Nestle Plc reported a dip in earnings per share as a spike in cost coloured stable revenues in the quarter ending June 2020.
Result Highlights – April – June
- Revenues dipped to N70.6 billion -0.3% YoY
- Gross profit margins 43% vs 48.8% YoY
- Pre-tax profits was N16.4 billion vs N17.4 billion QoQ
- Earnings per share N13.41 vs N16.9
- Nestle took on a new N5.8 billion loan during the quarter.
Bottom Line: Even a Food manufacturing giant like Nestle could not avoid the impact of COVID-19. Despite managing to keep revenues flat year on year, increase in cost of sales hit its margins. We suspect this could be a result of the devaluation and higher cost of locally sourced inputs.
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Flour Mills reports N9.9 billion profit in HY 2020/21
The increase in profit before tax was largely driven by the agro-allied segment.
Flour Mills Nigeria, announced its unaudited 2020/21 half-year financial results today, showing continued growth with a Profit after Tax of N9.9 billion for the six months ended 30th September 2020.
What you should know
- Flour Mills’ revenue was N355.1 billion, compared to N270,8 billion in H1 2019/20.
- The Group’s profit before tax was N14.6 billion, compared to N8.6 billion in H1 2019/20. The increase in profit before tax was largely driven by the agro-allied segment, which generated a profit of N6.3 billion compared to a loss the previous year.
- The agro-allied segment saw very strong improvement in the edible oils and fats, protein, and fertilizer businesses, following the investments over the last few years.
- The Group’s profit after tax was N9.9 billion, compared to N5.9 billion in H1 2019/20.
- FMN continued to show sustained growth in key segments driven by the closure of the Nigerian border since August 2019.
Despite prevailing economic headwinds, the Group continued to show sustained growth in key segments driven by the border closure since August 2019.
As the FMN key segment continues to capitalize on this development due to the strategic placement of the Group’s business in the industry.
This development led to a strong performance in edible oils and proteins supported by agro-inputs (fertilizer) and agro-distribution and aggregation structures.
In line with FMN’s growth strategy, the edible oils and fats value chain saw a significant year-on-year increase of 32% in volume, turning in a profit when compared to the loss in H1 2019/20.
However, volumes for the protein value chain also increased by 18% year-on-year, while the starch value chain was up by 31% year-on-year.
What they are saying
Commenting on the result, Paul Gbededo, the Group Managing Director /CEO, stated; “With this result, our business has once again shown resilience, by following the path of sustainable growth despite the prevailing challenges in both the local and global economy.”
He further assured that “in line with our vision to continue to grow value for our investors, Management will for the remaining part of the financial year continue to concentrate on improving operational effectiveness through accelerated strategies for Group-wide cost optimization, which will ensure sustainability in the current market climate, while we continue to invest in growing the business further.”
SET Plc recorded N14.4m post-tax loss in Q3 2020
Secure Electronic Technology Plc (SET Plc) recorded a post-tax loss of N14.4 million in Q3 2020.
Secure Electronic Technology Plc (SET Plc) recorded a post-tax loss of N14.4M in Q3 2020, triggered by a high dealer’s commission.
A cursory analysis of the Q3 2020 results of Secure Electronic Technology Plc (SET Plc) indicates that the Q3 2020 post-tax loss reduced by 33.7% from N21.7M in the same quarter last year.
- Revenue increased by 1.0%
- Prizes/winnings increased by 0.52%
- Dealers commission increased by 3.42%
- Net income decreased by 14.71%
- Administrative expenses decreased by 21.21%
- Operating loss decreased by 34.62%
- Financial charges increased by 68.23%
What you should know
- A cursory analysis of the latest results of the company reveals that revenues generated from lottery sales and gaming products increased by 1% in Q3 2020 relative to Q3 2019, despite COVID-19 pandemic disruptions that have affected revenues of most businesses worldwide.
- YoY, revenue decreased by 2.15% from N3.18B in 2019 (9-months) relative to N3.11B in 2020 (9-months) – indicating that COVID-19 might have impacted the activities of the company, when considered on a yearly basis.
- While the company was able to increase revenues by 1%, reduce its operating loss by 34.62%, and reduce its administrative expenses by 21.21%; high dealers commission and administrative expenses as well as finance charges which increased by 68.23% contributed to the post-tax loss recorded.
- Dealers commission and administrative expenses constitute a drag on the company’s profitability. Dealer’s commission was 36.12% of revenues in the period under consideration while prizes/winnings were 60.35%. Administrative expenses was 137.16% of net income in the quarter under consideration.
- The post-tax loss is an indication that there was no distributable profit. Thus, the Earnings Per Share (EPS) of the company would be a deficit; so that Q3 2020 EPS was –0.26 kobo.
The shares currently trade at N0.20 per unit. The highest price for a unit of share in 52 weeks was N0.20 and the lowest N0.20, indicating that the share price of the company has been stable. A total of 20,212 units was sold in the last seven days trades. Shares outstanding is 5.63 billion units and its market capitalization as at close of business Friday 16th October 2020 was N1.13 billion.
Interlinked Technologies Plc operates in the same sub-sector as SET Plc – Speciality. Its share price is N2.91. The highest price for a unit of share in 52 weeks was N2.91 and the lowest N2.91 – indicating that the share price of the company has been stable. A total of 141,020 units was sold in the last seven days trades. Shares outstanding is 236.7 million units and its market capitalization as at close of business Friday 16th October 2020 was N688.80 million.
Secure Electronic Technology Plc (SET Plc), formerly known as National Sports Lottery was incorporated in 2000 with an exclusive 30-year license granted by the FG to operate the National Lottery in Nigeria.
SET Plc started out as a gaming/lottery company. While online gaming remains a major part of its operations. Aside from lottery and gaming, the company now explores other business areas within the ambit of technology and data management.
Today, the company is involved in the vending of airtime, provision of card payment solutions, trivia promo syndication, provision of central database and information processing services, as well as treasury/asset management services.
Presco Plc projects N24.53 billion turnover in Q4 2020
Presco’s forecast is coming amid the negative economic impacts of the coronavirus pandemic.
Presco Plc has projected an 82.03% rise in Profit after Tax to N6.99 billion in Q4 2020, up from N3.84 billion in Q4 2019. Also, its projected turnover of N24.53 billion indicates a 24.39% increase when compared to the N19.72 billion made in Q4 2019.
The Earnings Forecast sent to the Nigerian Stock Exchange (NSE) today, estimated the Gross Profit to be N14.18 billion and the Profit before Tax to be N9.13 billion.
This forecast is coming amid the negative economic impacts of the coronavirus pandemic. It is generally expected that the firm should have downgraded their earnings and profitability forecasts, but renewed optimism based on the reopening of the economy and growing demands for consumer goods have been factors that influenced the projections.
Presco Plc had earlier held its Annual General Meeting, with the unaudited accounts for the tQ3 2020 ended September 30, 2020, were deliberated upon among other resolutions.
What you should know
Presco Plc is a fully-integrated agro-industrial establishment with oil palm plantations, palm oil mill, palm kernel crushing plant, and vegetable oil refining plant. They produce specialty oil and fats.