2017 FY Corporate results so far show mixed performances

The logo of the Nigerian Stock Exchange is pictured in Lagos, Nigeria November 9, 2016. REUTERS/Afolabi Sotunde

CORPORATE results for full year 2017 have been rolling into the Nigerian Stock Exchange, NSE, since after the Nigerian Breweries, NB Plc, blazed the trail previous week.

The highlights have shown mixed performances, a development which also came along side mixed performances in equities trading.

But trading appears to be bullish because of high expectations of impressive results from the oil & gas sector as well as the banking sector.

Nestlé Nigeria Last weekend the multinational beverages giant, Nestle Nigeria Plc, turned in a moderately impressive earnings report for FY ’17.

Revenue was up by 35.2 percent, slightly under-performing cost of sales which rose by 34.4 percent. But Net Finance Cost was hugely impressive declining by 46.8 percent, though OPEX spiked by 21.7percent.

Consequently, the bottomline was hugely impressive with Earnings Before Interest and Tax jumping 45.8 percent, while Profit Before Tax, PBT, leaped 117.3 percent with a massive 325.5 percent rise in Profit After Tax, PAT.

SEPLAT Petroleum At mid-week Seplat Petroleum Plc, the only upstream on the NSE, had turned in FY’17 figures showing a highly impressive performance.

Gross Revenue was up by 118.2 percent outpacing cost of sales which rose 55.9 percent. Also OPEX declined by 16.5 percent. Consequently, the company’s Earnings Before Interest and Tax, EBIT, as well as its profitability reversed from negative position, though Net Finance Cost jumped 747 percent.

United Capital United Capital Plc, a principal dealers in the Nigerian capital market turned in its FY’17 showing adverse financials over previous year’s records. The company’s gross earnings declined marginally by 0.9 percent, though Net Operating Income rose 5.0 percent.

But OPEX rose significantly by 21.1 percent. Consequently, the company’s bottomline took a hit, with PBT declining 12.9 percent while PAT nose-dived 36.8 percent.

A significant contributor to the adverse result was the tax charges which massively rose by 226.4 percent.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.


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