Nigeria | NGX

After six consecutive quarterly losses, UACN rebounded into profit in Q2'23. The rebound mirrored improvements in EBIT and net finance income. The gains in the former were mainly driven by passthrough from higher firm-wide revenue due to price increases and volume growth in Paints, which masked the impact of soaring operating costs. Furthermore, the company recorded a net finance income of N2.9 billion, primarily bolstered by a foreign currency revaluation gain of ₦3.6 billion on the holding company's treasury investment portfolio, of which c.30.0% is denominated in foreign currency.

Guinness Nigeria Plc’s (GUINNESS) FY numbers showed mixed performance across key metrics. The renowned foreign extra stout brewer recorded a double-digit Revenue growth of 10.9% y/y to N229.44bn, amidst high inflationary pressure which has weakened consumer purchasing power. Despite a moderate rise in Cost of Sales (13% y/y to N144.7bn) and Operating expenses (13% y/y to N55.4bn), a net FX loss of N49.1bn resulted in a Pre- tax loss of N22.1bn compared with a Pre-tax profit of N23.6bn in FY 2022.

In its FY 2023 (12M ended 31-March-2023) earnings result, Flour Mills Nigeria Plc’s (Flourmills) revenue grew 32.3% y/y to N1.54tn from N1.16tn in FY 2022 (12M ended 31-March-2022). This was boosted by growth in all its revenue segments (food, agro allied, sugar and support services). On a q/q basis, Flourmill’s Revenue grew by 8.2% q/q to N425.69bn in Q4 2023 from N393.39bn in Q3 2022.

Flour Mills Nigeria Plc. (FLOURMILL) released its Q1 2024 (3M ending 30-June- 2023) earnings result wherein its Revenue advanced by 34.4% y/y to N456.38bn from N339.60bn in Q1 2023 (3M ended 30-June-2022). This was supported by the growth in its revenue segments of food, agro allied, sugar and support services to N303.65bn, N79.86bn, N66.49bn and N6.37bn respectively in Q1 2024. In comparison to the performance in the previous quarter, Flourmill’s Revenue was up 7.2% q/q to N456.38bn in Q1 2023 from N425.69bn in the preceding quarter.

Stanbic’s H1 2023 audited numbers showed a 61.6%y/y increase in Interest Income to N110.3bn driven by improved yields on risk assets. Q/q (Q2 2023 compared with Q1 2023), Interest Income was up 18.7%. Net Loans to customers was up 37.4% in H1 2023 from December 2022 (inclusive of the impact of the devluation on foreign currency loans). Interest Expense also grew strongly, up 110% y/y to N37.6bn. Q/q, Interest Expense was up 67.7%. Customers Deposits were up 31.5% in H1 2023 (also inclusive of the impact of devaluation) compared with December 2022. Overall, Net Interest Income grew 44.3% y/y to N72.7bn in H1 2023.

Lafarge Africa reported a 5.9% y/y Revenue growth to N197.6bn in H1 2023 from N186.5bn in the prior period (H1 2022). Similarly, on a q/q basis, Revenue was up 15.3% to N105.8bn in Q2 2023 from N91.8bn in Q1 2023. The broad-based growth in cement sales (up 10% to N102.4bn) and aggregate and concrete sales (up 23.2% to N3.3bn) contributed to the marginal increase in topline growth in H1 2023, despite a decrease in sales of other products (down 51.9% to N85.4bn).