QUARTER RESULTS: Nestlé Nigeria PLC, Sterling Bank PLC.

NESTLÉ NIGERIA PLC: STRONG START.

The first quarter of the current year turned to be one with very strong foundation that could help Nestle Nigeria end it with very good memories despite the tough times in Nigeria now.
According to figures for the quarter, revenue grew strong enough at 31.1% up to N36130.9m from N27556.4m and better still cost of sale ended up increasing by only 19.4% to N18350.4m.
This resulted in far more healthy 45.9% increase in gross profit to N17780.5m.
But that was just a part of the quarter's baggage of good news.
Oh sure, overhead ended up growing ahead of revenue growth at 33.9% to N8754.9m, but as finance cost decreased by 86.1% to N300.2m from N2159.7m, great leap in profit before tax was inevitable.
The profit recorded was N8725.4m more than double N3487m in 2014.
Management attributed this to the continued strength of its brands at the market place, drop in net finance costs and internal cost control.
Of course, for any business, there can be no better foundation for year end growth in fortune than this provided the hands on continues to be effective.

NESTLÉ NIGERIA PLC: (Nm).
                        First quarter
                        2016.            2015
Revenue.      36130.9.        27556.4
Cost of sale 18350.4.        15369.4
Gross profit. 17780.5.        12187.0
Overheads     9025.6.           5646.6
Finance cost    300.2.         2159.7
Profit b4 tax.  8725.4.        3487.0
Profit margin    24.1.            12.7

STERLING BANK PLC: CUT OUT JOB.

If Sterling bank PLC hopes to end 2016 stronger than it ended trying 2015, then what needs to be done has been cut out by travails in the first quarter.
According to the quarter figures to March, to end the year better, Sterling bank has to work on its non core banking income streams, control non personnel expenses more effectively and also ensure that gains recorded in interest expense and personnel cost control continue.
The bank's interest income had grown by only 4.24% to N20053.4m but this had been boosted by 14.4% drop in interest expense to N8639m.
But this well inflated tyre was deflated by 68.9% dive in Other operating income to N239.4m; 30.5% decrease in net trading income to N1537.2m and 26.6% decline in fee and commission to N3674.8m
To compound matters, impairment provision rose by N1440.3m; Other operating expenses increased by 7.44% to N3052.6m almost in tow with 7.25% increase to N4332.9m.
Amongst overheads, it was only personnel cost that went down by 5.05% to N2828.7m from N2979m.
So, it is even some wonder that Sterling bank ended the quarter with only 30.6% decrease in profit before tax to N2806.7m from N4041.9m.
It is from this level it can now aim to end the year stronger, not weaker than by 2015 year end.

STERLING BANK PLC: (Nm)
                     First quarter
                         2016.            2015
Gross income 23967.6.    27227.3
Interest income 20053.4. 19237.8
Interest cost        8639.0.  10087.6
Fee and Comm.  3674.8.    5007.8
Net trading inc.   1537.2.     2211.4
Other op. Income  239.4.       770.3
Impairment.         1440.3.       933.7
Personnel.            2828.7      2979.0
Other op. Cost      3052.6.    2841.1
Administration     4332.9.     4040.0
Profit b4 tax          2806.7.     4041.9
Profit margin %       11.7.        14.8

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