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BUA Cement Grows Revenue By 47.5% to N175.52bn in 2019

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  • BUA Cement Grows Revenue By 47.5% to N175.52bn in 2019

BUA Cement on Wednesday announced a 47.5 percent increase in revenue for the 2019 financial year.

In the Financial Statements released through the Nigerian Stock Exchange (NSE), the company’s revenue rose to N175.52 billion in the year while profits for the year rose by 69.1 percent from N39.17 billion filed in 2018 to N66.24 billion in 2019.

The second-largest cement company in Nigeria has a market capitalisation of N1.18 trillion or $3.3 billion, making it the third most capitalised company on the Nigerian Stock Exchange.

Financial Highlights

  • Revenue increases by 47.5% from N01 billion in 2018 to N175.52 billion in 2019
  • EBITDA rises 47.2% from N70 billion in 2018 to N81.99 billion in 2019
  • EBITDA margin flat at 47.0%, arising from entry into ‘new markets’
  • Operating margin (EBIT) is up 4.71% points from 36.0% in 2018 to 40.7% in 2019
  • Profit before Tax (PBT), up 69.1% from N17 billion in 2018 to N66.24 billion in 2019
  • Profit after Tax (PAT), down 5.40% from N07 billion in 2018 to N60.61 billion in 2019, due to a tax credit of N26.76 billion in 2018 from pioneer status incentive( 3 years) granted on Obu line-1 in 2019, reversing previous tax provision for the years

Operational Highlights

  • Cement volume dispatched was up 53.2% from 2,940 kt in 2018 to 4,501 kt, as at 2019; arising from increased capacity
  • Merger between CCNN Plc and Obu Cement Company Limited, yielding revenue and cost synergies
  • Kalambaina plant, Sokoto State (Line 2) goes online for first full year in 2019; Obu Cement Plant, Edo State (Line 2) commissioned in March 2019
  • Return on Asset (ROA) up from 16.7% (2018) to 17.7% (2019)
  • Entry into new markets aided by value-oriented strategy

Speaking on the result, Managing Director of BUA Cement, Yusuf Binji said, “Through the adoption of a focused and disciplined approach, we continue to record strong revenue growth, even as we derive revenue and cost synergies from the merger across: pricing, scale and operational efficiencies; all supported by a sustainable business model and a value-oriented strategy, which have translated to growing market acceptance and is reflective in our margins. This is Despite the complexities and uncertainty that trailed the economic environment in 2019. We delivered on important strategic priorities, such as: the commissioning of our 3mmtpa Line-2 at our Obu Plant in March, 2019; the merger completion between CCNN Plc and Obu Cement Company Limited and commenced the listing process of BUA Cement Plc, the resultant entity of the merger on the floor of the Nigeria Stock Exchange (NSE), with the eventual delisting of CCNN Plc.

 “Going forward, our focus is to further harness the full benefits of the merger while making further in-roads to “new markets” both locally and outside Nigeria. We understand that the local and indeed the global economy would experience more uncertainties, yet we expect continued strong showing across the business, spurred-on by continued recovery across the global economy.

In his comments Acting CFO, Chike Ajaero said, “In 2019 we reported a decline in Profit after Tax (PAT) from N64.07 billion in 2018 to N60.61 billion which was due to income tax credit of N26.76 billion in 2018 from reversal of previous tax provision made on Obu Line 1 and deferred tax credit on securing approval for tax exemptions under pioneer status incentive in 2019. Net deferred tax charge of N5.15 billion was provided for in the current year and actual tax payable of N475.29 million. Obu Line-1 and Kalambaina Line -2 are both on pioneer status approved in February 2020 for 2-years (extension) and 3-years respectively. The computation of Earnings per Share (EPS) for 2018 has been re-stated, to reflect a business combination under common control, as at January 2018”.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Ecobank Posts $352 Million Pre-tax Profit in Nine Months Ended September 2021

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Ecobank - Investors King

Ecobank Group, one of Africa’s leading financial institutions, posted strong revenue growth in the nine months ended September 2021. Net revenue grew by 4 percent or $52 million to $1.3 billion on the back of funded income, cash management, trade finance, mobile and online payments.

The lender disclosed in its audited financial statement obtained by Investors King on Monday.

Return on assets and tangible equity also improved by 1.3 percent and 17.9 percent, respectively, compared with 1.0 percent and 14.1 percent recorded in the nine months ended September 2020.

Strong revenue growth was recorded in the bank’s payments business, rising by 34 percent to $140 million or 11 percent of the Group’s total revenue.  Ecobank Group grew profit before tax to $352 million in the period under review.

Profit available to ETI shareholders grew by $215 million year-on-year to $182 million from -$32 million recorded in the corresponding period of 2020. Customer deposits increased by $1.5 billion or 9 percent year on year to $18.9 billion, attributed to client relationships, partnerships, and increasing consumption of our digital platforms.

Customer loans increased by $334 million or 4 percent year on year to $8.9 billion. While the bank’s Non-Performing Loan (NPL) ratio reduced further to 6.9 percent from 7.6 percent in the fourth quarter of 2020 and 9.9 percent in the third (3Q) 20.

Book value per share up 8 percent year-on-year to 6.04 cents, and tangible book value per share (TBVPS) up 11 percent to 5.52 cents.

Commenting on the company’s performance, Ade Ayeyemi, Ecobank Group CEO, said: “We reported strong results, reflecting the continued diligence of Ecobankers in putting our customers first and ensuring that we meet their respective needs. For the nine months period up to September 2021, we earned $352 million in pre-tax profit, a 41% increase compared to the prior year and revenues of $1.3 billion, a 4% growth. Hence return on tangible equity increased to 17.9%, and we grew the per-share value of our shareholders’ equity by 11% to 5.52 US dollar cents.

“These results also demonstrate the hard work invested in driving efficiency in all our businesses in line with our deliberate focus on driving down our cost-toserve, sustain improvement in the quality of our credit portfolio, and strengthen liquidity and capital buffers. As a result, our cost-to-income ratio has been declining consistently quarter on quarter, currently 58.3%. In addition, the stock of nonperforming loans as a percentage of loans outstanding is now at 6.9% compared to 9.9% a year ago. At the same time, we are proactively building loan reserves, currently at 91.2% of nonperforming loans, close to our near-term target of 100%.

“We have boosted the firm’s liquidity profile, thanks to growing customer deposits fueled by an acceleration in digital channel adoption, partnerships with Fintechs, Telcos, and businesses in the Payments Ecosystem,” Ayeyemi added.

“During the quarter, Arise B.V., a major institutional shareholder of ETI made a $75 million Additional Tier 1 (AT1) investment in the firm. Adding onto the $350 million Tier 2 Sustainability Note ETI successfully issued to investors in June. The AT1 further improves our Tier 1 capital and double leverage ratio and demonstrates stakeholder confidence in our strategy and business prospects,” Ayeyemi continued.

“Finally, we continue to invest in new digital and mobile capabilities to enhance customer experience, alongside the investments we are making in our people, processes, and controls, to ensure the continued resilience of our business and service delivery to our clients. I am deeply grateful to all our customers and the Ecobank team for the remarkable job.” Ayeyemi concluded.

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Banking Sector

Zenith Bank GMD, Onyeagwu Emerges “CEO of the Year” as Zenith Bank Wins ‘Most Responsible Organisation in Africa’ at SERAS CSR Africa Awards 2021

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Ebenezer Onyeagwu - Investors King

Zenith Bank’s Group Managing Director/CEO, Mr. Ebenezer Onyeagwu, has emerged CEO of the Year for a second consecutive year at the Sustainability, Enterprise and Responsibility (SERAS) CSR Africa Awards held at the weekend in Lagos.

According to the judges, he was selected for a number of reasons, including engendering a culture that promotes the continued investment in social initiatives in support of the United Nations Sustainable Development Goals (SDGs). Under his leadership, the Zenith Bank’s social investments totalled NGN3.285 billion in 2020, representing nearly 2% of the Bank’s profit after tax.

The judges found him worthy for his commitment to promoting sustainability and responsible business practices in Nigeria, by his frontal leadership of sustainability in Zenith Bank, thereby enabling best industry practices in the banking sector, and for his passion for reducing carbon emissions in the Bank’s operations.

Zenith Bank Plc also emerged winner in four other categories at the SERAS CSR Africa Awards, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa”.

Zenith Bank was adjudged the Most Responsible Organisation in Africa, winning the overall best sustainability award, for its continued commitment to the tenets of Sustainability and Corporate Social Responsibility, within its immediate community and in the society at large.

The Bank also emerged as the winner in the category for Reporting and Transparency for its consistency in disclosing and communicating its sustainability journey and progress annually vis-a-vis environmental, social, and governance (ESG) goals, in line with the guidelines and protocols set by the Global Reporting Initiative (GRI), Nigeria Sustainable Banking Principles (NSBP), NigerianExchange (NGX), United Nations Global Compact (UNGC), and United Nations Environment Programme Finance Initiative (UNEP FI). The Bank also ensures the assurance of its sustainability report by reputable independent third parties. In 2021, the Bank’s 2020 sustainability report was assured by PricewaterhouseCoopers (PwC) and disseminated through the Bank’s website for the public and sent to all relevant stakeholders, including the United Nations Global Compact (UNGC).

In the infrastructure development category, the Bank was voted winner for its nation-building initiatives and investments, including supporting efforts towards establishing basic services and functional security, governance, and economic and infrastructure systems, especially in Nigeria. As a testament to this and in demonstration of its commitment to the development (often referred to as reform, restructuring and rebuilding) of the Nigeria Police Force for the preservation of law and order, protection of life and property, and law enforcement in Nigeria, the Bank supported the Lagos State Security Trust Fund with N500,000,000.00 for the provision of security-enhancing facilities and infrastructure. This is in addition to contributions to other state security trust funds.

Zenith Bank was adjudged winner in the category for the Best Company in Promotion of Gender Equality and Women Empowerment for its Z-Woman initiative, which offers credit facilities to women-owned businesses at a single-digit interest rate and for a gender-balanced workforce (Women make up about 50% of employees). During the reporting period, the number of women and women enterprises supported by the Bank, through the Z-Woman initiative, grew by 88.7%, from 391 in 2019 to 738 in 2020.

The Sustainability, Enterprise and Responsibility Awards (SERAS) is an initiative of TruCSR which celebrates and promotes investments by corporate organisations in the society through CSR and sustainability initiatives. It made its debut in 2007, and participation was opened to other countries of Africa in 2016.

The 2021 awards featured 387 projects by 97 organisations across Africa. The SERAS Jury Board consists of global thought and best-practices leaders from around the world such as Maria Sillanpaa (Finland); Nyasha Gwatidzo (Zimbabwe); Adesuwa Onyenokwe (Nigeria); Amjed Achour (Morocco); Charles Ojei (Nigeria); Ellen Gunning (Ireland); Gina Din-Kariuki (Kenya); Indira Kartallozi (England); Lampe Omoyele (Nigeria); Paul Kapelus (South Africa); and Scott Walker (England).

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Banking Sector

Having a FirstBank Salary Account Can Ease Your Money Problems, Find Out How…

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FirstBank Headquarter - Investors King

“There is always a lot to spend money on, and sometimes the bills can’t wait for the salary to be paid” Tope complained when his wife informed him that they had run out of cooking gas and had to refill.

He had just moved to a new location with his family and the bills seemed to be coming at such speed that he could hardly keep up. Barely three weeks in the new apartment, the electricity bill had arrived.  The new apartment was bigger than the last and their two double-seater cushions left too much space vacant in the seating room. They needed to get a couple more pieces of furniture to fill the space. His wife had not stopped reminding him of the car he promised to get, in order to ease mobility for the family.

Everyone has been a Tope at some point in time, and that is why everyone needs a financial partner like FirstBank, Nigeria’s premier and leading financial services brand. FirstBank offers a variety of loan products that can help you ease off the pressure as you work towards meeting pressing and urgent needs, as well as medium-term goals.

FirstAdvance is a digital product tailored for Salary Account holders, who have an urgent cash need and would want to access salary advances from the bank.  If you have held a salary account with FirstBank for up to two months, you can access 50% of your monthly net salary and as much as half a million naira (N500,000).

A physical visit to the bank branch is not required as you can access it via the FirstMobile (FirstBank’s Mobile banking app) and USSD channels. To access the service via USSD, dial *894*11# from the phone number linked with your FirstBank account. This has proved to be the solution for many people while emergencies arise before payday. There is no point in waiting for month-end before you can take on those pressing financial obligations.

FirstCredit is another digital product designed to cater for non-salaried individuals. All that is required is for your account to have been active and transacting in FirstBank for six months or more to access FirstCredit. It provides customers with quick and easy access to loans to fund urgent transactions. You do not need a smartphone or a physical visit to the bank to get this done as well. This credit facility can be accessed using a mobile phone and the USSD banking code, *894*11#. You can access as much as N300,000 to be repaid within 30 days.

No physical documentation or collateral is required, neither do you need a physical visit to the bank to access both loans.  Imagine the confidence that comes with sorting out your bills within minutes and without having to wait till month-end.

Salary accounts should do more than receive your monthly payments from your employer. It should be instrumental in making your day-to-day living easier, and this is what having your salary account with FirstBank can achieve for you. You can get a Personal Loan Against Salary (PLAS) if you have a longer-term project at hand or investments to make. It may be paying school fees for your kids, acquiring assets or renovating your properties, paying rent, taking professional examinations. Customers who qualify can access Up to N50 million based on their net monthly income and rates are competitive while offering long-term and flexible repayments up to 48 months tenor.

Despite all these benefits and ease in access to loans, it literarily costs nothing to open a FirstBank Salary Account.  Zero opening balance, Zero minimum daily operating balance, Zero account maintenance charge, plus you even get your first debit card issued for free.

Truly, it is always “YOU FIRST” from FirstBank.

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