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2021 FY: Dangote Cement, 2 Other Firms Projected To Surpass Their Revenue Targets



2021 FY: Dangote Cement, 2 Other Firms Projected To Surpass Their Revenue Targets

Dangote Cement, MTN Nigeria, and Airtel Africa, three of Nigeria’s largest companies by market value, are on course to surpass their internal earnings forecast in 2021, thanks to a stronger-than-expected performance in the first nine months of the year.

Dangote Cement surpassed the N1 trillion revenue mark in the first nine months of 2021, the shortest period it has ever done so and is now a short crawl away from equalling the total revenues made in 2020.

Thanks to higher demand for cement, Nigeria’s largest producer of building material recorded N1.02 trillion in revenue in the first nine months of 2021.

READ ALSO: Jubilation For Shareholders As Dangote Cement Records N405.5bn Profit

It means Dangote Cement needs to make sales worth only N100 million in the three months through December to match its total revenue of N1.03 trillion in the whole of 2020. That is less than 0.5 percent of the N340 billion average quarterly revenue the company has reported this year.

“Looking at the data, Dangote Cement and MTN Nigeria look nailed on to post record revenues in 2021 and beat their earnings forecast,” Tajudeen Ibrahim, head of research at Lagos-based investment bank, Chapel Hill Denham, says in a response to questions.

Dangote Cement’s revenue in the nine-month period was 34.2 percent higher compared with last year’s N761 billion. The cement maker’s profit jumped 33.6 percent to N278 billion in the said period from N208 billion last year.

MTN Nigeria is also on course to beat last year’s performance and eclipse its target for 2021 with revenue of N1.206 trillion in the first nine months, which is only N144 billion away from last year’s total revenues of N1.35 trillion.

READ ALSO: Dangote Cement Posts Resilient Performance in First Half 2021

The N144 billion MTN Nigeria needs in the fourth quarter to equal 2020’s total revenue is less than half of its quarterly average revenue this year of N340 billion.

In the fourth quarter of 2020, MTN Nigeria reported revenues of N370 billion, which is higher than last year’s average, as revenue for telcos tends to be higher in the fourth quarter due to the festivities. Any improvement on the revenue made in 2020 will be enough to see the telecom giant surpass its target for 2021.

“In the first nine months of 2021, we continued to enhance the resilience of the business, improve our performance and make good progress towards our Ambition 2025 strategy,” Karl Toriola, MTN’s CEO says.

“In the remainder of the year, we will build on the momentum from Q3 to deliver on our service revenue growth target,” Toriola states further.

MTN’s revenue in the nine-month period represents a 23.6 percent increase compared with the N975 billion recorded in 2020, while profit after tax jumped by 52 percent to N220 billion from N144 billion.

Active data users increased by 2.5 million to 33.2 million while service revenue was up by 23.7 percent to N1.204 trillion. Voice revenue was the biggest revenue driver in the period, climbing 10 percent to N722 billion.

Data was the second biggest driver of revenue with N366 billion, a 51.5 percent increase from last year. Fintech revenue grew 55 percent from last year to contribute N50.2 billion to the total revenue pool while Digital revenue was up 56 percent to N12 billion.

Meanwhile, other service revenue rose 38 percent to N53 billion, the third-largest revenue source. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 27.4 percent to N634.5 billion.

Airtel Africa is also ahead of its 2021 target. The telco saw its profit jump the most of the three firms analyzed by BusinessDay, with a 131.6 percent increase to $335 million in the half-year ended September 2021, from $145 million in the same period of 2020.

Revenue grew by 27.6 percent to $2.27 billion compared with $1.8 billion the previous year.

“Our first-half financial performance has been strong,” Segun Ogunsanya, Airtel Africa’s chief executive officer, states.

“The first half of last year, and especially Q1, was impacted by the start of COVID, but even after adjusting for these effects, our revenue growth rates for the half-year for the Group and all our service segments are ahead of our FY’21 revenue growth trends, and in reported terms, these are all in strong double digits,” Ogunsanya says.

There was double-digit growth across all the regions Airtel Africa operates in the first half of 2021 ended September (Airtel has a unique calendar).

Airtel Nigeria reported revenues of $896 million, a 32.4 percent increase compared with last year. East Africa revenue was up 25.8 percent and Francophone Africa up 22.1 percent. Double-digit growth also applied for all key services, with Voice up 19.7 percent, Data up 36.9 percent, and Mobile Money up 42.0 percent, according to the company’s financial statement.

Nigerian companies are enjoying a strong rebound from the pandemic-ravaged 2020 when revenues slumped to record lows.

For the three companies (Airtel, MTN, and Dangote Cement) however, the impact of the pandemic was not as pronounced as in other sectors, so they are not coming from as low a base as several other companies.

This highlights the resilience of the three businesses amid trying times.

Culled from Business Day

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UBA Group Dominates the 2021 Banker Awards, Wins ‘African Bank of the Year’



uba bank of the year

Africa’s global bank, United Bank for Africa (UBA) Plc yet again, reaffirms its leadership position across Africa, as the bank has been globally recognised as the African Bank of the year 2021 by the Banker Magazine, a leading global finance news publication published by the Financial Times of London.

UBA’s solid financial performance, its excellent service delivery to customers and its continuous role of facilitating rapid economic growth across the African continent were some of the reasons that led to the bank being named best bank in 12 of its African subsidiaries and in Nigeria. UBA Nigeria Plc, UBA Benin, UBA Burkina Faso, UBA Cameroon, UBA Chad, UBA Congo Brazzaville, UBA Cote D’Ivoire, UBA Gabon, UBA Guinea, UBA Liberia, UBA Senegal, UBA Sierra Leone and UBA Zambia all came out top as the best banks in their respective countries.

This will not be a first for UBA.  In 2020, six of its subsidiaries in Benin, Cote D’Ivoire, Chad, Liberia, Sierra Leone and Zambia were winners of the Best Bank award. This year, the UBA Group is breaking a record with its exceptional wins as African Bank of the Year and Bank of the year in 13 countries.  The total 14 awards makes it the first time ever in the history of the almost 100 years of The banker, that any banking group will be clinching as many as 14 wins in a single year.

At the Virtual award ceremony which was held on December 1st 2021, the Middle East and Africa Editor for The Banker, John Everington, explained at the event that a rigorous and highly analytical process is made annually to reach the decision for each Bank of the Year award and the institution’s reputation for independence, authority and integrity is thoroughly applied to each submission.

“While several African banks impressed the judges this year, there was no doubt as to the worthiest recipient of the Bank of the Year for Africa – UBA Group – a clear winner across a wide range of criteria. UBA has performed impressively across its footprint with a strong financial performance across most of its markets,” Everington said.

UBA’s Group Managing Director/Chief Executive Officer, Kennedy Uzoka, who expressed delight over the recognition from The Banker stated “Like I always say, at UBA, we must be doing something right. Winning 14 total awards in13 subsidiaries and the Bank of the Year on the African continent is a big achievement.’ 

Continuing, Uzoka said, “The recognitions come as a reassurance that we are on track in consolidating our leadership position in Africa, as we continue to create superior value for all our stakeholders. We have our millions of customers across the globe and our many thousands of staff to thank for this. They are the very reason why we keep winning’

Since1926, the Bank of the Year awards has been celebrating the best of global banking and is regarded as the industry standard for banking excellence. The 2021 edition highlights those institutions that have outshone their peers in terms of performance, strategic initiatives and response to the Covid-19 pandemic.

The Banker Magazine is a publication of the Financial Times – a leading global finance news publication which has been in existence since 1888. The Banker magazine is the definitive reference in international banking for high level decision makers.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five million customers, across over 1,000 business offices and customer touch points, in 20 African countries.

With presence in the United States of America, the United Kingdom and France, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services

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FBNQuest Gets New Non-Executive Director



FBNQuest Gets New Non-Executive Director

FBNQuest Capital Ltd., a subsidiary of FBN Holdings, has announced the appointment of Alhaji Abdullahi Ali Gombe, as an Independent Non-Executive Director.

The Chairman, FBNQuest, Mr. Oyewale Ariyibi, disclosed this in a statement made available on Wednesday in Lagos.

Ariyibi said the company had received all relevant regulatory approvals for the appointment.

READ ALSO: Court Strikes Out Case Against Soludo’s Election

He said that Gombe was joining the board of the company with over 28 years of professional experience.

Ariyibi said he had served several institutions in various professional capacities and had been involved in key transactions that added significant value to the organizations where he served.

He added that prior to joining the board of FBNQuest, Gombe served on various boards including Nigalex Nigeria Ltd., FBN Bureau De Change Ltd., and FBN Bank (DRC) Ltd.

“On behalf of the board, management, and staff of FBNQuest Capital, I am delighted to welcome Alhaji Gombe, MNI to the Company as he brings on board his wealth of experience cutting across various industries and institutions.

“We are certain that his experience will have an immediate and positive long-term impact on the business.

“FBNQuest remains committed to recognizing strong corporate governance as a key driver in ensuring sound business practices are entrenched in the core of its operating model for transparency and the inclusion of all stakeholders,” he added. 

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After 10-month Hiatus, Emirates Airline Resumes Operations To Nigeria



After 10-month Hiatus, Emirates Airline Resumes Operations To Nigeria

Emirates Airline would on Sunday, December 5, 2021, resume its flight operations to Nigeria.

Newsrand understands that direct flights between Dubai and Nigeria were restricted in March over issues relating to COVID-19 test requirements.

A month before the restriction, Emirates had directed Nigerian travellers at the Lagos and Abuja airports to conduct rapid COVID-19 tests before departure. This didn’t sit well with the President Muhammadu Buhari-led government, as it banned the airline flights in Nigeria.

The ban was later lifted after the airline agreed to stop the rapid antigen tests.

However, in a sudden twist, the federal government reintroduced the ban, explaining that Emirates had continued to conduct rapid antigen tests for passengers before departure from Nigeria in spite of the agreement they had.

While the Nigerian Civil Aviation Authority (NCAA) said the moves by Emirates Airline violated the country’s COVID-19 protocols, Minister of Aviation Hadi Sirika described it as “discriminatory profiling” of Nigerian travellers.

But on Thursday, December 2, Emirates, in a statement, said flights would resume in a matter of days, mandating COVID19 PCR tests for all inbound passengers.

Going by this development, passengers from Nigeria will take the COVID-19 PCR test within three days before departure and another test on arrival at the UAE.

The world’s largest international airline will operate to and from its Nigerian gateways with daily flights, providing travellers from Nigeria convenient access to Dubai, which remains a highly popular holiday and business destination,” the statement from Emirates, the flag carrier of the United Arab Emirates (UAE) read.

The airline said travellers coming from Nigeria must hold a negative COVID-19 PCR certificate for a test taken no more than 72 hours before departure.

It added that passengers departing Nigeria must obtain their certificates from designated centres provided by the Nigerian Centre for Disease Control (NCDC).

Emirates Airline flights schedule

Emirates would fly to Abuja with EK 785 and 786, leaving Dubai at 1100hrs, arriving in Abuja at 1540hrs. The return flight, EK 786 will take off from Abuja at 1900, arriving in Dubai at 0435hrs the next day.

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