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Nestlé Nigeria declares 22.4% sales increase, N79.5bn PAT loss

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Nestlé Nigeria PLC, has declared a N547.1 billion sales increase for the 2023 financial year, translating to a 22.4 percent increase of N100 billion compared to the corresponding period of 2022.

The company’s Managing Director, Mr Wassim Elhusseini, made the disclosure in the Nestlé Nigeria PLC Full Year 2023 financial results on Wednesday in Lagos.

Elhusseini revealed that while the company’s operating profit jumped by 41.2 percent, reaching 122.7 billion; its Profit After Tax (PAT) was negatively impacted by the devaluation of the Naira.

He added that while its gross profit totalled N217.2 billion, representing a 39.4 percent increase from N155.8 billion in 2022, the devaluation of the Naira had an adverse impact on its PAT resulting in a loss of N79.5 billion for 2023.

“I thank every member of our team for the unwavering commitment and dedication which resulted in the strong revenue growth and operating profit vs 2022 in spite of the challenging economic environment.

“The devaluation of the Nigerian Naira in 2023 which led to a revaluation of our foreign currency obligations undoubtedly impacted our financing cost and consequently the profit after tax.

“However, we remain optimistic of our capacity to overcome the current economic difficulties and emerge stronger,” he said.

The Nestlé Nigeria Managing Director expressed the company’s dedication to its purpose of unlocking the power of food through responsible local sourcing and confection of high-quality nutritious food and beverages for families across Nigeria.

“We also remain steadfast in optimising our operations to ensure the availability and accessibility of affordable and nutritious products to our consumers in anticipation of a timely turnaround in the business environment,” he said.

Nestlé Nigeria is a leading food and beverage company in Africa, known for its quality, excellence, and commitment to creating shared value.

The company in 2023 received recognition for its contributions to society through its CSV initiatives.

Some of them include Sustainability, Enterprise and Responsibility (SERAS) CSR 2023 Awards for Best Company in Rural Population Integration, Best Company in Food Security, and 2nd Runner-up for Most Responsible Organization in Africa among others.

 

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Equity market: Investors lose N412bn

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Losses in the stocks of Dangote Sugar, Guaranty Trust Holding Company (GTCO), among others have further weakened the performance of the equity market of Nigerian Exchange Ltd. (NGX).
Specifically, investors lost N412 billion or 0.71 per cent, as the market capitalisation, which opened at N58.276 trillion, closed at N57.864 trillion.

Similarly, the All-Share index shed 0.71 per cent or 733 points to settle at 102,314.56, as against 103,047.23 recorded on Monday.Consequently, the Year-To-Date (YTD) return dropped to 36.83 per cent.

Profit taking in some banking stocks such as:  FBN Holdings (FBNH), Zenith Bank, Access Corporation, as well as United Capital, Nestle, Eterna Plc, among other stocks pushed the market performance further to a negative terrain.

Market breadth also closed negative with 36 losers and 12 gainers on the trading floor of the Exchange.

On the losers table, Dangote Sugar and GTCO led by 10 per cent each to close at N53.10 and N41.40 per share, respectively.

Flour Mills lost 9.87 per cent to close at N33.80, Multiverse declined by 9.84 per cent to close at N13.75 and FTN Cocoa Processors depreciated by 8.82 per cent to close at N1.55 per share.

Conversely, Transcorp led the gainers table by 9.93 per cent to close at N14.95, Morison Industries Plc followed by 9.87 per cent to close at N2.56 per share.

Also, Oando Plc added 9.61 per cent to close at N12.55, Caverton advanced by 8.54 per cent to close at N1.78 and Deap Capital Management rose by 7.94 per cent to close at 68k per share.

However, analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 569.96 per cent.

A total of 734.04 million shares valued at N21.59 billion were exchanged in 12,491 deals, compared to 245.86 million shares valued at N3.22 billion, exchanged in 5,302 deals traded in the previous session.

United Bank of Africa (UBA) led the volume chart with 148.88 million shares traded in deals worth N4.01 billion.

Zenith Bank traded 135.81 million shares valued at N5.48 billion, GTCO sold 98.76 million shares worth N4.13 billion, Transcorp transacted 71.43 million shares worth N998.48 million.

Access Corporation also sold 44.31 million shares valued at N868.1 million.

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Zenith Bank posts remarkable triple digit topline, bottom line growth

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Zenith Bank Plc has announced its audited results for the year ended December 31, 2023, achieving a remarkable triple-digit growth of 125% in gross earnings from NGN945.6 billion reported in 2022 to NGN2.132 trillion in 2023. According to the audited financial results for the 2023 financial year presented to the Nigerian Exchange (NGX), this impressive triple-digit growth in gross earnings resulted in a Year-on-Year (YoY) increase of 180% in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023. Profit After Tax (PAT) also recorded triple-digit growth of 202% from NGN223.9 billion to NGN676.9 billion in the period ended December 31, 2023.

The increase in gross earnings is primarily due to growth in interest and non-interest income. Interest income increased by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023. Non-interest income grew by 141% from NGN381 billion to NGN918.9 billion in the same period. The increase in interest income is attributed to the growth in the size of risk assets and their effective repricing, alongside the rise in the yield of other interest-bearing instruments over the year. Growth in non-interest income was driven by significant trading gains and an increase in gains from the revaluation of foreign currencies.

The cost of funds grew from 1.9% in 2022 to 3.0% in 2023 due to the high interest rate environment while interest expense increased by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023. Notwithstanding the 32% growth in operating expenses in 2023, the Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023 due to improved top-line performance. Return on Average Equity (ROAE) increased by 118% from 16.8% in 2022 to 36.6% in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns. Return on Average Assets (ROAA) also grew by 95% from 2.1% to 4.1% in the same period.

The Group has continued to deepen its market leadership in key corporate and retail deposit segments as customer deposits increased by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023. Its retail drive continues to yield dividends as retail deposits now constitute 46% of total deposits (compared to 44% in 2022) and grew by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023, also reinforcing increased customer confidence in the Zenith brand.

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eTranzact records N2.2bn profit in 2023

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eTranzact International Plc on Monday announced a Profit After Tax (PAT) of N2.2 billion for the year ended Dec. 31, 2023, as against N1.18 billion posted in 2022.

Company Secretary of eTranzact, Mr Isaiah Oreweme, said this in the company’s annual report and audited financial statements for the year 2023, sent to the Nigerian Exchange Ltd. (NGX) in Lagos.

Oreweme said that the electronic payment technology and maintenance services company’s Profit Before Tax (PBT) for the year under review stood at N3.2 billion, compared to N1.61 billion recorded in the year 2022.

He stated that the company’s gross profit rose to N8.32 billion at the end of the 2023 financial year from N5.7 billion posted in the previous year.

According to him, the total liabilities of eTranzact leaped to N16.73 billion as at the close of the 2023 financial year, from N10.5 billion recorded in the year 2022.

The company secretary stated that the firm’s total assets also grew to N28.21 billion in 2023, compared to N19.78 billion posted in the year 2022.

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