C and I Leasing, a Nigerian maritime company, reported a 129 percent decline in profit after tax for the period ended December 31, 2021, despite slashing personnel expenses.
The company gross earnings fell 5.5 percent from N21.275 billion recorded in the 2020 financial year to N19.883 billion in 2021. Income from lease rental also dipped by 9.1 percent to N16.222 billion. Net lease rental income stood at N8.255 billion in 2021, a decline of 14.3 percent from N9.634 billion filed in the corresponding period of 2020.
Net income from outsourcing also dropped to N1.273 billion in the year under review from N1.602 billion in 2020. Depreciation expense rose to N4.291 billion while personnel expenses inched lower by 6.1 percent to N1.289 billion.
C and I Leasing managed to reduce operating expenses by 36.75 percent from N1.716 billion to N1.085 billion. This significant decline helped bolstered profit before tax by 2.1 percent to N484.9 million in 2021. See other key highlights below.
C and I Leasing Key Financial Highlights for 2021:
▪ Total assets of N58.13 billion, up by 3.74% year-to-date (December 2020: N56.1 billion)
▪ Finance cost of N4.6 billion, declined by 15.1% year-on-year (12M 2020: N5.4 billion)
▪ Shareholders’ funds of N13.77 billion, up by 3.3% year-to-date (December 2020: N13.34 billion)
▪ Capital adequacy ratio of 21% (CBN requirement: 12.5%)
Commenting on the company’s performance, Ugoji Lenin Ugoji, the new Chief Executive Officer/MD, of the company, said “On the Economic Outlook for Q1 2022 and roundup for four quarters of 2021, with only about 2.5% of Nigerians and 10.1% of Ghanaians fully vaccinated COVID-19’s pandemic rippling effects are still being felt by both economies and by extension in most businesses where we have our operations domiciled. We saw a dull demand for some products coupled with rising cost of goods.
“This affected the cash flows of a lot of businesses. However, GDP growth rates of Nigeria and Ghana are expected to be at 2.7% and 6.17% respectively for 2022 and we envisage an increase in demand for products as both economies continue to open and an increased recovery of oil demand”.
“Furthermore, inflationary pressures as well as exchange rate fluctuations have been issues the company continues to deal with. However, measures are in place to ensure we hedge against such uncertainties and an increased focus is now being given non-asset-based revenue options to create a counterbalance for low asset utilization caused by shrinking demand for the assets. Despite the challenges, we have remained focused on cost optimization, business process improvement initiatives and ensuring efficiency in the management of our sales performance.
“We are also actively working on digitizing our value offerings across the Fleet Management, Outsourcing and Marine businesses with increased attention on our emerging E-Business platforms. As you may be aware, people empower technology, technology empowers innovation, the business landscape changes, and this cycle continues, yielding positive results in the long run”.
“We remain resilient; with increased vaccine rollouts, we are hopeful there will be a consistent economic recovery though fault lines such as renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow by 4.4% in 2022, specifically the economy of Sub-Saharan Africa is projected to grow by 3.7% in 2022 but we are confident that our business is fundamentally strong to withstand any future challenge towards enhanced performance”.
Automobile Firm to Complete Large Assembly Plant In Ogun, Unveils Plans to Build Vehicles
The plant would be completed by the end of the year and its operation would boost the exportation of vehicles abroad
As part of its plans to expand its business space and boost exportation, an automobile Firm, Lanre Shittu Motors (LSM) has said it was constructing a large vehicle assembly plant in Sagamu, Ogun State.
According to the Group Executive Director of the firm, Mr Taiwo Shittu, the plant would be completed by the end of the year and its operation would boost the exportation of vehicles abroad.
The CEO of the indigenous auto assembler, during an interview in Lagos State, also disclosed plans to build vehicles that will be known as Lanre Shittu.
Already, Shittu said the firm has started assembling a mid-size pickup truck christened Huanghai LSM, in partnership with a Chinese automobile manufacturer, Dandong Huanghai Automobile Co Ltd with a view to building Nigerian auto industry.
Shittu, while explaining the reason behind the collaboration of LSM with the Chinese firm, said it was to share technology and other things that would aid exportation to other African countries and beyond.
He said his firm has a plan to own a vehicle called LSM (Lanre Shittu Motors), and described Huanghai as a very good brand which is the second-biggest pickup company in China.
He said LSM’s partnership with Huanghai would afford them the opportunity to share technology among others before fully facing the indigenous firm.
LSM chief executive noted that the focus of the firm is to build the Nigerian automobile industry to the level of exporting its products to other African countries and beyond, adding that LSM, which will be 42 as a vehicle manufacturer this year would soon have its brand intact.
According to him, the company’s assembly plant had started injecting local content into products coming from the auto assembler, saying that about 30 percent of components of vehicles assembled from Lanre Shittu Motors are currently sourced locally.
For him, all the lubricants, the grease, liquid-based materials used in vehicles are assembled and sourced locally, adding that materials for the box body, which is the buckets on the trucks, welders design are being fabricated together in about 30 per cent local content in some cases.
Calling on the Federal Government to urgently come up with policies that would encourage automobile component manufacturers to come and build factories in Nigeria, Shittu likened Nigeria to a big market for manufacturers and investors.
For their investments to birth positive fruits, he sought the need for the Federal Government to enact policy that would attract investors.
He said if the government places 100 per cent duty on imported versions of the products that are sourced locally, no Nigerian manufacturer of vehicles would be buying imported parts when the locally-made are cheaper and of the same quality.
Investors King gathered that LSM has the potential to manufacture 2500 vehicles annually and it became a household name with the MAC and JAC heavy-duty trucks in October 2018.
It is a certified KIA, NISSAN, and Jinbei Bus dealer before its full venture into vehicles manufacturing.
Tesla Releases Fourth Quarter Result, Misses Wall Street Revenue Prediction But Beats Earnings
Automaker and clean energy company Tesla on Wednesday released its fourth-quarter results, missing wall street revenue prediction but surpassed that of earnings.
The Wall Street consensus for Tesla’s Fourth quarter (Q4) earnings was $24.6 billion in revenue and earnings of $1.13 per share. Meanwhile, Tesla’s revenue was down $280 million from wall street expectations, after it posted a revenue of $24.32 billion million but beat the earnings expectations with $1.19 per share.
At the end of the Fourth quarter (Q4), Tesla had $1.4 billion in free cash flow, down from the $3.3 billion cash flow recorded in the third quarter. Its stock witnessed a 3.2% spike to $149 per share after the earnings report became public and has continued to rise to $151.52 in the premarket.
Tesla closed the quarter (Q4) with a 16% operating margin, while its Automotive gross margins came in at 25.9%, the lowest figure in the last five quarters. Also, its operating cash flow was down 29% from last year, and down 36% from last quarter, coming in at $3.28 billion.
In terms of deliveries, the company disclosed it produced over 439,000 vehicles and delivered over 405,000 vehicles, bringing Tesla’s 2022 full-year deliveries to around 1.31 million vehicles.
Investors King understands that in 2022, the automaker slashed the prices of its vehicles around the world, a strategy that sparked demand for its vehicles.
Speaking on the slash of its vehicles, the company CEO Elon Musk said, “Price matters, the vast number of people that want to buy a Tesla car, can’t afford it, and so these price changes really make a difference for the average consumer.”
In October 2022, Tesla announced price cuts in China by up to 9% on the Model 3 and Model Y, reducing prices further by nearly 14%.
Earlier this month, it lowered the price of its long-range Model Y crossover (20% to $52,990) and Model 3 Sedan (14% to 53990) for U.S. buyers.
Musk disclosed that after Tesla slashed the prices of its vehicles, January saw the strongest demand ever in Tesla’s history, which he said that the demand exceeded production.
On the other hand, Tesla on Tuesday announced plans to invest $3.6 billion more into its Gigafactory in Nevada, adding two new facilities dedicated to building battery cells and Tesla semis, as it disclosed plans to boost production by 50% this year.
Cadbury Nigeria Reports 110% Jump in Profit in 2022
Cadbury Nigeria, a food, sweets and drink company headquartered in Lagos, on Wednesday announced a 30% increase in revenue from N42.372 billion reported in the 2021 financial year to N55.213 billion as of December 31, 2022.
In the company’s unaudited interim financial statement obtained by Investors King, gross earnings improved to N7.765 billion, a 20% increase from N6.478 billion filed in the corresponding period of 2021.
Results from operating activities stood at N247.214 million following a 50% decline from N491.468 million recorded in 2021.
Profit before tax grew by 23% to N1,352 billion in the year under review from N1.098 billion in 2021.
Profit for the year rose by 110% to N946.093 million from N449.712 million achieved a year ago. Share capital remained unchanged at N939.102 million.
Similarly, basic earnings per share appreciated by 110% from N23.94 to N50.37.
Meanwhile, Cadbury Nigeria was awarded a top employer certificate in Nigeria in 2022.
The Managing Director, Cadbury Nigeria, Oyeyimika Adeboye, in a statement, said: “We are excited that our company has been recognised as a Top Employer beyond the shores of Nigeria. This shows our people’s policies and practices are world-class. We will continue to put our people first and delight our consumers with the right snacks made the right way.”
Human Resources Director, Cadbury Nigeria, Wole Odubayo, added: Our certification as a Top Employer for the 2nd year consecutively in Nigeria, and ranking as one of the top three companies in Nigeria, further emphasize our commitment to best-in-class people practices, and a strong mindset of continuous improvement.
“It is also my pleasure to note that our Top Employer certification for this year is not just for Nigeria, but we have been certified as a Top Employer in Africa as well, and this serves to enhance our appeal as the employer of choice that we truly are.”
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