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Company Results

Samsung Electronics profits increased by 58% in the third quarter

The company said its profits increased by 58% from July – September.

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Samsung moves smartphone production to Vietnam due to coronavirus, Samsung Electronics profits increased by 58% in the third quarter

Samsung Electronics a multinational conglomerate disclosed that it had an increased profit of 58% from July – September compared to what it had recorded the previous year.

The company made 12.3 trillion Korean Won in the Quarter higher than 7.78 trillion made the previous year according to the company’s earnings guidance.

Samsung seems to have gained a lot from the U.S. sanctions on Huawei and the delayed announcement of Intel’s next-generation chips. The sanctions on Huawei restrict options to acquire chips for its smartphones and critical semiconductor parts.

The company can dominate additional market shares if Huawei goes out of memory chips. Mark Newman, senior analyst at Bernstein stated because both companies run on Google’s Android operating system, users could opt for another Android-based brand. “So I think smartphones, telecom equipment and a bit of semiconductor are the main reasons for the beat,” he said.

(READ MORE: Wealth of world’s billionaires hits $10.2 trillion)

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Another factor that could have contributed to this is the high demand for smartphones. The flagship smartphones of the company are selling well. Samsung Consolidated sales were approximately 66 trillion won for the quarter, up about 62 trillion won last year.

“I think a large part of it seems to be smartphone units were up a lot. We did have a chance to talk to the company briefly this morning and seems like the smartphone units have been very, very strong in Q3,” Newman stated.

On Thursday its shares sold low at 0.33% following South Korea’s benchmark index of 0.16%. Between April – June it had about 23% increase in profit.

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Consumer electronics and appliances are other factors that could have contributed to Samsung’s earnings. SK Kim, executive director at Daiwa Securities explained on CNBC’s “Squawk Box Asia” that the upgrade in the cost structure, transfers to online marketing, considering the coronavirus pandemic and high demand, all helped in strengthening the company’s earnings.

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Company Results

CAP Plc: Increase in investment income, others boost revenues

CAP Plc recorded a boost in its two revenue-generating units, as total revenues grew.

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CAP Plc is running at a risk of increased bad debts

CAP Plc reported revenues of N5.99 billion in 2020 – 3.63% increase compared to N5.78 billion in the corresponding period of 2019.

What you should know

The key highlights of its financial year 2020.

  • Revenues increased by 3.63% from N5.77 billion to N5.99 billion YoY.
  • Revenues from paint products increased to N6.05 billion, +3.69% YoY.
  • Revenues from services increased to N33.90 million, +44.11% YoY.
  • Cost of sales increased to N3.30 billion, +8.86% YoY.
  • Gross profits decreased to N2.69 billion, -2.06 YoY.
  • Operating profits decreased to N1.17 billion, -20.94% YoY.
  • Pre-tax profits decreased to N1.36 billion, -24.50% YoY.
  • Post-tax profits decreased to N927.50 million, -24.50% YoY.
  • Earnings Per Share decreased to 133 kobo, -24% YoY.
  • Total assets increased to N7.82 billion, +15.64% YoY.
  • Total liabilities increased to N4.37 billion, +3.07% YoY.
  • Total equity increased to N3.45 billion, +36.78% YoY.

(READ MORE: Nigeria’s inflation rate hits 13.71% as food prices soar)

Bottom Line

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CAP Plc recorded a boost in total revenue from an increase in its two revenue-generating units.

Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19 – CAP Plc was able to increase its total revenues; however, pre-tax profits decreased.

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Company Results

Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

The company recorded impressive results in some key financial metrics such as gross revenue and profit after tax.

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Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

Custodian Investment Plc has declared a Profit After Tax (PAT) of N1.5 billion in the third quarter of 2020, as against N1.37 billion posted the same period in 2019.

This is according to the consolidated financial report of the firm for Q3 2020.

READ: Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19

READ: PZ Cussons and its sticky pattern of losses

What you should know

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Custodian Investment Plc also recorded impressive results in some key financial metrics such as;

  • Gross Revenue grew by 42% from N15.85 billion to N22.52 billion.
  • Interest income advanced by 11.3% Year-on-Year.
  • Investment income gained 25.4% from N5.61 billion to N7.03 billion.
  • Earnings per share appreciated by 50% from N24 to N36 for the period under view.
  • Other investments and operating income grew by approximately N6.40 billion.
  • Total assets also grew by 27% from N118.01 billion to N149.94 billion for the period under view.
  • Profit before tax marginally grew by 2.8% from N1.69 billion to N1.73 billion.

READ: Presco Plc projects N24.53 billion turnover in Q4 2020

READ: This FMCG giant has hit a one year low

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What this means

  • The growth in revenue and profitability is attributable to an increase in financial and reinsurance assets which appreciated by 35.62% and 32.5% (Y-O-Y) respectively.
  • An increase in investment and interest incomes were also very important in driving revenue.
  • On the contrary, despite recording increased gross revenue, the net profit margin decreased over time, from 23.91% recorded as of Q3 2019 to 5.8% in Q3 2020. Thus, indicating a probability of weak cost control mechanism or that variable values are not well controlled.
  • The Net profit margin indicates that the company earned N0.057K in profit for every N1 it received in revenue as of Q3, 2020. This is lower compared to N0.24k for every N1 it earned in revenue in Q3, 2019.
  • This is evident in the higher operating expenses recorded as of Q3 2020 which is up by 97.4% when compared with the figures obtained in the corresponding period last year (Q3 2019).

READ: Football: Manchester United net debt rises by 133% to £474.1million

READ: Where to invest $10,000 right now

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Company Results

Trans-Nationwide Express Plc suffers N79 million loss in Q3 2020

Trans-Nationwide Express Plc has recorded a loss that amounts to the tune of N79 million in Q3, 2020.

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Trans-Nationwide Express Plc, Trans-Nationwide Express Plc appoints new Managing Director 

Trans-Nationwide Express Plc, a logistics and courier service company in Lagos, Nigeria, suffered N79 million loss in the third quarter of 2020.

This disclosure was based on the Q3 2020 financials sent to the Nigerian Stock Exchange on Wednesday.

READ: NIPOST’s new charges could have ruined the e-commerce/logistics industry

Breakdown

  • Revenue declined by 7.5% Year-on-Year, from N548.3 million as of the corresponding period last year to N507.17 million this year.
  • The dip was largely due to a decline in revenue from courier services, which contributed about 54.1% of the total revenue as of Q3, 2020.
  • The revenue from courier services declined from N326.44 million to N274.40 million for the period under view.
  • On the contrary, other revenue churning segments like Freight income, logistics income, internal mailing income, and warehouse all recorded a positive outlook, as they all grew viz-a-viz last year’s figures.
  • Gross profit declined by 7.1% from N321.23 million to N298.40 million in the period under view.
  • Administrative expenses increased by 17.5% from N321.0 million to N377.1 million within the period under view.
  • Cash received from customers recorded a dip from N542.28 million to N523.07 million, indicating a slip of about 3.5%.

READ: BRT owners, Primero says they lost N100 million to #ENDSARS violence

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What this means

The pandemic affected several businesses and sectors, the transportation and logistics sectors were not exempted. The loss might have been largely due to the period of economic inactivity, due to embargo on inter-state and international travels.

The high cost of maintenance, coupled with little or no revenue in those periods also played a major part.

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READ: PZ incurs N1 billion in exchange rate loss 

READ: Lafarge Africa Plc: Increase in cement sales boosts revenues

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