Company reports on NSE shows how Dangote Sugar, others are thriving despite the pandemic
A percentage of companies listed on the NSE indices have beaten the expected profit range as their third-quarter reports show.
While it is not far from the standard, having more than half of the companies performing well in a quarterly forecast, it was also not expected yielding to the pandemic.
Highlights of company financial statements – Dangote Sugar, Nestle, MTN
The government imposed locked down and stay at home orders left people to online activities.
Reflecting on MTN who took advantage of the changes, its profits grew seamless in the last nine months. MTN Nigeria earnings were up by N975.7 million a 13.9% change when placed side by side with a year earlier.
The pandemic ignited fear and projected only slumps for companies. However, several companies thrived, both big and small. Driven by the pandemic, delivery startup companies saw a boost in their businesses.
No company has so far declared bankruptcy in Nigeria but about 97% including Unilever Nigeria ran at a loss. The company revenue dropped 40% to N14 billion between April and June as its 2020 half-year report shows.
- Accounts affected by the court order – End SARS account freezing
- NSE Ends Last Week’s Market on a Positive Figure
Similarly, on the consumer goods sector, Nestle did see a small slash in profit for the Q2.
Dangote sugar took advantage of the strong demand during the lockdowns and raised revenue of N11.6billion, slightly above the N10.9 billion of the same time the year before according to its half-year report.
All liabilities costs Dangote N104 billion with it didn’t budge. Conoil, John Holt some of those that also reported big gains.
Other effects of the pandemic on businesses in Nigeria
The pandemic presents very little recourse to certain companies, especially private passenger airlines. Without government stimulus, they have little options for improving their 2020 prospects even though they are forced to cut prices.
The insurance industry also saw a chance to thrive with more private sectors securing corporate insurance policies. This gave insurance companies like Aiico a boost of 17% to a profit of N5.2 billion.
In the second quarter of 2020, Nigeria had already lost 3.4% amounts to around USD 16 billion in addition to the oil price collapse.
Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com