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STANBIC IBTC posts Profit After Tax of N45.2 billion in H1 2020

The Bank recorded 17.4% increase in Profit Before Tax from N44.65 billion to N52.41 billion.

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Stanbic IBTC Holdings Plc

Stanbic IBTC Holdings Plc has declared a Profit After Tax (PAT) of N45.2 billion in the first half of 2020 as against N36.2 billion posted same period in 2019.

It recorded 17.4% increase in Profit Before Tax from N44.65 billion to N52.41 billion while the Net Assets grew by 11.3% from N302.23 billion recorded as at December 2019 to N336.52 billion.

READ MORE: A Sterling performance? Not quite, but commendable

Gross Earnings: Gross earnings (N126.57 billion) increased by 7.8% when compared to N117.37 billion recorded in the corresponding period of 2019. The increase in its gross earnings is attributable to its improved performance in Non-Interest income which increased from N54.85 billion to approximately N69.80 billion indicating a 27.24% increase, while both its Income Before Impairment Charges and Income After Impairment Charges also appreciated by 14.0% and 6.57% Year-on-Year respectively.

READ ALSO: FCMB profit up 9.2% surges to N20 billion

Specta

The effect of the increase in Non-interest income and impairment charges helped to neutralize the effect of the decline recorded in its Net Interest Income which decreased from N39.31 billion to N37.54 billion Year-on-Year indicating a 4.4% decline. The year-on-year decline recorded in the Net Interest Income was due to lower returns recorded for Interest on Loans and advances to banks and Interest on investment.

READ ALSO: Zenith Bank’s Profit After Tax in H1,2020 rises by 16.8% to N103.8 billion

Basic Earnings Per Share: The Basic Earnings Per Share increased by 22.5% from 342 kobo to 419 kobo. The firm proposed payment of a dividend of 40 kobo per share. As of the closing of the gong on Thursday, the share price of Stanbic IBTC holdings still remained at N37.5 at the Nigerian Stock Exchange market.

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READ MORE: Banks to witness low earnings over Coronavirus- Report

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To read the complete audited financial statement, click HERE

Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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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.

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Cutix Plc, dividend

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

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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.

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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.

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Vitafoam Nigeria Plc, Vitafoam returns to a 5-year high

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

Specta

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

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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.

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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.

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Neimeth Pharmaceuticals

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.

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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.

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