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Nigerian Bottling Company increase Turnover by 16.8% in 2008

Category: Capital Market


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Nigerian Bottling Company increase Turnover by 16.8% in 2008

 

Proshare NI
May 11, 2009 at 15:28 GMT
 
Nigerian Bottling Company (NBC) Plc has increased its Turnover by 16.8 percent (16.8%) for the year ended December 31 2008. This was contained in the reports presented at the Floor of the Nigerian Stock Exchange (NSE) in Lagos Nigeria.
 
NBC announced a Gross Earning of N80.081 billion representing about 16.8 per cent increase over N68.529 billion recorded in 2007.
 
The Food and Beverage giant led three other companies to post a whopping N90.7 billion Turnover in their Audited Reports for the review period. While the likes of Custodian and Allied Insurance Plc reported a Turnover of N4.102 billion as compared to N2.715 billion in 2007.
 
Going by this performance, investors in the equities market may be in for mouth-watering returns as more companies’ results have continued to show improvement over the previous year; defying the meltdown.
 
Two of the quoted companies, Berger Paints Nigeria Plc and Presco Plc recorded a Turnover of N2.534 billion and N3.964 billion respectively compared to N2.275 billion and N2.267 billion in corresponding year of 2007.
 
However, NBC which is listed on the Food and Beverage sub-sector of the Stock Exchange recorded a sharp drop in its Profit after Tax (PAT) which stood at N15.7 million compared with previous year’s N3.172 billion representing over 90 percent (90%) drop in the review period.
 
The Board of Directors (BOD) affirmed that on December 18 2008, the production plant in Benin was substantially damaged by fire, as a result of which impairment charge of N3.166 billion on the company assets reduced by N1billion being first interim payment received from the insurers.
 
In the same vein, the Board of Berger Paints has recommended 30 kobo dividend per share.  The company  recorded a PAT of N205.63 million in 2008 compared to N112.62 million in 2007; representing over a 100 percent (100%) increase in the review period.
 
Berger Paint affirmed that it is only investors who bought into the company before the closure of company register of members on May 19, 2009 would benefit from the dividend.  Capital Market Analyst described the dividend payout as commensurate giving the current price of slightly above N6.30.
 
Presco plc is listed in the Agriculture/Agro-Allied sub-sector recorded over 90% improvement in its bottom-line as PAT grew from N37.25 million in 2007 to N674.05 million in 2008.
With a share price that currently stands at about N5.50, Market Analyst affirms that the company’s offer of 30 kobo dividend per unit of share was simply good for the its shareholders.
 
Investors who bought into the company before July 13 2009 when the company membership register closes are entitled to reap the Returns on Investment (ROI) while payment date is August 10, 2009.
 
Okpara Mike  Ezeh, Chief Executive Officer (CEO), Crane Securities Limited, a (Member of the Nigerian Stock Exchange) commenting on this, asserts that the results proved that the fundamentals of companies quoted on the Exchange were actually strong insisting that there was no reason for the lingering meltdown in the Market.
 
He advised investors to take advantage of the low prices to position in companies with strong fundamentals in order to reap the attractive dividends some of the companies are likely to declare soon.
 
Edikan Ekong Managing Director/Chief Executive Officer (MD/CEO), Oasis Capital Portfolio Limited, observed that the meltdown was as a result of panic reaction by investors.
 
He cautioned investors against using borrowed funds and money for recurrent expenditure like children school fees to play in the Capital Market; affirming that they simply do not tally; since the borrowed funds is the for short term.


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