Category: Conglomerate

Nestlé S.A invests additional N175.2 million in shares of its Nigerian subsidiary.

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Nestlé S.A, a leading multinational food and beverage company, has invested an additional N175.2 million in shares of its Nigerian Subsidiary (Nestlé Nigeria Plc).

This disclosure was made by Nestlé Nigeria Plc, in a notification issued and signed by the Company’s Secretary, Bode Ayeku.

According to the notice, Nestlé S.A acquired additional 125,513 units of Nestle Nigeria Plc shares at a price of N1, 396 per share. This puts the total consideration for the shares purchased by the parent company at N175, 216,148.

Additionally, it is worthy to note that the recent transaction which took place on the floor of the Nigerian Exchange Limited, were effected in three tranches in the following dates; 4th, 5th and 6th of August, 2021.

Breakdown of the deal

  • In the first tranche which took place on the 4th of August 2021, the parent company purchased additional 43,104 units of its Nigerian subsidiary shares at N1,390.4524 per share, totaling N59,934,060.25
  • Subsequently, the firm purchased an additional 52,704 units of the latter’s share at N1,399.2157 per unit, worth N73,744,264.25
  • In the last tranche which took place on 6th of August 2021, the firm purchased a further 29,705 units of shares at N1, 398.7459, totaling N41, 549,746.96
  • In light of this, a total of 125,513 units of Nestle Nigeria’s share were purchased at an average price of N1,396, totaling N175.2 million.

This recent transaction will further raise the stakes and cement the position of Nestlé S.A as the majority shareholder in its Nigerian subsidiary (Nestlé Nigeria Plc).

What you should know

  • Nestlé S.A is a leading Swiss multinational food and drink processing company and the parent company of Nestlé Nigeria Plc. According to Wikipedia, it is the largest food company in the world, measured by revenue and other metrics, since 2014
  • Nestle Nigeria Plc closed trading for the week ended 6th of August, 2021 with a share price of N1,540 per share.

 

 

Northern Nigeria Flour Mills Plc reports profit of N69.92 million in FY 2020.

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Northern Nigeria Flour Mills Plc released its audited financial results for the year ended 31st of March, 2021.

  • Revenue for the year was N8.67 billion. (-2% YoY)
  • Cost of sales was N7.9 billion. (-1.1% YoY)
  • General and administrative expenses totalled N490.9 million. (-4.1% YoY)
  • Operating profit was N328.29 million. (-41.6% YoY)
  • Profit for the year was N69.92 million. (+8.2% YoY)
  • Earnings per share of 39 kobo Vs 36 kobo YoY.

See link to results.

2020 FY Results: Flour Mills Nigeria Plc reports a 126% increase in profit to N25.72bn.

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Flour Mills Nigeria Plc released its audited financial statements for the year ended 31st of March, 2021.

  • Revenue for the year was N771.61 billion. (+34% YoY)
  • Cost of sales was N664.85 billion. (+31% YoY)
  • Administrative expenses totalled N29.05 billion. (+24.4% YoY)
  • Profit for the year was N25.72 billion. (+126% YoY)
  • Earnings per share of N6.38 Vs N2.25 YoY.
  • A proposed dividend of N1.65 was announced by the board. (+18% YoY)
  • Total shareholders fund was N174.6 billion. (+12% YoY)

See link to results.

Chams Plc completes balance sheet restructuring exercise.

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Chams Plc, a leading integrated identity management, payments system and solutions provider, has announced the successful completion of its balance sheet restructuring exercise.

This is according to a notification issued by the company which reads: ‘’ This is to inform the Nigerian Exchange Limited (The Exchange) and the investing public that following the receipt of regulatory approvals, the Balance Sheet Restructuring exercise by Chams Plc which was approved by a special resolution at the Extra-Ordinary General Meeting of the Company held on April 24, 2018 has been completed.’’

In light of the above, the exercise was executed in the following manner;

  • The Balance Sheet Restructuring Account (“BSRA”) was created for the purpose of effecting all necessary accounting entries in line with statutory requirements
  • The sum of N5,458,750,000 as at October 31,2017 was transferred from the Share Premium as a credit to the BSRA
  • The negative balance of N5,458,750,000 as at 31st October 2017 was transferred from the Retained Earnings Account to the BSRA
  • The Solicitors to the Balance Sheet Restructuring sought an order or orders to the following effect from the court
  • An order of the Court confirming the above stated Balance Sheet Restructuring of Chams Plc was approved by Special resolution of its shareholders
  • All incidental, consequential and supplemental orders as are necessary to ensure that the Balance Sheet Restructuring were fully and effectively implemented
  • The Directors of the Company were authorized to take all actions that were within their powers and/or necessary to effect the Balance Sheet Restructuring.

What you should know:

  • A balance sheet restructuring refers to the sort of multiparty agreement that takes place when equity and debt holders of a firm agree to concessions that will make the balance sheet stronger.
  • It is pertinent to note that the decision to restructure the balance sheet of Chams Plc was taken at the Extraordinary General Meeting of the shareholders which held on 24th of April, 2018 at ACE-Olivia Hall, City Mall, Onikan-Lagos.

 

 Notore Chemicals Industries Plc reports a loss of N6.4 billion in FY 2020.

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Notore Chemicals Industries Plc released its audited full-year results for the period ended 30th September 2020.

  • Revenue for the period was N18.8 billion.(-12% YoY)
  • Cost of sales was N21.7 billion. (+24% YoY)
  • Administrative expenses totalled N5.9 billion.(-10.4% YoY)
  • Operating profit was N9.49 billion. (+177% YoY)
  • Loss for the year was N6.4 billion.
  • Loss per share of -N3.97 Vs -N3.57 YoY.

Commenting on why the firm recorded a massive loss despite a surge in its operating profit, the Chairman of Notore Chemical Industries Plc, General Yakubu Gowon said: ‘’ Our operating profit in the financial year increased by 177% from ₦3.42 billion in FYE 2019 to ₦9.48 billion in FYE 2020. Despite the positive operating profit, we recorded a loss for the year of ₦6.39 billion during the period (FYE 2019: ₦5.75 billion). This was due to the offsets caused by Finance Cost— which rose from ₦13.69 billion in FY 2019 to ₦23.40 billion in FY 2020—and an Exchange loss on US dollar-denominated loans of ₦7.72 billion as a result of the CBN’s devaluation of the Naira from ₦306/$ to ₦380/$ during the period.’’

See link to results.

CAP Plc appoints Yomi Adenson as new Chief Financial Officer.

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The Board of Directors of Chemical and Allied Products Plc, has announced the appointment of Mr. Yomi Adenson as the new Group Chief Financial Officer of the company effective from 1st of June, 2021.

This is according to a disclosure signed by the company’s secretary, Ayomipo Wey and sent to the Nigerian Exchange Group Plc (NGX Group).

As part of his responsibilities, Yomi will support the Board in driving the Group’s strategic vision and harnessing greater wealth building opportunities for shareholders.

Profile

Yomi is a Chartered Accountant with over 15 years of professional experience and technical competence in treasury management, financial control, process improvement, financial planning, tax and regulatory compliance, among others.  Prior to joining CAP Plc, he worked with Promasidoe Nigeria Limited as a Senior Manager/General Manager, Finance. He also worked in reputable brands like May and Baker Plc and Dunlop Nigeria Plc.

Yomi has a master’s degree in Finance and a certificate in Leadership programme from the prestigious Manchester Business School.  He is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), and a serving board member of the Taxation and Fiscal Committee of ICAN.

What you should know:

  • Chemical and Allied Products Plc is a subsidiary of UAC of Nigeria Plc. It specializes in the manufacturing and distribution of paints, personal and household products, crop protection and public health products. It also provides decorating and renovation services.

See link to the recent announcement.

Japaul Gold and Ventures Plc reports loss of N996.7 million in FY 2020

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Japaul Gold and Ventures Plc released its full-year audited financial statements for the year ended 31st December, 2020.

  • Revenue for the period was N689.6 million. (-4.94% YoY)
  • Administrative expenses totalled N1.12 billion. (+75.95% YoY)
  • An operating loss of N826.44 million was incurred during the period.
  • Loss from continuing operations was N996.7 million. (-102.4% YoY)
  • Loss from discontinued operations was N1.18 billion.
  • Loss per share of -19 kobo. (-102.91% YoY)
  • No dividend announcement was made.

See link to results.

2020 FY Results: UPDC Real Estate Investment Trust records over 500% growth in Profit after tax.

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UPDC Real Estate Investment Trust released its audited full-year results for the period ended 31st of December, 2020.

  • Total revenue for the period was N2.42 billion. (+2,279% YoY)
  • Rental Income was N1.5 7 billion. (-7.1% YoY)
  • Operating expenses totalled N480.5 million. (-11.5% YoY)
  • Profit after tax was N1.93 billion. (+530.1% YoY)
  • Earnings per unit of 72 kobo. (+523.5% YoY)

See link to results.

Transcorp Plc profit surges exponentially by over 2,000% to N2.04 billion in Q1 2021.

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Transnational Corporation of Nigeria Plc released its unaudited results for the first quarter of the year (Q1, 2021).

  • Revenue for the period was N24.4 billion. (+58.8% YoY)
  • Cost of sales was N14.01 billion. (+38.3% YoY)
  • Administrative expenses totalled N3.7 billion. (+9.4% YoY)
  • Operating profit of N6.9 billion. (+67.3% YoY)
  • Profit for the period was N2.04 billion. (+2,426.5% YoY)
  • Earnings per share of N0.018. (+244.4% YoY)

See link to results.

Transcorp Group Plc announces appointment of 4 executives across the group.

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The Board of Transnational Corporation of Nigeria Plc (Transcorp) has announced the appointment of 4 key executives across the group, effective 22nd April 2021.

This is according to a disclosure signed by the company’s secretary, Chike Anikwe and published on the website of the Nigerian Stock Exchange (NSE). According to the press release, the new appointments cut across Transcorp Plc Group and its subsidiaries, Trans-Afam Power Limited and Transcorp Energy Limited.

Appointed Executives

Mr Victor Famuyibo will be joining the firm’s Board of Directors effective from the aforementioned date. Prior to joining the Board, Mr Famuyibo gained valuable experience with some multinational companies such as UAC Nigeria, Heineken and the Nigerian Breweries. He retired from the Nigerian Breweries as a Director of Human Resources and a member of the Board after 32 years of service.

Mallam Ahmadu Hamman Sambo was also appointed into the Board of Transcorp as a Director. He is a veteran with over three decades of experience spanning across private and public sectors in Nigeria. He served in various leadership capacities, occupying esteemed positions in public service, such as the Managing Director of NNPC Oilfield Services Limited, NIDAS Marine Limited and NNPC Pension Fund Limited among others.

Engr Vicent Ozoude was appointed as the MD/CEO of Trans-Afam Power Limited. Prior to joining the Transcorp Group, he was a Sales Director at General Electric Inc- Sub Saharan Africa. Engr Ozoude has over 20 years of experience in the power generation services sector.

Peter Ikenga was appointed as the MD/CEO of Transcorp Energy to lead the conglomerate integrated energy strategy with focus on gas, renewables and alternative energy. Prior to his appointment, he was a Refining Director for an indigenous oil and gas operator.

What Transcorp Plc is saying:

While commenting on the appointments, Mr Tony Elumelu, Chairman, Transcorp Group Plc, said: “Transcorp has made a succession of important recent business acquisitions, consolidating our position in the power, oil and gas sectors, demonstrating our commitment to Nigeria’s economy and the rapid advance in our integrated power strategy. We are delighted to complement these with further investment in human capital. These announcements illustrate the depth, diversity and quality of experience of our leaders, both executive and non-executive. Our Board and management team, led by the President/Group CEO, Mrs. Owen Omogiafo, are further capacitised to deliver our vision. Mr. Famuyibo, with his considerable experience in human resources, will be invaluable in working with management to deliver cutting edge employee management practices. Mallam Sambo brings crucial knowledge of the energy sector, further accelerating our integrated energy strategy”.

Transnational Corporation of Nigeria Plc is a public quoted conglomerate, with a diversified shareholder base of over 300,000. Some of its portfolio includes; Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power Ltd, Trans-Afam Power Ltd, Transcorp Energy and Aura by Transcorp Hotels.