Stanbic IBTC Holdings Plc held a conference call on the 5th of April 2024 to discuss its recently disclosed FY'23 financial results and give updates on its strategic objectives. Below are some of the key highlights of the call.
In March, the Nigerian equities market rebounded as the benchmark index advanced by 4.6% to settle at 104,562.06 points, while the market capitalisation added N4.4 trillion (+8.07%) to close at N59.1 trillion.
In its 2023 audited earnings result, Cadbury Nigeria Plc. (Cadbury) reported a 45.6% y/y growth in Revenue to N80.4bn from N55.2bn in 2022. Its cost of sales (adjusted for depreciation) grew slower than Revenue, up 33.2% y/y to N61.0bn from N46.5bn bringing its Gross Profit to N18.5bn in 2023 from N8.8bn in 2022. Consequently, its Gross Profit margin increased 7.1ppts to 23.0% from 15.9%. On a q/q basis, the company’s Revenue was down 10.2% to N21.2bn in Q4 2023 from N23.6bn in Q3 2023.
The Afrinvest weekly sentiment improved to 1.6x (previously 1.4x). This week, we expect the market to trade positively on the back of improved investors’ sentiment.
Okomu Oil Palm Plc (OKOMUOIL) in its full year 2023 audited results reported an impressive 26.6% y/y growth in Revenue to N75.11bn from N59.32bn (FY 2022). On a q/q basis, Revenue declined, down 27.9% in Q4 to N14.46bn from N20.05bn recorded in Q3 2023. Though we observed a decline in CPO price in Q4 2023, we believe demand may have also been low. In FY 2023, the business grew its revenue from palm oil-produce by 24.7% to N67bn, rubber sales by 44.7% to N7.95bn, and palm oil processing by 54% to N120.4bn.
In FY 2023, MTN Nigeria saw substantial growth driven primarily by double-digit increases in both voice (+10% y/y to N1.14 billion) and data revenue (+40% y/y to N1.07 billion), despite experiencing inflationary pressures on Operating Expenses (+26.80% y/y to N615.82 billion). For 2024, we anticipate MTN Nigeria will sustain its robust topline growth. Our projections indicate a 45% y/y growth in data revenue and an 8% y/y growth in voice revenue. Overall, we forecast a 26.1% y/y increase in Revenue to N3.11 trillion in 2024 from N2.47 trillion in 2023.
