QUARTER RESULTS (1):

UNILEVER PLC: BETTER 2016?

For Unilever Nigeria PLC it looks like 2016 may be  better than 2015. Or so the unaudited figures for the first quarter to March seem to indicate.
According to the brief released last week, even though Unilever was able to grow both core and total income by about 12.5% each, it ended the quarter with 8.46% profit margin compared to 5.78% at the same time in 2015.
That may not look like too sharp a rise but when it is recalled that Unilever ended 2015 year with only 2.97% profit margin despite the double digit recorded at first quarter, the issue becomes whether later part of 2016 will bite harder than it did in 2015.
It may not although something can be done to reduce growth in selling and distribution costs ( up 24.4% by first quarter); trim cost of administration while ensuring cost of sale and finance cost continue to apply increasingly less pressure.
It was actually the 33.3% drop to N545.7m in finance income that made the quarter and of course, added to only 9.14% rise in cost of sale to N10749.6m.

UNILEVER NIGERIA PLC (Nm) Mar 16.
                    Mar.2016.      Mar 2015
Total Rev.   16839.4.         14971.7
Core Rev.    16782.2.         14911.0
Cost of sale. 10749.6.        9849.2
Distribution.     770.3.           619.2
Admin. etc    3354.5           2872.3
Finance inc.     57.2.               60.7
Finance cost. 545.7.             817.9
Profit b4 tax  1419.3.             864.7
Profit margin % 8.46.              5.78 

ECOBANK: STILL UNDER PRESSURE.

By the end of first quarter in March Ecobank Transnational Incorporated PLC was still under pressure and says, CEO, Mr  Ade Adeyemi, holding on fairly well.
According to the unaudited results released last week, the pressure came from gross earnings that dropped, increased impairment provision and higher operating expenses.
In the end, Ecobank settled for N15.7 gain on each N100 income within the quarter compared to N22.4 previously.
In Naira terms, gross earnings had dropped by 3.56% to N131374.9m while operating profit before impairment provision had gone down by 13.3% to N33892.3m implying that net interest was a drag.
Amidst this, the profit before tax reported came to N20629.8m, down 32.4% on N30519.5m by 2015 first quarter.
In the light of tough operating environment, CEO Adeyemi opined that this was a " reasonable performance " adding " With our revised strategy and a simplified operating model, we aim to be more efficient in running our business and serving  our customers ".

ECOBANK TRANSNATIONAL (Nm)
                   Mar 2016.    Mar 2015
Earnings.   131374.9.    136222.9
B4 Impairment 33892.3  39093.4
Profit b4 tax   20629.8.   30519.5
Profit margin % 15.7.          22.4
Loans.       2200529.4.  2308800.9
Deposits   3152673.8.  3114670.6

TRANSNATIONWIDE EXPRESS: ONE GOOD MOVE

Transnationwide Express PLC ended the first quarter to March 2016 fairly comfortable because of one major good move: It caged administration cost growth to only 2.49% despite double digit  increases all around.
According to the unaudited figures got last week, core revenue grew by 16% to N213.3m followed by 16.8% rise in total income to N215.3m  as income from other sources became a bit more relevant by growing 300% to N2m from a mere N0.5m previously.
The more striking thing about the figures was that Tranex would have ended with bent knees as direct cost rose by 28.7% to N90.2m and finance cost closed  85.7% up at N2.18m but for the restrained increase in administration expenses to N98.7m from N96.3m.
In the end N24.2m profit before tax was recorded, up 44% on the N16.8m reported at the same time in 2015.
Decoded further, it meant N11.2 gain on each N100 income compared to N9.11 by 2015 first quarter that landed the company in N9.46 gain by the year's close.

TRANSNATIONWIDE EXPRESS PLC
                     March 2016 (Nm)
                         2016.            2015
Total income   215.3.           184.4
Core revenue.  213.3.            183.9
Other income.      2.0.               0.50
Administration.  98.7.              96.3
Finance cost.       2.18.              1.17
Profit b4 tax.       24.2.              16.8
Profit margin %   11.2.               9.11

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