Earnings Flash

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.

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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.

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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

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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.

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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.

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Dear Client/Reader,

CCNN continued its superb performance in 9M’2018 as revenue grew by 44% to N19.6bn in contrast to the N13.6bn that was recorded in the same period last year. The substantial rise in revenue resulted from 47% increase in sale of cement by the company. Gross profit also increased significantly by 65% from N5.2bn to N8.6bn undeterred by a 30% rise in cost of sales. The impressive topline led to the growth in bottom-line as PBT and PAT grew by 100% and 97% respectively while EPS also increased from N1.62 in 9M’2017 to N3.19 in 9M’2018. With the merger of CCNN and BUA cement which is expected to continuously provide a compelling opportunity to capture significant synergies and create value for shareholders of the company in terms of stronger competitive advantage and improvement in both topline and bottom-line going forward, we maintain our medium to long term “BUY” recommendation on the stock of CCNN with a fair value of N35.26.

Key Multiples/Ratios

  Book Value Per Share- 13.41

 Gross Profit Margin- 44.10%

  Net Profit Margin-  20.50%

  Return on Equity – 23.80%

  OPEX/Sales ratio- 14.76%

  Return on Asset-    13.13%

  Cost of Sales Margin- 55.91%

  Price to Book Value- 1.28x

  Year-to-Date Change- 80.53%

Please find attached CCNN 9M’18 result analysis.

Dear Client/Reader,

Fidelity Bank Plc. results for 9M 2018 showed an impressive PBT growth of 24% y/y from N16.2 bn in 9M’17 to N20 bn. The key driver behind the PBT growth was the growth of 9% y/y in interest income and 55% reduction in impairment charges which were strong enough to partly offset the impact of the increase in interest expense by 10% y/y and a decline of 41% y/y in other operating income. Non-interest income (NIR) declined by 8% y/y to N18.3 bn (9M’17; N20 bn) while operating expenses also saw a growth of 6.5% y/y to N50.6 bn (9M’17; N47.5 bn). However, PAT grew by 23.6% y/y to N17.9 bn (9M’16; N14.5 bn). Consequently, Earnings per share grew by 24% y/y from N0.50 in 9M’17 to N0.62 in the current period.

Key Multiples/Ratios

  Book Value Per Share- 6.64

  Net Profit Margin-  12.85%

  Return on Equity – 9.28%

  Return on Asset- 1.06%

  Price to book value- 0.30x

  Year-to-Date Change- 18.70%

  Total Loan to Total Deposit- 163.84%

  Current Shares Outstanding-  28.96 billion

  Recommendation- BUY

Please find attached Fidelity Bank Plc. 9M-2018 result.

Earnings Flash- Fidelity Bank Plc. 9M-2018

Dear Client/Reader,

FBNH Plc. for 9M 2018 results showed that Interest income declined by 5% y/y from N356 bn in 9M’2017 to N338 bn due to the 5% and 2% y/y reductions in income from investment securities as well as loans and advances given to customers respectively. Impairment charges reduced by 22% from N97.5 bn in 9M’17 to N76 bn in the current period. The firm also reported a significant growth in trading income which grew remarkably by 75% y/y from N15 bn in 9M’2017 to N26 bn. However, PBT and PAT declined by 7.4% and 2% respectively due to the 7% increase in operating expenses that increased from N172 bn in 9M’17 to N184 bn in 9M’18. Consequently, EPS reduced by 2.4% y/y from N1.25 in 9M’17 to N1.22.

Key Multiples/Ratios

 Book Value Per Share- 19.38

 Net Profit Margin-   10.68%

 Return on Equity –  6.45%

 Return on Asset- 0.84%

 Price to book value- 0.49x

 Year-to-Date Change- 6.82%

 Total Loan to Total Deposit- 67.63%

 Current Shares Outstanding-  35.89 billion

  Price to Book Value- 2.23x

Please find attached FBNH Plc. 9M-2018 result.

Earnings Flash- FBNH Plc. 9M-2018