Nigeria | NGX

In its full-year results, GUINNESS recorded 28.9% and over eleven-fold growths in revenue and PAT to N206.8 billion and N15.7 billion, respectively. Notably, the bottom line reached its highest level in ten years, aided by price increases, cost efficiency, and a material slump in net finance cost. On the back of the company's consistently positive results, its share price has rallied by 132.1% and 187.2% on a year-to-date and year-on-year basis, making it one of the best-performing stocks on the NGX.

FLOURMILL's Q1'22/23 results revealed continued top-line growth momentum across all its segments (with the inclusion of Honeywell Flour), driven by stronger B2B and B2C strategies. We highlight the key drivers of Q1'22/23 performance across the different segments as well as our expectations for the same going forward:

Following the release of ETI's H1'22 results and subsequent investor call, we reassess the investment case for the bank. The result of our assessment corroborates our view on the strong impact of rising yields on performance and highlights the potential positives of management's renewed efforts to reposition the Nigerian business.

We revise our FY’22 earnings expectation to N371.7 billion in FY'22 (vs N377.8 billion in our previous forecast). The downward revision to our projection reflects weaker than expected voice growth (H1'22: 2.9% vs our 5.5% expectation) and a higher interest expense burden.

The roils from geopolitical tensions, and their consequent passthrough to commodities prices and global inflation created an early dilemma for monetary authorities at the start of 2022. And even though it was hard to tag it as a surprise, the Russia/Ukraine war sent shockwaves to economies miles away from Eastern Europe. The crisis led to material trade routes disruptions, a surge in commodities prices that worsened the baggage from inflation, and for a while, several permutations on the likelihood of a third world war.

Following the release of FBNH’s audited FY’21 and unaudited Q1’22 results, we had a sit-down with the firm’s management to obtain greater clarity on the strategic thrust of the institution for the next three years. Our interactions with management revealed the following key themes: