UAC of Nigeria Plc reported a shocking 257.6 percent increase in profit for the six months ended 30 June 2021.
In the company’s unaudited financial statements, revenue surged by 27 percent from N46.63 billion recorded in the first half (H1) of 2020 to N46.45 billion in the first half of 2021.
Gross profit also increased by 19 percent to N8.3 billion, up from N6.9 billion filed in the same period of 2020. See the details below.
UAC of Nigeria Plc Financial Highlights
• Revenue 27% ahead of H1 2020 at ₦46.5 billion, driven by sales growth across all business segments.
• Gross profit 19% higher than H1 2020 at ₦8.3 billion; Gross margin 119 bps lower due to rising raw material costs
and supply chain disruptions, particularly in the Paints segment, limiting ability to meet demand.
• Operating profit 105% higher at ₦1.7 billion, supported by revenue growth.
• Profit after tax from continuing operations was ₦765 million, up 258% from ₦214 million in H1 2020.
• Earnings per share from continuing operations was 5 kobo, an improvement from 7 kobo loss per share in H1 2020.
• In H1 2020, UAC recorded ₦944 million profit from discontinued operations which impacts year on year comparison.
• Subsidiary company highlights
– Completed merger of Chemical and Allied Products PLC and Portland Paints and Products Nigeria PLC.
• Proposed corporate actions
– Received preliminary regulatory approval to unbundle 649 million UPDC REIT units, valued at ₦ 3.7 billion as at
30 June 2021, to UAC shareholders.
Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “We are gaining traction in our focus on growth. Higher sales across all our operating platforms translated to 27% revenue growth year on year. Price increases and operational efficiency offset input cost escalation resulting in 105% increase in operating profit. Profit before tax is 25% higher year on year. Net income was negatively impacted by losses from UPDC PLC and MDS Logistics Limited and we are working with our partners to restore these companies to profitability.”
Ford Motor’s India Head Anurag Mehrotra Quits After Ford Stop Manufacturing Cars in India
Ford Motor’s India head Anurag Mehrotra has quit the company to pursue other career opportunities, days after the United States’automaker said it would stop making cars in the Asian nation, taking a hit of $2 billion.
Mehrotra, according to his LinkedIn profile, has spent over a decade with Ford in India across multiple roles, including marketing, sales and most recently as president and managing director.
September 30 will be Mehrotra’s last day, a source with knowledge of the information told Reuters.
Mehrotra did not immediately respond to a request for comment.
Ford India said in its statement it has put its director of manufacturing, Balasundaram Radhakrishnan, in charge of overseeing its restructuring in the country.
Ford’s decision to stop making cars in India ends its more than two-decade long presence in a market it no longer sees as profitable. The move will affect around 4,000 employees, the company has said.
Ford is the fifth major automaker to cease vehicle manufacturing in India since 2017, following exits by General Motors and Harley Davidson from a market that is dominated by Asian rivals.
Despite being in India since the mid-1990s, Ford has less than two per cent share of the passenger vehicle market and was using about 20 per cent of its total production capacity of 440,000 cars a year across two plants.
Ford said earlier this month it plans to wind down production at its western India plant by the end of this year and at its southern India plant by the second quarter of next year.
Theannouncement has upset hundreds of its factory workers, some of whom protested the decision this week.
Africa Capitalworks Invests in Leading Nigerian Engineering Services Provider Dorman Long
Africa Capitalworks (“ACW”), a Sub-Saharan Africa-focused private equity company, announces a significant equity investment in Dorman Long Engineering Limited (“DLE”) of Nigeria.
DLE is an indigenous and market leading company, providing high value engineering services, fabrication, asset management and galvanising services to a range of high quality international and domestic customers. DLE operates three manufacturing facilities in the Lagos area, one at its head office at Idi-Oro, the galvanising plant in Agege and the waterfront facility at Navy Dockyard. The company employs over 400 people.
DLE has successfully executed major engineering services works, including onshore flow stations and major structural fabrication and erection, amongst others, for almost all oil majors and energy services companies operating in Nigeria, including Shell, Mobil, Addax, Agip, NLNG, Chevron, Saipem, Daewoo, Dangote Group, Nigerian Navy, American Towers Company and JC Decaux. ACW’s investment will allow DLE to expand existing yards, acquire additional facilities and expand its service offering.
Nana Sao, Managing Partner of ACW, said: “We look forward to partnering with the DLE team to support its next phase of growth. DLE has built a strong reputation over 70 years of operating in Nigeria and its manufacturing facilities have internationally-recognised quality and product certifications. We are thrilled to support DLE’s accomplished management team in this dynamic sector.”
“This investment marks the start of a new journey for Dorman Long, and I am delighted in the vote of confidence executed by our partner, ACW.” said Dr. Timi Austen-Peters, DLE Chairman. “The hard work, focus and dedication of our team during this process further showcases the depth of our capacity and our resilience to overcome economic challenges, including cyclical oil prices, the CoVID-19 pandemic and the business environment in Nigeria. We have partnered with ACW on the basis of its complementary skillset, strategic insights and differentiated value proposition as a permanent capital vehicle. We look forward to accelerating the implementation of our growth plans and expanding our rich range of capabilities and geographical presence.”
About Africa Capitalworks
Africa Capitalworks is part of the Capitalworks Group, which is a leading independent alternative asset manager concentrating in emerging markets. Capitalworks manages over US$1 billion for a diverse range of investors, including high quality international institutional investors, commercial banks, insurance companies, pension funds, family offices and high net worth individuals. Capitalworks’ philosophy is centered on building exceptional businesses through partnering with leading entrepreneurs and management teams. ACW is a permanent capital vehicle focused on the mid-market in Sub-Saharan Africa, excluding South Africa, and combines the deployment of patient capital with a strong partnership approach.
About Dorman Long
Dorman Long Engineering Limited, established in Nigeria in 1949, is a leading indigenous oilfields equipment, structural steel, marine structures engineering and fabrication company. The company focuses on oil and gas (onshore and offshore), telecommunications, manufacturing, and power industries in Sub-Saharan Africa. Dorman Long Engineering has been and continues to be a major contributor to Nigeria’s industrial and infrastructure development.
Intuit to Accuire Mailchimp for $12B in cash and stock
Intuit, the global technology platform that makes TurboTax, QuickBooks, Mint, and Credit Karma, today announced that it has agreed to acquire Mailchimp, a world-class, global customer engagement and marketing platform for growing small and mid-market businesses.
The planned acquisition of Mailchimp for approximately $12 billion in cash and stock advances Intuit’s mission of powering prosperity around the world, and its strategy to become an AI-driven expert platform. With the acquisition of Mailchimp, Intuit will accelerate two of its previously-shared strategic Big Bets: to become the center of small business growth; and to disrupt the small business mid-market.
Together, Intuit and Mailchimp will work to deliver on the vision of an innovative, end-to-end customer growth platform for small and mid-market businesses, allowing them to get their business online, market their business, manage customer relationships, benefit from insights and analytics, get paid, access capital, pay employees, optimize cash flow, be organized and stay compliant, with experts at their fingertips. Delivering on the promise to be the single source of truth, small and mid-market businesses will have the power to combine their customer data from Mailchimp and QuickBooks’ purchase data to get the actionable insights they need to grow and run their businesses with confidence.
“We’re focused on powering prosperity around the world for consumers and small businesses. Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers,” said Sasan Goodarzi, CEO of Intuit. “Expanding our platform to be at the center of small and mid-market business growth helps them overcome their most important financial challenges. Adding Mailchimp furthers our vision to provide an end-to-end customer growth platform to help our customers grow and run their businesses, putting the power of data in their hands to thrive.”
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