Key highlights
- The Nairametrics Corporate News Roundup is a summary of major corporate announcements that dominated the headlines during the week ending April 8, 2023.
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Hello there. Happy Easter to you and welcome to Nairametrics Corporate News Roundup.
Last week, many companies listed on the Nigerian Exchange released their earnings reports, both for FY 2022 and Q1 2023. In the same vein, some companies declared dividends, announced the appointment of executives, and other corporate actions. Let’s now recap the top news that dominated the headlines.
Flour Mills’ commercial paper
Flour Mills of Nigeria Plc quoted its N13.33 billion Series 1 and N51.64 billion Series 2 Commercial Papers under its N200.00 billion CP Issuance Programme on the FMDQ Securities Exchange Limited’s platform. The company said this would enable it to harness alternative funding sources to meet some of its working capital needs.
Nairametrics reported that FBNQuest Merchant Bank Limited played a lead role in the registration of the Flour Mills N200.00 billion CP Programme and was pleased to be a part of the process in helping Flour Mills tap into debt markets to access funding to meet its working and other capital requirements.
Access Holdings’ strategic investment
Access Holdings Plc announced that it has completed a $300 million capital investment in its subsidiary, Access Bank Plc, to supplement the capital needs of its African expansion strategy. The investment was a Tier 1 capital, qualifying as a mandatory convertible instrument and received approval from the Central Bank of Nigeria.
Commenting on the development, Access Holdings’ CEO, Dr Herbert Wigwe, said that the investment is a capstone initiative following the $500 million additional Tier 1 capital raised by the bank in 2021 and would help to advance Access Holdings’ long-term vision.
The latest development in Seplat Energy’s legal issues
Seplat Energy said the Federal High Court in Lagos lifted the ex parte interim orders against it, its CEO Roger Brown, and Board Chairman. The court orders, among other things, restrained the company’s CEO Roger Brown from administering the company’s affairs.
Note that the interim orders were related to a court petition filed by five individuals who claimed to be minority shareholders of Seplat Energy. The company has said that the petition lacks proper basis and is based on false allegations, and is confident that the judicial process will address the matter appropriately. The company continues to engage with the Ministry of Interior on this matter.
UBA said it will target increased profitability
The CEO of United Bank for Africa (UBA), Oliver Alawuba, pledged to improve revenue and profitability across major business lines in the 2023 financial year while assuring investors of the bank’s focus on adopting strict cost efficiency and optimization. Nairametrics reported that Mr Alawuba made the pledge while presenting his Strategic Review and Outlook during the company’s recently held Investors and Analysts Conference Call.
Note that in the 2022 financial year, UBA delivered gross earnings of N853 billion, up 29.2% on the prior year, and an operating income of N591 billion, representing an increase of 33.6% from N443 billion in 2021. The bank also grew its loan portfolio by N605 billion, or 21.4%, from the prior year.
BUA Foods’ impressive financial report
BUA Foods Plc reported a 38% growth in Profit Before Tax to N107.2 billion in 2022, driven by a 26% increase in revenue to N418.3 billion. The company’s gross profit also increased by 29% to N132.8 billion, despite the high input cost environment.
This growth was due to slight selling price adjustments made during the year. However, the company faced challenges with a 24% increase in the cost of sales to N285.6 billion due to the high cost of raw materials and energy, which resulted in a higher cost of production.
FCMB Group reported 61% earnings growth
FCMB Group Plc reported a 61% YoY growth for the financial year that ended December 2022, with double-digit growth recorded across all business segments. A statement seen by Nairametrics said gross revenue grew by 35.5%, with deposits rising by 25.1% and loans and advances witnessing a 12.4% surge. The group’s digital transformation drive resulted in a 42.0% growth in digital revenues from N26.1 billion in 2021 to N37.1 billion in 2022.
The company proposed a dividend of 25k per share and also delivered impressive environmental, social, and governance results in various areas.
Unilever declared dividend
Unilever Nigeria Plc said it will pay a final dividend of 25 kobo per share for FY 2022, amounting to a total payout of N1.45 billion. The dividend payout, which is subject to shareholders’ approval and appropriate withholding tax, will be paid electronically to shareholders whose names appear on the Register of Members at the close of business on Monday 17, April 2023.
The consumer goods maker recently released its audited report for the year ending 31st December 2022, with revenue growing by 26% to N88.5 billion. The report also showed a gross profit of N31.1 billion for the year.
Julius Berger also proposed a dividend payout
Julius Berger Nigeria Plc proposed a final dividend payout of N2.50 per share for the financial year 2022. The payment is subject to shareholders’ approval, and appropriate withholding tax will be paid to shareholders whose names appear in the Register of Members as of May 26, 2023.
Julius Berger Nigeria Plc reported a pre-tax profit of N15.54 billion for the 2022 financial year, representing a 9.60% increase from the previous year’s figure. The company’s revenue rose to N440.98 billion from N338.81 billion in the same period in 2021, while its cost of sales increased by 34.53% to N366.36 billion from N272.32 billion in 2021.
Infinity Trust confirmed Dr Adeoye’s appointment
Dr Olufemi Adeoye Fabanwo was confirmed as an Independent Non-Executive Director of Infinity Trust Mortgage Bank by the Central Bank of Nigeria on 28th March 2023. His appointment is effective from 3rd April 2023 and is subject to ratification by shareholders at the Bank’s next Annual General Meeting (AGM). Dr Fabanwo has had a successful banking career spanning three and a half decades in the Central Bank of Nigeria (CBN) until 2017.
Dr Olufemi Fabanwo served in various capacities as the Director of Other Financial Institutions Supervision Department between 2010 and 2014 and the Director of the currency operations from 2014 to 2017. He is a fellow of the Chartered Institute of Bankers of Nigeria (FCIB) and has a PhD in Business Administration from Atlantic International University, USA.
International Breweries appointed Cherian Kurien as Non-Executive Director
International Breweries Plc appointed Cherian Kurien to its board as a Non-Executive Director following the resignation of Tolulope Adedeji who was appointed Senior Director at Labatt Breweries, Canada (AB InBev). The appointment of Mr Kurien, who is a Vice President of Finance and Technology at AB InBev, was approved by the Board of IB PLC at its meeting held on 31st March 2023, according to a statement by the company’s Secretary/General Counsel, Ayokunle Ayoko.
Kurien has an MBA from Harvard Business School and is a CFA charter holder with experience working in the consumer goods and shipping industries across four continents.