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Company Results
MTN Nigeria revenues rises to over N100 billion monthly in 2020
MTN Nigeria reported a half-year revenues of N638 billion in 2020 compared to N566.9 billion reported same period last year. The 12.5% pop was driven by growth in data revenues in the first and second quarters of the year.
The company reported a 49% growth in data revenues in the second quarter of 2020 as its Nigerian customers guzzled more data in the ensuing Covid-19 economic shutdown.
The revenues reported in the first half of 2020 now translate to about N100 billion monthly in revenues, a company and Nigerian Stock Market record, according to Nairametrics Research. Revenues averaged N97 billion monthly in 2019 and N86.5 billion in 2018.
READ ALSO: Katsina State records fastest growth in mobile internet subscribers in Nigeria
Key highlights
- In the second quarter of 2020 total revenues rose 8.5% to N308.9 billion driven largely by higher data revenues.
- Data revenues jumped from N56.7 billion to N79.9 billion in the quarter under review confirming the growing reliance Nigerians have on data for communication.
- Call revenues, the company’s mainstay suffered a 1% drop to N176.2 billion suggesting a drop in its average revenue per user. Call revenues make up about 68% of its service revenues. Mobile subscriber growth was just 3.8% in the quarter.
- Revenues from its Fintech division fell 7.7% to N10.2 billion in the quarter. It however rose by 29.6% in the first half of 2020 compared to the year before.
- MTN has aggressively pushed its Fintech business leveraging on its economies of scale to gobble market share.
- Pre-tax Profits for the quarter was N62.2 billion down 13.4% YoY.
- Earnings per share N2.11/N2.4 15.6% up QoQ. The earnings per share dip was due to higher operating expenses
READ ALSO: Netflix adds 10.1 million paid users in Q2 2020, yet stock plunges more than 9%
Company’s explanation
- The company explains the growth in data revenue was driven by growth in data usage and traffic. The company added 2 million new data subscribers in the quarter compared to 1.8 million in the first quarter.
- The company also explained that data traffic rose 27.2% QoQ (141.2% YoY) while usage measured in megabyte per user rose 23.3% QoQ (76% YoY).
- MTN also claims it brought in 4 million new smartphones in the first half of 2020.
- In its Fintech division, the company explained its growth was driven by its airtime lending service and expansion in its agent network.
- Its total number of registered agents is now 220,000 while total transaction volume has risen to 14.6 million driven by its 2.2 million-plus subscribers.
- MTN also complained that port congestion and scarcity of foreign exchange rate affected its capital expenditure plans, especially in the first half of the year.
- Capital expenditure for the quarter was N47.5 billion compared to N40 billion same period in 2020. However, on a half-year basis, capital expenditure is down 21% to N76 billion.
Explore data and research from Nairametrics on Nairalytics
Companies
Cutix Plc forecasts N148 million profit in Q4 2021
Cutix Plc has projected that its revenue will double and profit will increase by 9% to N148 million.
Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by 9% to N148 million.
These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.
READ: Vitafoam shares gain 9.6%, as company reports N4.11 billion as profit in 2020
Key highlights of the earnings forecast for Q4 ended April 30, 2021
- Revenue to increase to N1.66billion, 100% Q-o-Q.
- Cost of Sales to increase to N1.16 billion, 70% Q-o-Q.
- Distribution, Admin & Other expenses to increase to N232.89 million, 14%% Q-o-Q.
- Other Income to remain unchanged at N2.50 million,
- Finance Charges to increase slightly to N47.38 million, 3% Q-o-Q.
- Operating income to increase to N227.83 million, 14% Q-o-Q.
- Taxation is projected at N79.74 million.
- While Profit attributable shareholders is projected at N148.10 million.
READ: Royal Exchange Plc forecasts N500.83 million PAT in Q1 2021
Bottom line
The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.
READ: Okomu Oil Plc records 27.01% decline in 2020 Q3 revenues
However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.
Company Results
Vitafoam shares gain 9.6%, as company reports N4.11 billion as profit in 2020
Vitafoam Nigeria Plc profit revealed 72.10% increase when compared with the N2.39 billion reported in the corresponding period of 2019.
Vitafoam Nigeria Plc has reported in its audited financial statement for 2020 that it made a profit of N4.11billion for the year ended 30 September 2020.
This represents a 72.10% increase in profit when compared with the N2.39billion profit reported in the corresponding period of 2019.
READ: Vitafoam returns to a 5-year high
Key highlights
- Revenue increased to N23.44 billion in 2020, 5.21% Y-O-Y.
- Cost of Sales decreased to N12.43 billion in 2020, 8.06% Y-O-Y.
- Gross Profit increased to N11.01 billion in 2020, 25.68% Y-O-Y.
- Other income increased to N638.97 million in 2020, 63.91% Y-O-Y.
- Distribution costs increased to N1.05 billion in 2020, 8.13% Y-O-Y.
- Administrative expenses increased to N4.13 billion in 2020, 10.57% Y-O-Y.
- Operating profit increased to N6.47 billion in 2020, 45.58% Y-O-Y.
- Finance income increased to N106.51 million in 2020, 5.39% Y-O-Y.
- Finance Costs decreased to N930.17 million in 2020, 11.39% Y-O-Y.
- Profit from continuing operations increased to N3.92 billion in 2020, 58.88% Y-O-Y.
- Profit from discontinued operations increased to N191.63 million in 2020, 345.68% Y-O-Y.
- Profit for the year increased to N4.11 billion in 2020, 72.10% Y-O-Y.
READ: Vitafoam’s 2020 oncourse to make light–work of 2019
READ: Sterling Bank Plc forecasts N2.09 billion PAT in Q1 2021
What you should know
- Shares of the company have gained 9.6% within the first one hour of trading, largely at the backdrop of news of the company’s impressive performance as the current valuation of the company in the light of its results suggests that the shares of the Company are undervalued at the current price.
- Checks by Nairametrics as of 11:10 am today confirmed that the company is on a full bid, as 4,930,245 bids from 23 investors have been placed at the highest price for the day, without a single offer at a price lower than N8.55.
READ: Ecobank Transnational Inc. records 11% increase in interest income for Q3 2020
Bottom line
The profitability of the company was beefed up in 2020 on the back of the decrease in the cost of raw materials coupled with the increase in sales from the core segment of the company which led to the 5.21% increase in revenue in 2020.
READ: Bitcoin miners are super-rich, earn $1,000,000 per hour
However, it is important to note that the impressive performance of the Vitafoam Group was also strengthened by the increase in other profit owing to improvement in sales, this helped the company to also grow its revenue from services provided to customers’ after-sales.
Company Results
Neimeth posts profit of N212.48 million for year-ended September 2020
Neimeth profit declined by 3.48%, as profitability was pressured by rising costs and expenses in 2020.
Neimeth Pharmaceuticals Plc has reported in its audited financial statement for 2020 that it made a profit of N212.48 million for the year ended 30th September 2020.
This represents a 3.48% decline in profit when compared with the N220.15 million PAT reported in the corresponding period of 2019.
READ: PZ incurs N1 billion in exchange rate loss
Key highlights
- Revenue increased to N2.84 billion in 2020, 19.73% Y-O-Y.
- Cost of Sales increased to N1.33 billion in 2020, 13.11% Y-O-Y.
- Gross Profit increased to N1.51 billion in 2020, 26.23% Y-O-Y.
- Other income increased to N29.29 million in 2020, 1049.33% Y-O-Y.
- Marketing and distribution expenses increased to N505.11 million in 2020, 33.90% Y-O-Y.
- Administrative expenses increased to N452.28 million in 2020, 20.54% Y-O-Y.
- Exchange loss increased to N188.05 million in 2020, 479.25% Y-O-Y.
- Operating profit decreased to N393.26 million in 2020, -4.87% Y-O-Y.
- Finance costs decreased to N95.87 million in 2020, -12.00% Y-O-Y.
- Profit after tax decreased to N212.48 in 2020, -3.48% Y-O-Y.
READ: Bitcoin miners are super-rich, earn $1,000,000 per hour
Bottom line
The report revealed that despite the impressive performance of the core operating segment of the company, and the increase in the revenue generated from the Animal Health segment, the profit of Neimeth Pharmaceuticals was pressured by rising costs in 2020 and this led to 3.48% decline in profit year-on-year.
READ: Pharma Deko Plc records 1.16% increase in 2020 9M revenues
Neimeth Pharmaceuticals suffered from substantial cost and expenses increase in 2020, as the increase in production cost, marketing and distribution expenses (driven by increased payment to employees in this department), administrative expenses (driven by expenses paid for conference and meetings, bank charges and commission, communication and subscription, energy cost, insurance and medical expenses) and increase in foreign exchange loss driven by naira devaluation, pressured profitability in 2020.
