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UAC Reports 4% Decline in Profit After Tax in Q1 2022

UAC net finance income plunged from N95 million in Q1 2021 to -N910 million in Q1 2022

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UAC Nigeria

Despite other income jumping by 603.8% in the first quarter (Q1) ended March 31, 2022, UAC of Nigeria Plc reported a 4.5% decline in profit for the period, according to the unaudited financial statement obtained by Investors King.

Despite other income jumping by 603.8% in the first quarter (Q1) ended March 31, 2022, UAC of Nigeria Plc reported a 4.5% decline in profit for the period, according to the unaudited financial statement obtained by Investors King.

Revenue grew by 25.6% to N27.666 billion in the period under review, while gross profit expanded by 26.5% to N5.075 billion.

As expected operating expenses rose by 25.4% to 3.670 billion. Representing 13.3% of the company’s revenue for the period. Other income grew by a whopping 603.8% to N462 million.

Earnings before interest and tax increased to N1.867 billion, an increase of 62.2% from N1.151 billion filed in the first quarter of 2021.

However, net finance income plunged from N95 million in Q1 2021 to -N910 million in Q1 2022. The decline in net finance dragged profit before tax 4.8% down to N979 million.

Profit after tax for continuing operations moderated by 4% to N642 million. The company’s profit for the period dropped by 4.5% to N639 million.

UAC Key Financial Highlights

• Revenue of ₦27.7 billion, 25.6% increase year on year. Topline growth across all business segments: Animal Feeds
and Other Edibles (+18.0%), Paints (+81.2%), Packaged Food and Beverages (+9.9%), and Quick Service Restaurants (+30.1%).
• Gross profit 26.5% higher YoY at ₦5.1 billion; Gross margin of 18.3% is 13 bps higher as price increases and higher
sales offset rising raw material costs.
• Operating profit 62.2% higher YoY at ₦1.9 billion, margin expansion of 152 bps to 6.8%, led by the Paints segment.
Underlying operating profit of ₦1.5 billion, is 28.6% higher YoY, after adjusting for the profit of N386 million
recognised on the sale of non-core investment property.
• Profit before tax 4.8% lower than Q1 2021 at ₦979 million. Profitability was impacted by higher finance costs YoY.
• Earnings per share 50.3% higher than Q1 2021 at 18 kobo. The increase reflects the benefit of recognising 100% of
UAC Foods Limited’s earnings versus 51% in Q1 2021.

Commenting on the results, Group Managing Director, Fola Aiyesimoju, stated: “We delivered double-digit growth in revenue, operating profit, and earnings per share for the first quarter and continue to manage escalating raw material and energy costs. Working capital levels and short-term debt are elevated on account of the decision to increase inventory holding in the Animal Feeds and Other Edibles segment to mitigate the risk of supply chain disruptions.

“We are closely monitoring inventory levels and leverage and expect the negative impact of interest expense to unwind as inventory levels normalise. Earnings per share increased 50% year on year, reflective of the earnings accretive acquisition of the 49% stake in UAC Foods which we did not own in the first quarter of 2021.

“For all our businesses, the impact of rising inflation is a key focus and our management teams remain focused on proactive pricing. We are mindful of the recent events in Russia and Ukraine and resultant supply disruptions of key commodity inputs including wheat, vegetable oil, maize and fertilizer. We remain committed to executing our key priorities to simplify our structure and processes, drive profitable growth across our core operating segments, and enhance shareholder value.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Walmart, Amazon, Apple, Others Top 2022 Fortune 500 List

Walmart took the top spot for the tenth year in a row, generating $5.1 trillion cumulative revenue over that time

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Fortune Magazine has released the 68th edition of their annual list of the top 500 US companies with Walmart, Amazon, and Apple topping the list.

Fortune 500 list is an annual list of the top 500 largest companies in the United States, ranked based on the total revenue each of the companies generated in their respective fiscal years. It is compiled by Fortune Magazine.

A check by Investors King shows 2022 top 500 largest companies in the United States earned a combined $16.1 trillion in revenue and realised $1.8 trillion in profits. Indicating that the 2021 revenue grew by $6.4 billion, or 19% when compared to 2021 numbers.

Breaking down this year’s list, Walmart took the top spot for the tenth year in a row, generating $5.1 trillion cumulative revenue over that time.  Amazon.com came second with a 22% increase in revenue in 2021 to cross the $450 billion threshold.

Apple, perhaps the most profitable company on the list for the eighth time in eight years, generated profits of $95 billion to sit in the number three position.

CVS Health and CEO Karen Lynch strive to produce Fortune 500 history as the highest-ranking firm ever led by a female CEO, at number 4.

UnitedHealth Group maintained its position as USA’s largest health insurance provider, with considerable growth in 2021. The corporation served 2.2 million more individuals this year than the previous year, and revenue increased by 12% to $287 billion, making it claim the 5th spot.

Exxon Mobil has risen from 10th to 6th place on the Fortune 500 after a difficult, pandemic-affected 2020. After COVID-related limitations drove energy consumption and oil and gas prices to plunge, Exxon Mobil trimmed costs to shore up its balance sheet, laying off 9,000 employees. These measures, combined with a resurgence in oil prices, let the business earn more than $23 billion in 2021, its highest annual profit in seven years.

Warren Buffet’s Berkshire Hathaway generated the second-largest profits among Fortune 500 firms last year, with $90 billion in net income. Its stock also soared, returning 23.2 percent in 2021, putting it in the 7th position.

Alphabet had a spectacular record, reaching $200 billion in sales for the first time. Alphabet was the best-performing Big Tech stock in 2021, with shares up nearly three times the Nasdaq’s 22 percent gain. It also put aside $50 billion for share repurchases and announced a 20-to-1 stock split to stimulate more investment. With steady growth in revenue and profit from 2006, Alphabet took the 8th spot.

Mckesson, one of the largest drug distributors in the country ranked 9th with a clear revenue of $238,228 million in the 2021 fiscal year despite a $4.5 billion loss.

Despite a fall in this year’s ranking, AmerisourceBergen increased its revenue by 12.7%, to $214 billion for the 2021 fiscal year. The company ranked 10th, following its counterpart, Mckesson.

2022 Top 10 Fortune 500 List

  • Walmart
  • Amazon
  • Apple
  • CVS Health
  • United Health Group
  • Exxon Mobil
  • Berkshire Hathaway
  • Alphabet
  • Mckesson
  • AmerisourceBergen

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Toyota Marks 25th Anniversary of Sienna, Lauches Limited Edition

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Toyota

Toyota launches Sienna 2023 to celebrate the model’s first quarter-century of popularity with a limited edition to mark its 25th Anniversary.

The ultra-sporty XSE model, on which the Toyota 25th Anniversary Edition is based, features dark 20-inch split-5-spoke wheels, bolder front and rear bumpers, black-painted caps, and a sport-tuned suspension that is exclusive to the XSE. The XSE Plus Package adds roof rails, Premium Audio with JBL speakers and GPS, wireless charging, and a 1500-watt converter to the Sienna 25th Anniversary Edition, which is available in front-wheel drive or all-wheel drive.

The Sienna 25th Anniversary Edition is available in Celestial Silver and Wind Chill Pearl, both of which are appropriate for the occasion. The two exterior colors are accented by special black badging and exterior trim, including mirror caps and shark fin antenna.

The external mirrors with memory, auto-dimming, puddle lights, power-fold, and reverse-tilt down function are among the amenities added to this celebratory model from the Limited grade.

The Limited additionally includes heated and ventilated front seats with memory, as well as black leather-trimmed seating with silver-colored stitching.

Onboard comfort is enhanced by the Limited’s memory steering column and second-row seats with ottomans, while lighted door sills greet front passengers.

A customized black key fob cover with silver-colored stitching bears a “25th Anniversary” logo, and special “25th Anniversary” floormats pamper the feet.

Also, the Toyota Audio systems in the 2023 Sienna provide a plethora of connectivity and entertainment options, with something for everyone. The LE grade’s base Toyota Audio system comes with a 9-inch touchscreen, six speakers, Android AutoTM, Apple CarPlay, and Amazon Alexa compatibility, seven USB media ports, hands-free phone capability, and music streaming via Bluetooth wireless technology, SiriusXM with a 3-month Platinum Plan trial subscription, Safety Connect with a 1-year trial, and Wi-Fi Connect with up to 3 GB within a one-month trial.

When minivans initially became popular in the 1980s and 1990s, Toyota first imported its rear-drive Van and then the more market-friendly Previa. Meanwhile, Toyota was working on a far more focused entry, the Sienna, which debuted in 1998.

The Sienna has shown to be right on target for the market, evolving to a degree of family car perfection with each design iteration.

Toyota as a brand has retained a great lead in car sales globally despite chip shortages. Investors King explained that in 2021 Toyota surged by 10.1 percent, beating its German counterpart, Volkswagen, and Electric Vehicle, Tesla to having the highest sales record in the world.

Investors King gathered that maintaining the top sales record for two years in a row, Toyota Motor Co. stated that it sold 10.5 million vehicles in 2021, including those by affiliates Daihatsu Motors and Hino Motors. That is 5 percent fewer than the number sold in 2020, its lowest sales figures in 10 years, and more than 8.88 million vehicles delivered by Volkswagen AG within the same year.

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Dangote Seeks Over N300 Billion To Complete Refinery

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Aliko Dangote - Investors King

Business tycoon, Aliko Dangote has finalized plans to seek over N300 Billion ($750 million)  through bonds to complete his refinery project in Lagos State.

Investors King gathered that the refinery project was supposed to be finished in 2019, but funding issues and the COVID-19 pandemic threw a wrench in the works, forcing the deadline to be moved back to 2023.

Dangote sought to raise $750 million from the Nigerian bond market with Dangote Oil Refining Company Limited and Dangote Fertiliser Limited, both Dangote Industries Limited companies, serving as co-obligors under the proposed programme, according to Fitch Ratings.

In order to prevent another extension and complete the refinery project next year, a portion of the funds will be used to cover the $1.1 billion needed to complete the refinery project while the remainder will come from either a Dangote Cement asset sale or the refinery project itself, equity sales.

“If the transaction is not successful, or should completion costs overrun or market conditions in the cement or urea sector deteriorate materially, we do not believe that DIL’s existing creditors would have further lending capacity.

“We believe that further asset sales, either in cement, or stakes in the projects, would be the more likely options to address funding of the refinery,” Fitch’s report reads.

About nine months ago, recall that Dangote opted to increase the workforce of his refinery by 17,000. Investors King reported that “the project currently employs 29,000 Nigerians and 11,000 foreigners at the 650,000 barrels-per-day world’s largest single refinery project located in the Ibeju Lekki area of Lagos. This is a ratio of around three Nigerians to one expatriate presently, which will increase local talent with the new additions.”

Speaking in a broadcast, Investors King quoted Dangote saying “When we started the project, we were supposed to bring a lot of foreign workers, but as we speak today, we have less than 11,000 expatriates. We have almost about 29,000 Nigerian workers that are getting massive training. We are also creating a lot of capacity in the country, which will be of great help for future oil projects in Nigeria, most especially with the opening up of the oil industry through the new Petroleum Industry Act….”

As a matter of fact, the idea of a successful Dangote Refinery project has been the expectation of both citizens of Nigeria and the Government, because,  it will help bring a stop to the importation of crude oil.

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