Guinness Nigeria Declares N841.65 Million Decline Profit After Tax in the Quarter Ended September 2020
Guinness Nigeria Plc gross profit declined slightly in the first quarter (Q1) ended September 30, 2020 to N7.01 billion, down from N7.94 billion achieved in the same period of 2019.
In the financial statements released through the Nigerian Stock Exchange (NSE), the company’s revenue rose from N26.89 billion posted in the corresponding period of 2019 to N30.02 billion in the first quarter of 2020. While the cost of sales increased from N18.95 billion in Q1 2019 to N23.01 billion in Q1 2020.
The surge in the cost of sales weighed on the company’s operating profit as it declined from N681.57 million in Q1 2019 to N586.3 million in the period under review.
The company’s net finance cost was negative at -N903.79 million due to N1.37 billion that was spent as finance cost during the period while generating finance income of N462.25 million. Still, this was better than the N1.05 billion posted in the corresponding period.
Profit before tax declined by N841.65 million during the period under review, worst than the N370.4 million decline posted in the corresponding period of 2019.
NGX Index Sheds 0.79 Percent on Thursday
The Nigerian Exchange Limited (NGX) Index dipped by 0.79 percent on Thursday to extend its bearish trend to 38484.82 index points.
Investors traded 259.968 million shares worth N1.982 billion in 4,975 transactions during the trading hours of Thursday, against 237,510,446 shares worth N1.882 billion traded in 4,305 transactions during the trading hours of Wednesday.
Market capitalisation of listed stocks declined by N16 billion from N20.211 trillion recorded on Wednesday to N20.051 trillion on Thursday.
|TRIPPLEG||N 0.90||N 0.99||0.09||10.00 %|
|REGALINS||N 0.41||N 0.45||0.04||9.76 %|
|CHIPLC||N 0.54||N 0.59||0.05||9.26 %|
|PRESTIGE||N 0.45||N 0.49||0.04||8.89 %|
|ACADEMY||N 0.35||N 0.38||0.03||8.57 %|
|OANDO||N 5.26||N 4.75||-0.51||-9.70 %|
|UACN||N 11.20||N 10.20||-1.00||-8.93 %|
|LINKASSURE||N 0.65||N 0.60||-0.05||-7.69 %|
|FTNCOCOA||N 0.53||N 0.49||-0.04||-7.55 %|
|UPDC||N 1.26||N 1.19||-0.07||-5.56 %|
Robinhood Falls in Trading Debut Closes 8.4% Lower at $34.82 Per Share
The investing app tumbled in its highly anticipated trading debut on Thursday, closing 8.4 percent below its initial public offering price.
Robinhood stock opened at $38, matching the IPO price, and quickly fell more than 10 percent. The stock later climbed to approach the IPO price before falling again in the final hour of trading to close at $34.82, Robinhood’s market capitalization was about $29 billion.
It was a disappointing debut for the company that brought the markets to the masses. Robinhood and its bankers tried to avoid a poor first-day performance by pricing shares at the bottom of its targeted range at a value of about $32 billion. A successful first day was the more important because Robinhood sold a big chunk of its shares to its own customers.
According to people familiar with the matter, breaking the Wall Street convention of giving individual investors only a minuscule slice of hot IPOs, Robinhood sold between 20 percent and 25 percent of its offering to its customers.
“One of our company values is ‘participation is power,’” Chief Executive Vlad Tenev said in an interview. “It didn’t seem right for us that IPOs had typically been reserved for the top 1 percent.”
Trading for the first time under the ticker HOOD, the online brokerage hit the public markets it seeks to democratize for amateur investors.
Robinhood, whose stock trading app has surged in popularity among retail investors is valued at 10.5 times forward EBITDA.
The company sold 52.4 million shares, raising close to $2 billion. Co-founders Vlad Tenev and Baiju Bhatt each sold about $50 million worth of stock. The company was last valued in the private markets in September at $11.7 billion.
Goldman Sachs and JPMorgan Chase are the investment banks that led the deal. Underwriters will have an option to buy an additional 5.5 million shares.
Unlike many recent IPOs, Robinhood was profitable last year, generating a net income of $7.45 million on net revenue of $959 million in 2020, versus a loss of $107 million on revenue of $278 million in 2019.
However, the brokerage had a loss of $1.4 billion in the first quarter of 2021 tied to emergency fundraising-related losses during January’s GameStop trading mania. The company generated $522 million in revenue in the quarter, up 309 percent from the $128 million earned a year earlier.
Nigerian Exchange Limited (NGX) Dips Slightly on Wednesday
The Nigerian Exchange Limited closed lower on Wednesday as listed companies started releasing their first half of the year financial results. The Nigerian Exchange Limited dipped by 0.03 percent to 38791.03 index points.
Investors traded 237,510,446 shares worth N1.882 billion in 4,305 transactions during the trading hours of Wednesday. While the market capitalisation of listed equities moderated to N20.211 trillion.
Oando led the most traded stocks with 442.901 million shares valued at N232.963 million. This was followed by bank stocks as shown in the table below.
Capital Hotel Plc led gainers with N0.26 or 9.85 percent to close at N2.90 a unit. This was trailed by Oando as shown in the table below.
|CAPHOTEL||N 2.64||N 2.90||0.26||9.85 %|
|OANDO||N 4.79||N 5.26||0.47||9.81 %|
|BOCGAS||N 8.45||N 9.20||0.75||8.88 %|
|FTNCOCOA||N 0.49||N 0.53||0.04||8.16 %|
|LIVESTOCK||N 2.29||N 2.40||0.11||4.80 %|
|CHIPLC||N 0.60||N 0.54||-0.06||-10.00 %|
|TRIPPLEG||N 1.00||N 0.90||-0.10||-10.00 %|
|PHARMDEKO||N 1.21||N 1.09||-0.12||-9.92 %|
|REGALINS||N 0.44||N 0.41||-0.03||-6.82 %|
|ETERNA||N 7.60||N 7.10||-0.50||-6.58 %|
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