- PepsiCo Posts $12.88bn Revenue in Q1
PEPSICO Incorpoated released its first quarter 2019 results on Wednesday, followed by a conference call with analysts.
According to Forbes, the company beat market expectations for revenue as well as earnings. PEP reported a revenue of $12.88bn in Q1, marking a year-on-year growth of 2.6 per cent.
The results, which were posted on the New York Stock Exchange, showed that the higher revenue was mainly driven by strong growth of 5.5 per cent in the Frito-Lay segment, effective net pricing and higher volumes for healthy snacks, juice and water products, and non-carbonated drinks.
The company’s core EPS came in at $0.97 per share in Q1, slightly higher than $0.96 in the year-ago period and much higher than the consensus of $0.92 per share.
Higher earnings were primarily a reflection of stronger revenue growth, productivity savings, and lower interest burden, partially offset by an increase in the effective tax rate.
Revenue from Frito-Lay North America, which contributes a little over a quarter of the company’s total revenue, increased by 5.5 per cent year-on-year in Q1. Higher revenue was primarily driven by effective net pricing and volume growth of two per cent.
Higher volume was driven by strong sales of its trademark Doritos and Ruffles, partially offset by a double-digit decline in Santitas. Operating margins increased marginally in Q1 due to net revenue growth and productivity savings, partially offset by certain operating cost increases.
For the full year, analysts expect the company’s revenues to grow by 3.1 per cent to $66.7bn in 2019, driven by growth in the company’s healthy snacks, sports drinks, and non-carbonated beverage portfolio.
An effective tax rate of 21 per cent in 2019 (compared to tax benefits received in 2018), incremental investments by the company to strengthen its business, and absence of gains from sale of assets (unlike in 2018), is expected to lead to a sharp drop in net income margin to 8.5 per cent in 2019 from 19.4 per cent in 2018.
However, gains from the company’s recently announced new productivity plan are expected to support margin growth going forward.
Remove Face Mask When Using ATM, Banks Tell Customers
Face Mask May Cause ATM Transaction Failure, Banks Tell Customers
Deposit Money Banks have said due to their face recognition technology, customers wearing face masks may experience service failure while using the Automated Teller Machines (ATMs).
In an email issued to customers by Fidelity Bank, the bank said why the use of face masks is important to curb the spread of COVID-19 pandemic, customers should remove when performing ATM transactions.
The bank said “Wearing of face masks is a safety and precautionary measure we must all adhere to in this period of the COVID-19 pandemic.
“However, we advise that you remove your face mask while making withdrawals or carrying out ATM transactions to allow our ATM properly recognise you.
“Fidelity Bank ATM machines have face detection features installed to curb incidences of fraudulent ATM withdrawals.
“Consequently, you may not be able to carry out any transaction if our ATMs are not able to properly recognise you. We apologise for the inconvenience that this may cause you.”
Meanwhile, Guaranty Trust Bank plc continues to ease accessibility for all customers and advised customers to protect themselves.
GTBank said, “When visiting any of our branches, kindly protect yourself by wearing a face mask at all times. It is also very important that you keep a safe distance when in a queue inside or outside the branch.
“Before visiting any of our branches, please remember that you can withdraw up to N150,000 at all our ATMs and that you can do most of your banking from the safety of your home.”
Access Bank in Talks to Acquire Cavmont Bank
Access Bank to Acquire Cavmont Bank in Zambia
Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.
According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.
However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.
“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”
The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.
Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.
The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.
Mohammed Umar is the New Acting Chairman of EFCC
Buhari Appoints Mohammed Umar as EFCC Acting Chairman
President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.
A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.
Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.
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