Earnings Flash

FBNH Plc HY’2020 results showed an increase in the bottom-line as profit for the period grew by 23.84%. Interest income however declined by 4.31% from N216.76 bn in HY’2019 to N207.42 bn in the current period.

Net interest income went down by 7.35% from N141.69 bn in HY’2019 to N131.28 bn in HY’2020, due to the drop in interest income and a 1.44% increase in interest expense. The company recorded a 14.70% increase in operating profit from N36.23 bn in HY’2019 to N41.55 bn in the current period. The increase in operating profit is attributable to a 16.41% and 183.05% increase in net fees and commission income and trading income,
respectively. Also, impairment charges increased by 38.65% from N22.11 bn in HY’2019 to N30.65 bn in HY’2020. Profit before tax advanced by 14.26% from N36.25 bn in HY’2019 to N41.42 bn in the current period. Profit after tax went up by 23.84% from N28.78 bn in HY’2019 to N35.65 bn in the current period.

Consequently, the company recorded a 60.71% increase in EPS to N1.35 in HY’2020 from N0.84 in HY’2019. FBNH currently trades at N5.00.

Please find attached our full report

Unilever Nigeria Plc. HY’2020 results showed that revenue declined by 35.91% from N42.66 bn in HY’2019 to N27.34 bn in the current period. This decline was due to the slowdown witnessed in both their food products and home/personal care revenue sources, as their performance was hampered by the weakened purchasing power of consumers in the economy. Similarly, gross profit fell by 45.74% to N6.16 bn in HY’2020 from
N11.35 bn in HY’2019, despite a 32.35% decline in cost of sales. The firm recorded a decline of 136.62% in operating profit from N3.85 bn in HY’2019 to -N1.41 bn in the current period, and this was majorly driven by a 196.80% increase in impairment loss. Profit before tax declined by 112.07% to -N566.80 mn in the current period from N4.70 bn in HY’2019, due a 29.33% decline in finance income. Consequently, profit after tax fell by 114.77% from N3.52 bn in HY’2019 to -N519.11 mn in the current period. The firm recorded an 114.75% decline in earnings per share from N0.61 in HY’2019 to -N0.09 in the current period. The stock currently trades at N12.25.

Please find attached our full report

United Capital’s result for HY’2020 showed that gross earnings increased by 37.26% from N3.24 bn in HY’2019 to N4.45 bn in HY’2020. Net operating income rose by 45.40% from N2.82 bn in HY’2019 to N4.10 bn in HY’2020, due to a 347.65%, 85.03% and 77.15% increase in net interest margin, net trading income and fees and commission income, respectively. Profit before tax rose by 14.10% from N1.99 bn in HY’2019 to N2.27 bn in the current period, despite the surge in key expenditure line items, such as the personnel expenses which rose by 7.86%, and the other operating expense which increased by 87.73%. Profit after tax increased by 15.98% to N1.91 bn in the current
period from N1.65 bn in HY’2019. Consequently, Earnings per share went up by 14.29% from N0.28 in HY’2019 to N0.32 in the current period.

Please find attached our full report

Presco’s results for HY’2020 revealed that revenue increased by 29.35% from N10.41 bn in HY’2019 to N13.46 bn in the current period. Similarly, gross profit went up by 32.10% to N9.04 bn in HY’2020 from N6.85 bn in HY’2019, despite a 24.06% surge in cost of sales. In the same vein, operating profit increased by 51.73% from N4.35 bn in HY’2019 to N6.60 bn in the current period. The growth recorded in the operating
profit was supported by reductions in key expenditure line items, such as; the administrative expenses and selling and distribution expenses, which both declined by 21.01% and 18.00%, respectively. Profit before tax rose by 67.71% to N5.77 bn in HY’2020 from N3.44 bn in HY’2019, supported by an 8.64% decline in finance
cost. Profit after tax advanced by 70.51% from N2.58 bn in HY’2019 to N4.39 bn in HY’2020. Consequently, earnings per share grew by 70.82%, from N2.57 in HY’2019 to N4.39 in HY’2020. Presco currently trades at N47.45.

Please find attached our full report

Okomu Oil Palm Plc. HY’2020 results showed that revenue grew by 57.92% from N8.57 bn in HY’2019 to N13.53 bn in the current period. Similarly, gross profit went up by 81.03% to N12.44 bn in HY’2020 from N6.87 bn in HY’2019. The growth in gross profit was driven in part by the growth in revenue, and by a 35.98% decline in cost of sales. Profit before tax grew by 94.15% to N5.51 bn in the current period from N2.84 bn in
HY’2019. Profit after tax rose by 64.29% from N2.44 bn in HY’2019 to N4.01 bn in the current period.

Earnings per share increased by 58.49% from N2.65 in HY’2019 to N4.20 in the current period. Okomu has a BVPS of N32.79, P/BV of 2.29x and P/E ratio of 8.92x. Okomu currently trades at N74.95.

Please find attached our full report

Lafarge Africa Plc. HY’2020 results showed that revenue grew by 2.25% from N117.89 bn in HY’2019 to N120.54 bn in HY’2020. Similarly, gross profit went up by 5.70% to N41.71 bn in HY’2020 from N39.46 bn in HY’2019. The growth in gross profit was driven by the growth in revenue. Profit from operations rose by 17.81% from N27.85 bn in HY’2019 to N32.81 bn in HY’2020, due to an 30.64% and 9.93% decline in administrative expenses and selling and distribution expense, respectively. Profit before tax grew by 86.09% to N28.76 bn in HY’2020 from N15.45 bn in HY’2019, on the back of a 66.77% decline in finance cost. Profit after tax rose by 47.29% from N15.84 bn in HY’2019 to N23.33 bn in HY’2020, despite a 1,506% increase in taxes. Consequently, earnings per share increased by 158.93%, from N0.56 in HY’2019 to N1.45 in HY’2020.
The stock currently trades at N10.95.

Please find attached our full report

Dangote Cement Plc. results for HY’2020 showed that revenue increased by 1.95% from N467.73 billion in HY’2019 to N476.85 billion in HY’2020. Gross profit dipped marginally by 0.05% from N274.56 billion in HY’2019 to N274.43 billion in HY’2020, due to a 4.79% increase in cost of sales. Operating profit advanced from N170.50 billion in HY’2019 to N173.48 billion in HY’2020, reflecting a growth of 1.75%. The growth
recorded in operating profit can be attributed to a 123.13% increase and 3.32% decline, recorded in other income and selling and distribution expenses, respectively. Profit before tax also rose by 4.74% from N155.49 billion in HY’2019 to N162.85 billion in HY’2020, due to a 121.77% increase in finance income. Profit after tax advanced by 5.79% from N119.24 billion in HY’2019 to N126.14 billion in HY’2020. Consequently, EPS grew
by 6.28% to N7.45 in HY’2020 from N7.01 in HY’2019. The stock currently trades at N134.20

Please find attached our full report

Cadbury Nigeria Plc. HY’2020 results showed that revenue declined by 18.18% from N19.45 bn in HY’2019 to N15.92 bn in the current period. This decline was due to the slowdown witnessed in domestic sales, as their performance was hampered by the weakened purchasing power of consumers in the economy. Consequently,
gross profit fell by 20.12% to N3.31 bn in HY’2020 from N4.14 bn in HY’2019.

Similarly, the firm recorded a decline of 19.59% in operating profit from N888.78 mn in HY’2019 to N714.70 mn in the current period.

Profit before tax fell by 19.89% to N766.66 mn in the current period from N957.06 mn in HY’2019, due a 23.90% decrease in net finance income. Profit after tax declined by 19.89% from N669.94 mn in HY’2019 to N536.66 mn in the current period. Earnings per share dipped by 19.44%, from N0.36 in HY’2019 to N0.29 in the current period. Cadbury currently trades at N7.25.

Please find attached our full report titled

Africa Prudential’s result for HY’2020 showed that revenue from contracts with customers fell by 32.12%, from N870.14 mn in HY’2019 to N590.67 mn in the current period. Interest income however increased by 12.45% from N1.14 bn in HY’2019 to N1.28 bn in the current period.

Consequently, gross earnings went down by 6.84% from N2.01 bn in HY’2019 to N1.87 bn in HY’2020, driven by the fall in revenue. Profit before tax increased by 0.61% from N1.21 bn in HY’2019 to N1.22 bn in HY’2020, due to a 100% and 12.57% decline in finance cost and other operating expenses, respectively. Profit after tax also rose by 5.34% to N1.08 bn in the current period from N1.03 bn in HY’2019, on the back of a 26.13% decline in tax expense. Consequently,

Earnings per share advanced by 5.88% from N0.51 in HY’2019 to N0.54 in the current period.

Please find attached our full report titled