- Survey Shows Sustained Rise in Consumer Confidence
The NOI Polls has put the level of its Consumer Confidence Index (CCI) for second quarter 2017 at 64.8-points.
This represented an increase of 2.1-points when compared with 62.7-points obtained in the first quarter of 2017.
The Consumer Confidence Index reveals consumers’ tendencies to spend, which is directly proportional to their expectations for a general improvement in the country’s economic conditions, employment opportunities, personal financial strength and stability in the prices of goods and services.
According to the survey, the slight leap in the confidence of consumers in Nigeria could have influenced their propensity to purchase with a degree of optimism about the overall state of the economy.
This optimism could be linked to some improvements in policies in recent times which have propelled the nation’s economy into the path of recovery in Q2, 2017, although, in a slow pace.
Some of the policies include improvement in foreign exchange, Ease of Doing Business, the Executive Orders, amongst others according to The Business Confidence Monitor (BCM) that was released recently by the Nigerian Economic Summit Group (NESG) recently.
In addition, the report showed that there were two variables that make up the CCI- the Present Situation Index (PSI) and the Expectation Index (EI).
The PSI and the EI both experienced an increase of 3.8-points and 0.9-point respectively when compared to the result obtained in Q1, 2017.
In February 2014, NOI Polls introduced its portfolio of indices; the NOIPolls Personal Well-Being Index (PWBI), the NOIPolls Consumer Confidence Index (CCI) and the NOIPolls Eagle 30 Business Confidence Index (EBCI).
Nigerian businesses, financial and government agencies largely depend on their perceptions and micro assessment of consumers’ expectation in making decisions. At best, they draw conclusions on the business environment based on information from their immediate surroundings while the minorities conduct surveys that are time and money consuming. However, the introduction of these indices provides indicators that will ensure stakeholders can detect and respond to changes in consumer behaviour, the economy, and the business environment in Nigeria.
Furthermore, the NOI Polls’ Current Economic Situation Index increased from 39.5-points in Q1, 2017 to 42.2-points in Q2, 2017. Although this index experienced an increase of 2.7-points, it still indicates that consumers are somewhat not satisfied with the country’s Current Economic Situation.
“The Expectation of the Country’s Economic situation index is one of the highest indices and it increased by 0.9-point from 93.5-points obtained in Q1, 2017 to stand at 94.4-points. This portrays a high optimism about the improvement in the country’s economic situation.
“The Current Employment Condition improved from the average (50-points) position in Q1, 2017 to stand at 53.4-points in Q2, 2017 representing a significant 3.4-points increase.
“The Expected Employment Condition Index remained the same (98.4-points) as the result obtained in Q1, 2017, signifying that Nigerians are still optimistic in terms of their expected employment condition,” it added.
In addition, it showed that the Current Prices of Goods and Services Index experienced the highest increase of 5.3-points in this quarter to stand at 18.8-points from 13.5-points recorded in Q1, 2017. Though, it remained the lowest index, the increase observed in Q2, 2017 revealed negativity in the country’s market developments, meaning that prices of goods and services are increasing.
Also, the Expectation of Prices of Goods and Services Index increased by 3.6-points from 76-points in Q1, 2017 to stand at 79.6-points in Q2, 2017 and this shows that consumers are optimistic that there will be a reduction in prices of the goods and services in the future.
The Expected Total Family Income Index was the only variable that experienced a decline of 0.8-point to stand at 67.1-points. This assumes that consumers are, to some degree, skeptical about their expected total family income which is capable of weakening the spending powers of consumers.
BUA Cement Announces 24.6 Percent Increase in Profit to N43.4 Billion in H1 2021
BUA Cement Plc, Nigeria’s second-largest cement manufacturing company, on Thursday reported a 22.7 percent increase in revenue in the six months ended June 30, 2021.
Revenue rose from N101.261 billion recorded in the first half (H1) of 2020 to N124.278 billion in the first half of 2021.
The company disclosed in its unaudited financial statements release through the Nigerian Exchange Limited and seen by Investors King.
As expected, the cost of sales inched higher by 19.1 percent from N55.539 billion in H1 2020 to N66.158 billion in H1 2021. While gross profit expanded by 27.1 percent to N58.120 billion in H1, up from N45.723 billion.
The cement manufacturing company grew other income by 52.3 percent from N47.653 billion filed in H1 2020 to N72.6 billion in H1 2021.
Administrative expenses rose to N4.17 billion in the period under review, representing an increase of 57.9 percent when compared to N2.643 billion recorded in H1 2020.
Operating profit increased by 23.8 percent from N40.809 billion in the corresponding period of 2020 to N50.524 billion in the period under review.
Profit before income taxes rose by 26.9 percent to N49.700 billion in H1 2021 from N39.165 billion in H1 2020.
The company paid N6.3 billion in income tax in the first half of 2021.
Therefore, profit after tax stood at N43.396 billion in the first six months of 2021, an increase of 24.6 percent when compared to N34.819 billion achieved in the same period of 2020.
Seplat Energy Appoints Dr. Emma FitzGerald as an Independent Non-Executive Director
Seplat Energy Plc has appointed Dr. Emma FitzGerald as an Independent Non-Executive Director of the Company, the company disclosed on Thursday.
Dr. FitzGerald will replace Lord Mark Malloch-Brown who retired from the Board of the Company on 1st August 2021.
Dr. Emma FitzGerald Profile
Dr. FitzGerald is a seasoned executive in Energy & Water, with hands-on experience in transformation through her many years of working at Shell, ranging from building its lubricants business in China to running its Global Retail network.
From 2007-2010, she was accountable for Shell’s Downstream strategy and played a key role in reshaping Shell’s renewables strategy including the creation of Raizen, a game changing biofuels JV with Cosan. From 2013 to 2018 she ran gas distribution and water & waste networks for National Grid and Severn Trent where she successfully
positioned them as sustainability thought leaders in their Industries.
Most recently Dr. FitzGerald served as CEO of Puma Energy International, a global energy company owned by Trafigura and Sonangol, which is focused on high potential developing markets in Africa, Asia and Central America. In 2020 she set up Puma’s Future Energies division to play a critical role in helping customers and communities find the right energy solutions to support the energy transition. Over the last 10 years she has served on various Boards in executive and non-executive capacities and currently sits on the board of UPM Kymmene, an international paper & biomaterials business focused on innovating for a future beyond fossil fuels.
Commenting on the appointment, Dr. A. B. C. Orjiako, Chairman of SEPLAT Energy said: “The Board of SEPLAT Energy is indeed delighted to have Dr. Emma Fitzgerald on board as she brings vast knowledge in important areas such as the energy sector, renewables and sustainability. SEPLAT Energy has a great future ahead and looks forward to the enormous contribution she will make towards its continuing global success.”
Robinhood IPO Priced at Lower End of Range, Firm Valued at $32B
Stock and crypto-trading app Robinhood has secured a $32 billion valuation via its initial public offering (IPO) and is set to debut on the Nasdaq exchange on Thursday.
According to a press release on Wednesday, Robinhood has priced its offering at $38 per Class A common stock share.
The pricing is at the lower end of the $38-$42 per share price range the company had targeted and had planned on selling 5.5 million shares targeting a $1.89 billion raise.
Net proceeds from the sale will go toward working capital, capital expenditures, funding tax obligations, hiring efforts, customer support services, among others.
Shares will be listed on the Nasdaq Global Select Market on Thursday, according to the release.
Earlier this month, Robinhood began unconventionally offering a portion of its IPO to users via its app — a view some consider to be a risky gamble.
Known for its zero-fee trading structure, the company has continued to endure hits to its image as well as legal and political ramifications stemming from the fallout of the GameStop saga and limitations to users trading crypto.
The company is trying to reshape that image and is reportedly working on a new feature that will help protect users from crypto price volatility while hiring a former Google alumn to improve its overall product design.
“Robinhood intends to use the net proceeds for working capital, capital expenditures, funding its anticipated tax obligations related to the settlement of RSUs, and general corporate purposes including increasing its hiring efforts to expand its employee base, expanding its customer support operations and satisfying its general capital needs,” the firm said in the announcement.
Robinhood filed the public offering prospectus on July 1, noting at the time that 17 percent of its total revenue in Q1 came from crypto trading transaction fees, which represented a big jump from the 4 percent in Q4 2020.
“While we currently support a portfolio of seven cryptocurrencies for trading, for the three months ended March 31, 2021, 34 percent of our cryptocurrency transaction-based revenue was attributable to transactions in Dogecoin, as compared to 4 percent for the three months ended December 31, 2020,” the firm said in the initial filing.
Still, the company’s CEO Vlad Tenev is staring down allegations from the Financial Industry Regulatory Authority over his failure to register Robinhood Financial relating to compliance issues.
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