Nigeria | NGX

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.

The stricter requirement that banks are to meet the new capital thresholds with paid-up share capital and share premium only leaves our coverage names in a capital shortfall position. This exclusion of other forms of capital is quite significant given that these other sources account for c. 76.0% of total equity across our coverage. Specifically, the capital of our coverage banks comprises AT-1 (1.7%), retained earnings (27.4%), issued share capital & premium (24.0%), and other reserves (47.1%).

In its 2023 audited financial results, UAC of Nigeria Plc. (UACN) reported a 10.3%y/y growth in Revenue to N120.53bn from N109.27bn in FY 2022. The Animal Feeds and Other Edibles, Paints, Packaged Foods & Beverages, and the Quick Service Restaurants (QSR) revenue segments reported growth in sales to the tune of N64.17bn, N23.89bn, N28.55bn and N3.72bn in FY 2023 from N63.46bn, N19.21bn, N23.23bn and N3.08bn in FY 2022 respectively. However, Other Revenue declined to N205m in 2023 from N297m in 2022.

The NGX-ASI closed the month with a 4.6% uptick to print at 104,562.06 points. Resultantly, YTD return printed at 39.8% (previously 33.7%) while market capitalisation advanced 8.1% m/m to ₦59.1tn. Monthly trading activity improved as average volume and value traded rose 9.7% and 88.4% m/m to 595.7m units and ₦16.4bn, respectively. TRANSCORP (1.3bn units), GTCO (625.1m units), and UBA (621.5m units) were the top traded stocks by volume for the month, while GTCO (₦28.8bn), TRANSCORP (₦22.4bn), and ZENITH (₦18.4bn) led by value.

Access Holding’s FY 2023 audited numbers showed a 99.9% y/y growth in Interest Income (18.5% higher than our forecast) driven by growth in both Interest Income on Net Loans and yields on investment securities due to a higher yield environment and growth in earnings assets. Yield on earning assets increased to 12.8% in 2023 from 9.2% in 2022. Net Loans grew 57.6% in December 2023 compared with December 2022 inclusive of the impact of devaluation on foreign currency loans.

BUA Cement Plc held a conference call on the 21st of March 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.