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Highlights of Berger Paints Financial Statements in 2020

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Berger Paints

Berger Paints Nigeria Plc, a leading player in the coating and allied industry, grew revenue by 7.1 percent to N3.84 billion in the financial year ended December 31, 2020, despite COVID-19 disruption. See the complete highlights below.

Highlights of Audited Financial Statements of Berger Paints Nigeria Plc for 2020

2020 financial year ended with a profit of N146 million, see below for further analysis of the result.

  • Revenue increased by 7.1% from N3.58 billion in 2019 to N3.84 billion in 2020 driven by volume growth despite the shutdown in economic activities, disruptions and environmental unrest and the loss of sales for about 7 weeks in the year.
  • Gross profit declined by 15% from N1.66 billion in 2019 to N1.42 billion in 2020 with gross margin of 37%. The decline was largely due to the impact of the COVID-19 pandemic which resulted into a global scarcity of raw materials and consequently a significant rise in raw material prices. Difficulty in sourcing for forex also impacted the cost of inputs significantly.
  • EBIT at N154.05 million representing 62% decline from 2019. This is principally due to the decline in gross profit, increased focus on health and safety in response to the COVID 19 pandemic, recruitment of key management staff and general rise in prices of operational purchases.
  • Net finance income declined 56% due to the shortfall in investment income in the year and impact of the interest rates fluctuations in the year.
  • Profit for the year declined 67% largely on the account of the decline in EBIT and finance income.
  • Free cash flow remained strong at N529 million, representing 34% increase from FY 2019. This shows that the Company remains healthy and is still thriving in the current environment.
  • Earnings per share declined by 68%. However, a proposed dividend of 40 kobo per share for the year demonstrates the company’s unflinching commitment to its promises to the shareholders.

Speaking on the company’s performance in 2020, the Managing Director, Anjan Sircar said: “In spite of the emergence of COVID 19 and other environmental and economic unrest at various times in 2020 in the country which led to the loss of 7 weeks of sales, the performance of BPN for the financial year ended 2020 shows modest revenue growth when compared to the 2019 results. The revenue growth has been largely driven by the strategic focus on the sales of premium products and inclusion of new business partners. This also contributed to the volume growth.

“Just like every other company hit by the impact of the pandemic, we experienced disruptions in oursupply chain presenting difficulties in the purchases of raw materials and resulting in sharp increases of input costs. Furthermore, the challenges in sourcing for foreign exchange and the congestions at our Ports impacted on the Company’s ability to obtain raw materials at advantageous prices.

“However, we have taken steps to reduce similar impact on our business in the future, including undertaking a robust review of our business continuity processes. We have also adopted new business strategies and initiatives for better and improved performance in the 2021 financial year.

“The Company remains strong in its commitment to its shareholders, hence I am pleased to announce that the Board will be recommending to shareholders the payment of 40 kobo per ordinary share to be paid to its shareholders which is 60% higher than the 25 kobo paid in previous year. This is however subject to withholding tax and final approval at the 2021 Annual General Meeting.”

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

UBA Grows Profit by 26.8 Percent to N38.2 Billion in Q1 2021

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UBA

The United Bank for Africa (UBA), one of Africa’s leading financial institutions, reported a 26.8 percent increase in profit after tax from N30.1 billion in the first quarter (Q1) of 2020 to N38.2 billion in the first quarter of 2021.

In the unaudited financial statements released on Monday, UBA grew gross earnings by 5.5 percent to N155.4 billion in Q1 2021, up from N147.2 billion filed in Q1 2020.

The lender leverage on growth in interest income and non-interest income as net interest income grew from 65.417 billion in the corresponding period of 2020 to N74.381 billion in Q1 2021.

Total non-interest income stood at N32.247 billion in the quarter, up from N28.527 billion achieved in Q1 2020.

Similarly, operating income expanded from N93.944 billion in the first quarter of 2020 to N106.648 billion in the first quarter of 2021.

However, operating expenses grew to N64.454 billion in Q1 2020, up from N58.657 billion in Q1 2021.

Profit before income tax rose to N40.581 billion in Q1 2021 from N32.726 billion in Q1 2020.

Speaking on the bank’s performance the Group Managing Director/CEO, UBA Plc, Mr. Kennedy Uzoka, said: “This impressive 2021 Q1 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment. We remain upbeat on the macroeconomic outlook of the countries in which we operate, especially as the COVID-19 vaccine distribution gains traction globally, whilst commodity prices and currencies continue to stabilise. Our robust capital and liquidity positions have positioned us to continue to support our customers across diverse sectors and markets, guided by prudent risk management practices.”

Uzoka also explained the lender’s efforts at executing its priorities for the year 2021, as it continues to leverage people, processes, and technology to deliver the best customer experience across all its channels and touchpoints.

The bank is making strong progress in Nigeria where our continuous market share and efficiency gains are translating into higher profits. We are committed to sustaining this strong start throughout the year, leveraging our customer-First (C-1st) philosophy and unparalleled execution to deliver even stronger returns to our esteemed shareholders in 2021 and beyond;” Uzoka said.

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Banking Sector

GTBank Reports 8 Percent Decline in Profit Before Tax to N53.7 Billion in Q1 2021

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GTBank

Guaranty Trust Bank on Wednesday reported a 7.8 percent decline in profit before tax from N58.2 billion in the first quarter of 2020 to N53.7 billion in the first quarter of 2021.

The lender disclosed in its unaudited results titled ‘GTBank releases Q1 2021 unaudited results’.

Deposit liabilities rose by 3 percent to N3.717 trillion in the first quarter of 2021, up from N3.61 trillion in December 2020. The bank’s loan book declined by 1.4 percent to N1.639 trillion, down from N1.66 trillion posted in December 2020.

Speaking on the financial results, the Managing Director/Chief Executive Officer, Guaranty Trust Bank Plc, Mr Segun Agbaje, said, “We have started off the 2021 financial year on a fair footing, and our first-quarter results demonstrate our ability to continue delivering strong and sustainable returns, despite the macroeconomic uncertainties that persist in our business environment.

“This is a reflection of the resilience of our franchise, our prudent approach to risk management and the efficacy of our digital-first customer-centric business strategy.”

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Banking Sector

Unity Bank Posts N2.09 Billion Profit Despite N4 Billion Revaluation Loss in 2020

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Unity bank

Unity Bank Plc, one of Nigeria’s leading financial institutions, grew profit after tax to N2.09 billion in the financial year ended December 31, 2020.

The lender profit before tax stood at N2.22 billion in the year under review while assets rose by astonishing 67.90 percent from N293.05 billion in 2019 to N492.02 billion in 2020.

In the audited financial statements released on Monday, Unity Bank grew its gross loan portfolio by 92.9 percent from N106.9 billion recorded in December 2019 to N206.2 billion in December 2020.

The almost 100 percent jumped in credit provision highlighted the bank’s strategy at deepening support for farmers, improving food security and enhancing new job creation for thousands of youths and entrepreneurs.

During the bank’s earnings call on Monday, Mr. Kolawole Ebenezer, the Executive Director and Chief Financial Officer, Unity Bank Plc, explained that the bank has been able to cut down on its Non-performing loan to near-zero percent by adopting a strategy that allows the lender to focus on farmers and at the same time implement strategy that mitigates security challenges.

Unity Bank grew its net operating income by 9.71 percent to N25.46 billion in 2020, up from N23.21 billion in the corresponding period of 2019. Similarly, net interest income rose by 7.60 percent to N17.75 billion in 2020 from N16.49 billion in 2019 while earnings per share stood at 17.85 kobo.

In spite of COVID-19 disruption, Unity Bank grew customers’ deposit portfolio by 38.4 percent to N356.62 billion, up from N257.69 billion filed in 2019. This indicates market acceptance of the bank’s product offerings and series of technological integration launched during the year under review to ease banking challenges, especially as the world struggles with the COVID-19 pandemic.

Bismarck J. Rewane, the Managing Director and Chief Executive Officer of Financial Derivatives Company Limited, who spoke during the earnings call on Monday, said Unity Bank is operating like a tier I bank despite its obvious limitations and highlighted the broad-based growth the bank has recorded in recent years.

The economic think tank further explained that if the bank’s N4 billion revaluation loss is added to profit after tax declared, the bank would have declared N6 billion. This does not include the adjustments made by the Central Bank of Nigeria to the interest rate charged on agric loans that eroded interest income on loans by over 30 percent.

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