FBNH FY 2023 unaudited numbers showed strong growth in both Interest and Non-Interest Income. Interest Income was up 66.3% y/y (8.4% above our forecast) driven by growth in Interest Income on both Investment Securities and Loans. Net Loans to customers were up 67.95% y/y (including the impact of devaluation).
Airtel Africa’s 9M 2024 financials showed a decline in Revenue by 1.4% to US$3.86bn from US$3.91bn in 9M 2023. On a q/q basis, Total Revenue declined by 0.6% to US$1.24bn in Q3 2024 from US$1.25bn in Q2 2024. The company attributed the decline in Revenue to the impact of currency devaluations in the period. Currencies that depreciated include the Nigerian Naira (64.7%), the Zambian kwacha (22.7%), the Malawi kwacha (21.5%), and the Kenyan shilling (21.1%). The company noted that the Nigerian Naira devaluation reduced Revenue by US$579m during the nine-month period ended 31 December 2023.
In its unaudited FY 2023 earnings results, UAC of Nigeria Plc’s (UACN) Revenue was up 8.6% y/y to N118.68bn from N109.27bn in FY 2022. The Paints, Packaged Foods & Beverages, and the Quick Service Restaurants (QSR) segments reported the highest growths in sales to the tune of N23.86bn, N28.59bn and N3.72bn in FY 2023 from N19.21bn, N23.23bn and N3.08bn in FY 2022 respectively. Conversely, the Revenue inflow for Animal Feeds & Other Edibles and Other Revenue dropped to N62.30bn and N208m in FY 2023 from N63.46bn and N297m in FY 2022.
In its FY 2023 unaudited earnings, Cadbury Nigeria Plc. (Cadbury) reported a 45.6% y/y growth in Revenue to N80.38bn from N55.21bn in FY 2022. Its cost of sales (ex-depreciation) grew slower than Revenue, up 30.2% y/y to N60.46bn for FY 2023 from N46.45bn in 2022. Consequently, FY 2023 Gross Profit increased to N19.92bn, up from N8.76bn in 2022. Gross profit margin advanced 8.9ppts to 24.8% from 15.9% in 2022.
Guinness Nigeria Plc released its Q2 2024 (Oct-Dec) unaudited numbers. The renowned foreign extra stout brewer recorded double-digit Revenue growth of 26.6% y/y to N83.06bn (Q2 2024) from N65.6bn (Q2 2023). Likewise on a q/q basis, Revenue grew by 39.5% to N83.06bn from N59.54bn recorded in Q1 2024. The Q2 2024 impressive topline performance aligns with our expectation that revenue will grow significantly due to holiday season demand.
FX regime changes and the elimination of the longstanding subsidy on Petroleum Motor Spirit (PMS) were the catalysts that initiated a series of events propelling the Nigerian equities market to an impressive 45.90% gain by the year's close. This marked the fourth consecutive year of positive returns for the market. Despite the strong macroeconomic headwinds that characterized the year, the reforms renewed investor confidence and resulted in massive revaluation gains for many banks. The positive momentum was further fueled by several corporate actions and expectations of renewed foreign inflows. The market has begun 2024 on a positive note and we believe the momentum can be sustained especially if the broader economy starts to realize gains from the implemented reforms.
