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

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Dangote Cement’s CDP Climate Rating Upgraded To B-

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 Upgrades Chatbot features, as Leo launches service on Google Business Chat, Instagram

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UBA LEO

Africa’s Global Bank, United Bank for Africa (UBA) Plc has announced the expansion of the services of Leo, its Artificial Intelligence chatbot to Google Business Chat and Instagram.

Leo – UBA’s AI-powered chatbot, which enables customers to make use of their social media accounts to carry out key banking transactions – was first introduced in January, 2018. It has since evolved to become a custom-fitted, personalised virtual banker to several UBA Customers across its 20 African countries. Before now, UBA’s Leo was servicing customers on Facebook Messenger, Whatsapp and Apple Chat.

The bank also announced an interesting upgrade to the existing features of Leo, where customers can now carry out their activities in a 3D animated format. Armed with this upgrade and with its recent expansion to Instagram and Google Business, customers will now be able to carry out more transactions from the comfort of their homes and can now perform more activities such as funds transfer, checking balances, buying airtime and data, and getting their bank statements with ease, from any of these social media platforms. 

UBA’s Group Managing Director/Chief Executive Officer, Kennedy Uzoka, who spoke about the upgraded features of Leo, explained that the bank was always on the lookout for innovative ways to develop strategies aimed at easing transactions for the bank’s numerous users, while ensuring utmost safety of their transactions.

He said, “At UBA, we have been working with technology giants that have the global capacity to ensure not only seamless but also effortless banking for millions of our customers across Africa. We at UBA, have collaborated with the very best to actualise this unbeatable innovation that is capable of revolutionising the way banking is done in Africa.”

He disclosed that Leo’s activities has aptly spread across Africa, changing the face of e-banking in other key African locations including Cameroon, Zambia, Cote D’Ivoire, Senegal, Congo DRC, Tanzania, Kenya, Uganda, Sierra Leone, Gabon, Chad, Congo Brazzaville, Benin, Mozambique, Zambia, Guinea, Burkina Faso, Mali.

Uzoka emphasised that the uniqueness of Leo lies in the convenience. “Customers can initiate transactions without leaving their favoured phone applications. By bringing Leo to the comfort zone of its customers, UBA’s chat banking became a pioneer innovation and has since enjoyed leadership status in the chat banking space,” he explained.

Since inception, Leo has been effortlessly enhancing the digital customer experience in banking and also achieving a range of other benefits like 24/7 availability as the chatbot Leo stays available round the clock to assist customers and handle the common financial queries asked by the customers.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five (25) million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London and Paris, 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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Dangote Cement best Performing Stock – Nigerian Exchange

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Dangote Cement

Africa’s largest Cement manufacturer, Dangote Cement Plc Dangote Cement Plc has emerged the Best Performing Stock of the Year 2021 by the Nigeria Exchange Group (NGX).

Dangote Cement pride as the most capitalized company on the Nigeria Stock Exchange was named the best stock ahead of BUA Cement Plc and CAP Plc, during the 2022 Nigerian Investor Value Award (NIVA) organized by the Businessday in collaboration with the Nigeria Exchange Group

The coveted award meant for two classes of companies namely, the listed companies segment and the Next Bull segment with Dangote cement leading the pack in the Listed Companies best performing stock, in the Industrial goods category having been adjudged to have recorded stellar performance in creating value on the Nigeria Stock Exchange on the basis of criteria such as share price, dividend payments, sustainability, brand value, market leadership and business strategy against its peers during the period under review.

In his address on the occasion, the Chief Executive Officer, Nigeria Exchange Limited, Mr. Temi Popoola, who was represented by the Divisional Head, Capital Market, Mr. Jude Emeka said the award by the Businessday Media Limited underlined Nigeria Exchange Group’s goal of promoting actionable and effective multi-stakeholder dialogue on issues central to a well-functioning finicial system.

While acknowledging that the winner organizations are worthy and truly deserving the honour, he clarified that the winners were selected from among companies that are active and the investors have expressed strong demand to own their shares.   

“As a responsible entity, known for aligning with best global practices, we recognize the importance of corporate governance and effective board leadership in driving sustainability on the business front. That is why we choose to not only recognize listed companies who are blazing the trail in investors relations but those also contributing to building a sustainable socio-economic standard in governance, regulation and compliance.

The Nigeria Exchange boss said the leveraging of investments in business innovation and its diversified range of products and services coupled with robust engagement, we re well on our way to achieving our aspiration to be Africa’s preferred exchange hub especially given the number of advances that have been implemented recently including the launch of the NGX Exchange Traded Derivates Market which saw the listing of two Equity Index Futures Contracts, NGX30 Index Futures and the NGX Pension Index Futures. 

He assured that the NGX remained resolute in its commitment to the provision of a scalable and enterprising platform for issuers and investors to meet their financial objectives irrespective of the prevailing conditions.

Mr. Popoola said “we will continue to consolidate on the advances by focusing on key initiatives aimed at creating growing the capital market for the benefit of all key stakeholders.

In his address of welcome, the Publisher, Businessday, Mr Frank Aigbogun said the NIVA formerly known as the Top 25 CEOs Award recognizes leaders of private and public companies who have created sustainable alpha-generating value for their shareholders through strategic priorities, operation efficiency, organizational values and marketing engagement activities.

He explained that Covid-19 was what most companies, including Nigerian businesses never envisaged but the reality today is that Russian-Ukraine crisis has again emphasized the urgent need for backward integration and value addition to the nation’s primary produce. Aigbogun expressed happiness that the Nigeria capital market has remained strong in the mix of the global realignment that is going on consequent upon the Ukrainian crisis.

Mr. Obu Oliver, the Group Financial Controller, Dangote Cement Plc. who received the award thanked the organizers for the award and assured that the companies would not rest on its oars in sustaining the strategies that make the stock the best performing.

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Dollar To Naira Exchange Rate Today (Mon. May 16, 2022)

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Dollar To Naira Exchange Rate Today (Mon. May 16, 2022)

Dollar to naira, on Monday, May 16, 2022, opened at (undisclosed) at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency either gained or lose against the United States dollar, as foreign exchange (forex) trading closed at N414.74 per $1 on Friday, May 13.

How much is dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, dollar to naira was bought for N570 and sold for N586 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

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