Unilever Nigeria Plc a leading consumer goods company in Nigeria declares in its unaudited annual financial report that it made a loss amounting to N1.59 billion in the year 2020.
This is according to the information and figures disclosed in the Company’s unaudited financial statement published by Unilever on the website of the Nigerian Stock Exchange.
The report revealed that the loss which Unilever made in 2020, was 62.3% lower than the loss it made in the preceding year 2019, as the company’s loss after tax declined from N4.22 billion in 2019 to N1.59 billion in 2020.
- Revenue increased to N61.57 billion, up by 1.34% Y-o-Y.
- Cost of sales decreased to N47.79 billion, down by 11.63% Y-o-Y.
- Gross profit increased to N13.78 billion, up by 106.52% Y-o-Y.
- Selling and distribution expenses decreased to N2.82 billion, down by 10.53% Y-o-Y.
- Marketing and administrative expenses decreased to N12.99 billion, down by 1.69% Y-o-Y.
- Impairment loss on trade receivables increased to N1.08 billion, up by 49.73% Y-o-Y.
- Other income increased to 66.99 million, up by 2.44% Y-o-Y.
- Operating loss decreased to N3.05 billion, down by 70.54% Y-o-Y.
- Finance income decreased to N1.47 billion, down by 48.39% Y-o-Y.
- Finance costs decreased to N223.29 million, down by 72.91% Y-o-Y.
- Loss for the period decreased to N1.59 billion, down by 62.32% Y-o-Y.
Dangote Sugar yearly revenue surge by 33%, announces a dividend of N1.50
Dangote Sugar Refinery Plc. recently declared a 33.0% Year to year growth in earnings to N29.8 billion for the financial year of 2020
Dangote Sugar Refinery Plc via the Nigerian Stock exchange recently declared a 33.0% Year to year growth in earnings to N29.8 billion for the financial year of 2020
The company also announced a dividend of N1.50 (vs N1.10 total dividend in 2019).
Dangote Sugar’s revenue expanded by 33.0% YoY amid strong volume growth in its 50 kg sugar offering (c.96.0% of total sales).
The company’s impressive outing amazed a significant number of stock pundits despite a surge in tax charges which partially offset some of the positive passthrough from border closures on earnings.
Gross margin expanded by 1.31ppts Year to Year to 25.08%, which points to the effects of recent cost-containment measures and the slump in global raw sugar prices in 2020 amid the COVID-19 pandemic.
The raw sugar price dropped to as low $0.09/lb in 2020 and traded c.$0.13/lb on average during 2020 (-4.38% YoY)
What you should know: Dangote Sugar Refinery Plc (the Company) was incorporated as a Public Limited Liability Company on 4 January 2005, commenced operation on 1 January 2006, and became quoted on the Nigerian Stock Exchange in March 2007.
Its current shareholding is 68% by Dangote Industries Limited and 32% by the Nigerian public.
The principal activity of the Group is the refining of raw sugar into edible sugar and the selling of refined sugar. The Group’s products are sold through distributors across the country.
That being said, in spite of such impressive results from the N217 billion valued company experienced a surge in operational cost partly due to persistent FX scarcity.
Dangote Sugar reported a four-fold increase in finance cost, which can be largely attributed to the foreign exchange loss in its ordinary business operations, driven by persistent FX shortages and naira repricing at the exchange rate windows.
Zenith Bank spends N20 billion on IT in 2020, up 122%
Zenith Bank spent a whopping N20 billion on IT in 2020 more than double its 2019 spend of N9 billion.
Nigeria’s largest bank by assets, Zenith Bank Plc, spent a whopping N20 billion on Information Technology in 2020, more than double its 2019 spend of N9 billion.
A cursory view of the bank’s expense line for 2020 reveals that it spent N148.1 billion on other expenses compared with N129. 4 billion in the same period of the previous year. Information technology was the major driver of the bank’s expense line, making up about 15.5% of total operating expenses.
Why this matters: Most banks are expected to record higher spend on information technology in 2020 due to forced work-from-home policies triggered by Covid-19. Apps such as Zoom, and Microsoft Teams went mainstream during the pandemic as most businesses increasingly depended on them to function.
- While remote working may have been a major contributor, the bank likely splurged heavily on software applications, cloud computing, SaaS, and investing in technology to drive its FinTech goals.
- Apart from Information Technology, the bank also spent more on AMCON levy during the year, incurring a cost of N30.9 billion.
- A notable reduction in year-on-year expenditure was its spending on Hotels and Travels. The bank spent N1.8 billion in Travel and Hotels.
- Zenith Bank reported a record N230 billion in profit after tax for the year ended December 2020. The bank is now the largest bank by Total Assets, with over N8.4 trillion.
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