9 months ago

BusinessDay 13 April 2018


22 BUSINESS DAY COMPANIES & MARKETS Company news analysis and insight C002D5556 Friday 13 April 2018 FBNInsurance maintains strong performance with 37% growth in PBT Pg. 23 These charts validate CCNN’s stock rally …Profit hits five year high of N3.22bn BALA AUGIE The Cement Company of Northern Nigeria (CCNN) Plc’s profit after tax stood at N3.22 billion as at December 2017, representing a 106.50 percent surge from the N1.56 billion recorded five years ago. Revenue followed the same growth trajectory, hitting N19.58 billion in December 2017. This represented a 29.83 percent increase from the N15.31 billion recorded in December 2013. The company’s shares have gained 71.31 percent since January 2, 2015, to close at N17.80 percent at close of trading day on Wednesday April 6, 2018. The relative peace in the northern part of the country and low competition where the company supplies cement were major drivers of utilisation rates for the company. The cement maker is efficient in deploying shareholders’ resources in generating higher profit as net profit margins hit 16.25 percent in the period under review, a 0.60 point increase from 10.23 percent recorded five years ago. CCNN’s energy mix has yielded fruit as cost of sales ratio fell to 61.25 percent in the period under review, from 69.25 percent reported in December 2016. This means the company has spent less to produce each unit of product. A price increase across products that helped to outdo the rise in per tonne production underpinned margins. CCNN is lowly geared, which means it is not beleaguered by debt as debt-to-equity ratio stood at 13 percent as at Decem- ber 2017, as against five percent recorded in December 2013. With the positive economic outlook and government plans to spend on infrastructure, cement makers’ sales volume could get a boost. The International Monetary Fund (IMF) has projected that Nigeria’s economy will grow by 2.1 percent in 2018. The forecast which represents 0.2 percent from the 1.9 percent projected in October 2017. President Muhammadu Buhari has presented a record budget of N8.60 trillion to the National Assembly for 2018. Out of the total budget figure, N2.4 trillion has been earmarked for capital spending. Nigeria has infrastructure deficit of $2 trillion, according to the Africa Finance Corporation. The 17 million housing deficit is a low hanging fruit for cement makers to grow sales volume. “We estimate that an additional two million housing units by 2020e from the public sector alone (as highlighted in the economic recovery plan), will unlock about 20-24 million tonnes (mt) of cement over 2018e-2020e,” said analysts at RMBNS, in a recent report on Nigeria’s cement industry. Fidelity Bank flags off digital banking awareness campaign Hope Moses-Ashike Fidelity Bank Plc on Monday flagged off a Digital Banking Awareness Campaign Week, as part of concerted efforts to make financial services easy and accessible to its customers. Organised by the Bank’s South- West Directorate, the week-long campaign aptly dubbed “Go Digital” seeks to create awareness on its electronic banking products and services. Speaking at the opening ceremony at the Corporate Head Office in Lagos, Regional Bank Head (RBH), Ikeja, Ken Opara said the campaign is aimed primarily at sensitizing customers on the attendant benefits of using the Bank’s e-products. He harped on the need for banks to leverage digital technologies and platforms to provide greater convenient banking solutions for customers and according to him one bank that is the vanguard of this is Fidelity Bank. “The Bank has continued to invest significant resources on technology thus enabling it to digitize and offer easy to use e-banking products and services” he said. Some of the flagship products and services the staff would be creating awareness for include the recently upgraded Fidelity Online Banking platform. “The new look and more advanced and user-friendly online banking platform comes with additional functionalities thus making financial service activities easier and faster for an unmatched customer experience”, Opara stated. Motivated by the desire to continuously improve customer experience on its services, Fidelity Bank recently introduced a personalized self-service feedback system on its flagship Instant Banking Service *770#. With all of these significant strides in technology deployment, Opara noted that there was a need to enlighten the Bank’s customers on some of its latest offerings.

Friday 13 April 2018 FBNInsurance maintains strong performance with 37% growth in PBT COMPANIES & MARKETS Business Event BUSINESS DAY 23 Modestus Anaesoronye FBNInsurance, fast growing life insurance firm has released its financial report for the year ended 2017 with strong growth in key indices. Figures obtained from the published financial statements as approved by the National Insurance Commission show that profit before tax (PBT) grew by 37 percent from N3.11 billion in 2016 to N4.26 billion in 2017, while the gross premium written (GPW) grew from N9.9 billion in 2016 to N19.6 billion in 2017, a massive 98 percent increase. While commenting on the financial statement, Val Ojumah, managing director/ CEO, FBNInsurance, credited the strong performance to a combination of factors including continued penetration of the retail insurance space, strong cost optimisation culture, consistent and efficient service delivery across available touch point, exploitation of new service channels, disciplined risk management, and a well-motivated staff. “Our overall performance once again reinforces our strong earning capacity and robust capital base, which have put us in better stead to accommodate and sustain future growth. Our Return on Equity (RoE) rose to 34 percent, up from 29 percent in 2016 and also achieved a post-tax return on assets (RoA )of 6 percent,” he concluded. It will be recalled that FB- NInsurance was last year recognised –for the third time in four years- as the Best Life Insurer in Nigeria by World Finance, while Sanlam Emerging Markets (SEM) awarded her the prestigious Nations Cup for a glowing performance all round amongst SEM companies. At the home front, the beat association of Insurance journalists, National Association of Insurance and Pension Correspondents (NAIPCO), awarded the company as the fastest growing insurance company in Nigeria. An FBNHoldings company associated with the Sanlam Group SA, FBNInsurance was incorporated in 2010 to transact life insurance business in Nigeria and currently operates out of 42 sales outlets and three branches nationwide. L-R: Olumayowa Ogunwemimo, managing director, FSDH Asset Management Limited; Motadeni Balogun, chairman of the meeting/ head, collective investment scheme, United Capital Group; Aidevo Odu-Thomas, company secretary, FSDH Asset Management Limited; and Ahmed Nakwada, manager, Securities and Exchange Commission ;at the extraordinary general meeting of FSDH Coral Funds managed by FSDH Asset Management Limited in Lagos. Pic by Pius Okeosisi Nigerian Breweries 100% packaging materials sourced in Nigeria-MD Nigerian Breweries Plc says that 100 per cent of its packaging materials are sourced locally to boost the nation’s growth and development. Jordi Borrut Bel, the company’s Managing Director, said this at its pre-Annual General Meeting (AGM) media conference in Lagos on Wednesday. Bel said that some of the company’s packaging materials sourced locally were bottles, cans, corks and labels, among others. He said that 47 per cent of agricultural raw materials such as sorghum, cassava were now sourced within Nigeria. The managing director said that the company was committed to the 60 per cent direct target of locally sourced raw materials by 2020. On the stable growth of the company in spite of economic headwinds, Bel said that its ability to cut down on operational cost made the company to remain afloat. He said the company deployed cost leadership to fuel the fight for market leadership as well as used it to drive scale for cost leadership. According to him, the sustenance will enable the company to emerge the best cost performing breweries in Africa. Reviewing the beverage industry in 2017 financial year, he said the industry had changed significantly over the last three years. Bel said that with signs of improvements in the economy, 2017 bear market was relatively stable. He said that the company invested about 710,000 Euros in social projects across the country in 2017 financial year. The managing director, however, said that operating environment would remain challenging in 2018, noting that the brewer was well placed with its leadership brands as well as people to weather the storm. Bel said that the company for the financial year ended Dec. 31, 2017 recommended a dividend of N33 billion for its shareholders for the 2017 financial year, a 100 per cent pay-out ratio. He said that the company had given out 100 per cent dividend payout as part of its dividend policy which was consistent with the firm’s robust balance sheet. L-R: Ore Onile-Ere, On Air Personality (OAP), Uchenna Agbo (Co-Founder,Cloud Cover, Afua Osei; Co-Founder, She Leads Africa and Eleanor Potter,Chief Operating Officer, Cloud Cover,at the Women In Business conference which held at Browns cafe, Victoria Island, Lagos Confusion trails NSE’s lifting, reversal of technical suspension The Nigerian Stock Exchange (NSE) on Wednesday lifted the technical suspension placed on Oando shares with the Securities and Exchange Commission (SEC), ordering a reversal three hours later. The News Agency of Nigeria (NAN) reports that confusion trailed the action of the exchange and SEC with market operators and shareholders calling on the Federal Government to intervene in the matter. NAN reports that the exchange, in a letter entitled: “Notification of Lifting of Technical Suspension on the Shares of Oando,’’ said SEC on April 9, directed it to lift the suspension. “We refer to our bulletins of 18, 20 and 23 October, 2017 regarding the directive of the SEC to the Nigerian Stock Exchange to place the shares of Oando Plc on Technical Suspension. “Please be informed that on April 9, 2018, the commission directed the Exchange to lift the technical suspension placed on the shares of Oando. “On receipt of the commission’s directive, the Exchange put the process in place to lift the technical suspension, including testing on its trading system. “Further to the commission’s directive of April 9, please be advised that effective today, April 11, 2018, the Exchange lifted the technical suspension placed on the shares of Oando. “Consequently, there is no longer any impediment to price movement in Oando shares. “The above is for your information and records update please,” said the Exchange. However, three hours after lifting the technical suspension on Oando’s shares, the suspension was reversed by the NSE. All efforts by NAN to get the reasons for the reversal proved abortive as the Corporate Communications Officers of both the NSE and SEC declined to pick their calls or respond to inquiries. Commenting on the issue, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. described both regulators’ actions as unprofessional. Omordion said SEC and NSE needed to correct the impression on time in order not to dampen investors’ confidence. L-R: Iniobong Udoh, Chaplain Victory Chapel, University of Uyo and President, Association of Nigerian University Chaplains, ANUC; Toyin Ogundipe, vice chancellor, University of Lagos; Azuka Ogbolumani, host and chaplain, Chapel of Christ Our Light, University of Lagos; Taiwo Adeniyi, chairman, Chapel Committee, and Taiwo Ipaye, registrar, University of Lagos, at the opening ceremony of the 20th anniversary celebration of the Association of Nigerian University Chaplains in Lagos which held at the Unilag Chapel L-R: Johnson Odesola, assistant general overseer of Redeemed Christian Church Of God, Admin. And Personnel; Ajibola Ponnle, registrar/CEO Of Chartered Institute of Personnel Management of Nigeria (CIPM); Olurotimi Adegborioye, director, Admin and Personnel, RCCG; Chidima Obiejesi, Lagos State Chairperson of CIPM, and Udom Inoyo, president/chairman of Council, CIPM, during the Inauguration of RCCG Personnel Practitional Consultative Association PPCA, @ Redemption Camp.

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