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International Breweries, UNTL’s N562mn loss compounds investors’ woes

By Michael Eboh & Providence Obuh
Investors’ woes were further heightened last week, as two companies on the Nigerian Stock Exchange (NSE) declared a loss of N561.96 million in their half year financial statements released to the investing communities.

This is in addition to losses posted by about 10 companies in various sub-sectors of the NSE within the last one month.
With these unimpressive results, it is expected that investors’ earnings in the capital market would be drastically reduced, as the value of their investments would drop drastically, in terms of drop in the prices of the shares of these companies, while it is also expected that only a handful of companies would declare dividends and bonus for their shareholders.

With the current crisis in the banking sector, only a handful of banks would be able to declare dividends and bonus while a vast majority of the banks would likely not be able to declare returns to their shareholders in the current financial year.

However, despite the not-too-impressive financial results of a number of quoted companies, the value of listed equities on the Nigerian Stock Exchange (NSE) appreciated last week by N38.39 billion.

Specifically, the value of listed equities appreciated by 0.74 per cent, as the market capitalisation which opened the week at N5.192 trillion rose by N38.39 billion to close at N5.230 trillion, while the All-share index garnered 165.12 basis points to close at 22,497.27 points from 22,332.15 points at which it opened the week.

Among the companies that released their financial statement to the NSE, International Breweries Plc, declared a loss after tax and exceptional items of N66.62 million in its unaudited result for the half year ended June 30, 2009, financial result, compared with a profit after tax and exceptional items of N56.54 million in the comparable period of 2008. This was in spite of the 41.08 per cent in its turnover, which stood at N706.8 million in the period under review compared with a turnover of N501.01 million recorded in 2008.

United Nigeria Textiles Plc, in its unaudited result for the half year ended June 30, 2009, posted a turnover of N4.52 billion, compared with a turnover of N5.93 billion in the comparable of 2008, while it posted a loss after tax of N495.34 million compared with a loss after tax of N574.2 million in 2008.

Red Star Express Plc in its unaudited result for the half year ended, June 30, 2009 recorded a 6.53 per cent dip in its bottom line, as its profit after tax stood N92.74 million compared with N99.22 million in the comparable period of 2008. Its turnover, however, appreciated by 8.42 per cent, from N1.03 billion, as against N949.34 million in the comparable period of 2008.

In its unaudited result for the half year ended, June 30, 2009 Continental Reinsurance Plc posted a gross premium of N3.17 billion, as against N2.56 billion in the comparable period of 2008, while its profit after tax stood at N234.3 million, dropping by 52.48 per cent from N493.03 million recorded in 2008.

However, Guinness Nigeria Plc posted an impressive financial result, declaring a turnover of N89.12 billion, compared with N69.17 billion in 2008. Its profit after tax and exceptional items rose by 14.17 per cent from N13.54 billion compared with N11.86 billion in 2008.  The company had earlier recommended a dividend of N7.50 per share.

Meanwhile, in the share price gainers’ table, in the week under review, Total Nigeria Plc recorded the most share price gain, rising by N13.98 to close at N150.48 per share, Mobil Oil Nigeria lc followed with a gain of N8.03 to close at N105.00 per share and Lafarge Cement WAPCO Plc garnered N2.97 to close at N34.00 per share.

Other share price gainers include: Julius Berger Nigeria Plc N2.11, Glaxo Smithkline Consumer Nigeria Plc N1.64, Zenith Bank Plc N1.60, Chemical & Allied Products Plc N1.39, UACN Property Development Company Plc N1.26, Union Bank of Nigeria Plc N1.22, UAC Nigeria Plc N1.20 among others.

On the contrary, Guinness Nigeria Plc recorded the most share price loss, dropping by N7.50 to close at N136.50 per share, Nigerian Breweries Plc followed with a loss of N5.10 to close at N54.90 per share and Seven-Up Bottling Company Plc dipped by N1.50 to close at N28.50 per share.

Other share price losers include: African Petroleum Plc N1.50, Conoil Plc N1.31, Ecobank Nigeria Plc N1.14, Cement Company of Northern Nigeria Plc N1.08, Nigerian Bottling Company Plc    N0.95, BOC Gases Plc N0.78, Diamond Bank Plc N0.66 among others.
Equity trading appreciated by 54.93 per cent, as a turnover of  turnover of 2.2 billion shares valued at N16.14 billion was recorded, in the week under review, in 27,236 deals, in contrast to the previous week’s turnover of 1.42 billion shares valued at N12.93 billion in 20,011 deals.

The Banking sub-sector dominated the other sub-sectors, accounting for 70.45 per cent of the market turnover, with 1.55 billion shares valued at N13.2 billion in 16,117 deals. Access Bank Plc recorded the highest patronage, trading 490.16 million shares valued at N3.08 billion in 926 deals, followed by Zenith Bank Plc with the exchange of 167.07 million shares valued at N2.23 billion in 1,270 deals and  First Bank of Nigeria Plc recorded 144.91 million shares valued at N2.1 billion in 3,577 deals.

The Insurance sub-sector followed on the sectorial analysis, accounting for 10.64 per cent of the market turnover, with 234.6 million shares valued at N274 million in 1,639 deals.  Continental Reinsurance Plc enjoyed the most patronage in the sub-sector, trading 79.11 million shares valued at N137.99 million in 143 deals, followed by International Energy Insurance Plc with a turnover of 29.71 million shares valued at N20.11 million in 155 deals and Lasaco Assurance Plc recorded 24.25 million shares valued at N13.9 million in 150 deals


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