchases, are often an indication of how shareholders perceive a company’s valuation. It could also mean a possible capital raise or that the majority shareholders are strengthening their existing holdings.
READ: Heineken scoops more Nigerian Breweries shares in insider disclosure
In like manners, the purchase of the shares of Nigerian Breweries by Heineken and other majority shareholder has mopped up stray volumes on the bourse, and pushed the stock price higher by 29% or N9, from N31 it closed at on the 3rd of August to its current value of N40 with 38.2x earnings.
About the company
Nigerian breweries is the largest brewing company in Nigeria. It engages in the brewing and marketing of lager beer, stout and non-alcoholic malt drinks, and the bottling of the Schweppes range of soft drinks and Crush Orange. Its brands include Star, Gulder, Legend, Heineken, Maltina, Amstel Malta, Fayrouz, Climax, Goldberg, Malta Gold, and Life. These products are mainly sold in Nigeria and other neighbouring countries.
READ: Flour Mills and its diverse challenges
Key takes on NB’s financials
Nigerian Breweries was affected by the disruption in the global and domestic demand and supply chain, as profit after tax of the largest brewer dropped by as much as 58%, at the back of the adverse impact of the sharp contraction in economic activities.
The knock-on effect of the COVID-19 lockdown, which affected the trade segment of the business, affected the company sales and this triggered the 11% drop in revenue in the first half of the year.
Companies
Nestle’s parent company increases stakes in Nestle Nigeria in August
The purchase consideration for the 748,047 additional shares at an average price of N1,174.74 is put at N878.8 million.
Nestle S.A, Switzerland, the parent company of Nestle Nigeria Plc and the majority shareholder of the company, has increased its stake in the Nigerian subsidiary, as it purchased about 748,047 additional shares in August.
This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which is seen by Nairametrics.
According to the document, which was signed by the Company’s Secretary, Bode Ayeku, the purchase was made on the bourse over two transactions on 20th and 26th of August.
This disclosure is a regulatory requirement which must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.
The analysis of this development shows that the purchase consideration for the 748,047 additional shares at an average price of N1,174.74 is put at N878.8 million.
Importantly, this purchase increases the ownership percentage of Nestle S.A, this adds significantly to the multinational’s investment in the company as the parent company now owns 66.27% of Nestle Nigeria Plc.
The 66.27% ownership share of Nestle S.A. total amounts to 525, 307, 504 ordinary shares worth N617 billion out of the 792, 656, 252 shares outstanding.
Meanwhile, insiders’ transactions both sales and purchases are often an indication of how shareholders perceive the company’s valuation. It could also mean a possible capital raise or the majority shareholders strengthening their existing holdings.
About the company
Nestlé Nigeria PLC is one of the largest food and beverage companies in Africa. Nestlé Nigeria Plc engages in the manufacturing, marketing and distribution of food products including purified water. It also exports some of its products to other countries within Africa.
It has three product segments: Food, Beverages and seasoning. The Food segment engages in the production and sale of Cerelac, Nutrend, Nan, Lactogen and Golden Morn. The Beverages segment engages in the production and sale of Milo, Chocomilo, Nido, Nescafe and Nestlé Pure Life. While the seasoning segment engages in the sale of Maggi cubes.
Key takes on Nestle financials
Nairametrics had earlier published after perusing through the company’s half-year unaudited financial report that the increase in the cost of sales, Administrative expenses, low finance income coupled with high costs coloured the bottom line of the company as earnings per share dipped from N33.11 to N27.53.
This shows the knock-on-effect of the pandemic on a giant like Nestle, despite grappling hard to keep revenues flat year on year, the increase in key costs still ebbed earnings.
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