Nigeria | NGX

The bulls dominated January as the end-of-year market rally of 2023 flowed into the month. For context, the NGX-ASI appreciated by 35.3%, with the benchmark index crossing over to new historical highs and settling at 101,154.67 points. Increased demand was seen in top tickers such as DANGCEM (+138.5%), BUACEMENT (+90.7%), BUAFOODS (+40.5%), GEREGU (+42.4%), and SEPLAT (+33.1%). Thus, market capitalisation appreciated by N14.44 trillion to N55.36 trillion.

In its H1 2024 (6M ended November-2023) earnings result, PZ Cussons Plc. (PZ) recorded Revenue growth of 18.9% y/y to N68.09bn from N57.26bn in H1 2023. Q/q, PZ’s Revenue grew 19.1% y/y to N37.02bn Q2 2024 from N31.07bn in Q1 2024.

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.