The much anticipated earnings season is here as the market last week was bombarded with Q4 earnings of quoted companies on the floor of the Nigerian Stock Exchange. The results released so far have been good despite the obvious challenges that overwhelmed businesses in 2020 due to Covid-19 pandemic. One would have expected a woeful result, but that is not the case at all.
So far we have seen the Fourth Quarter results of First Bank of Nigeria Holdings, Okomu Oil, Livestock Feeds, Ecobank, Stanbic IBTC, Fidelity Bank, Total Nigeria, and Berger Paints among others.
No corporate action has been published yet as the results are released are Unaudited Financial Statements. Corporate actions would definitely come along with the Audited reports when eventually released to the market.
Commenting on the Q4 2020 earnings released so far, Mr Aruna Kebira, Chief Dealer of Global View Capital Limited pointed out that performance was good despite the challenging year of 2020.
“As far as I’m concerned results released so far has been good. Even those that declared loss were better losses. They performed better in the Covid-19 year than the previous year without covid.
For instance, a company that declared a loss of about N1.3 billion in the year before covid-19, and it is now declaring of N300 million during the covid year means that they are doing better.
What we have seen so far is a pointer that the market is going to be good. The Monetary Policy Committee have retained key lending rates and are not likely to meet again till the end of March.
Going forward, investors coming to the market should be looking at dividend yield, not capital appreciation because every day we keep on seeing stocks doing 52 weeks high and nobody knows when they will top out”.
FBN Holdings Plc
The big elephant reported a Profit after Tax of N79.708 billion in the 12 month period of 2020, up by 8.20% compared to the profit of N73.665 billion reported in 2019. Earnings per share increased to N2.22 from the EPS of N2.05 which translates to 8.20% growth year on year.
At the share price of N7.6, the P.E ratio of FBNH stands at 3.42x with earnings yield of 29.22%.
Okomu Oil
Okomu Oil Palm Company Plc reported a turnover of N23.41 billion, up by 24.08% from N18.87 billion reported the previous year.
Profit after tax grew by 46.3% to N7.387 billion compared to the profit of N5.049 billion reported in 2019.
Earnings per share of the company increased to N7.74 from N5.29 which translates to 46.3% growth year on year.
At the share price of N93, the P.E ratio of Okomu Oil stands at 12.02x with earnings yield of 8.32%.
Stanbic IBTC
The Holding company reported a profit after tax of N83.211 billion, up by 10.9% from N75.035 post tax profit reported the previous year.
Earnings per share (EPS) increased to N7.49 from the EPS of N6.76 in 2019, and that translates to 10.90% growth year on year.
At the share price of N45, the P.E ratio of Stanbic IBTC stands at 6.01x with earnings yield of 16.65%.
Fidelity Bank
The Fidelity Bank in the 12 months period reported a Gross Earnings of N205.18 billion, down by 4.79% from the Gross Earnings of N215.5.
Profit after tax for the period under review was N28.03 billion, down by 1.38% from the post-tax profit of N28.43 billion reported in 2019.
Earnings per share (EPS) of the bank stands at N0.97, down by 1.38% from the EPS of N0.98 in 2019.
At the share price of N2.72, the P.E ratio of Fidelity Bank stands at 2.81x with earnings yield of 35.57%.
Ecobank
Ecobank reported N828.96 billion as Gross Earnings, down by 1.6% from the Gross Earnings of N842.49 billion reported in 2019.
Profit after tax for the 12 months period in 2020 was N35.88bn, down by 63.92% from the profit after tax of N99.46 billion declared in 2019.
Earnings per share (EPS) of the bank dropped to N1.96 from the EPS of N5.42 in 2019.
At the share price of N6.4, the P.E ratio of Ecobank stands at 3.27x with earnings yield of 30.56%.
Total Nigeria Plc
The Oil firm reported a turnover of N204.16 billion, down by 30.12% from the turnover of N292.18 billion reported in 2019.
Profit after tax for the 12 months period was N2.24 billion, down by 1.55% from the profit after tax of N2.279 billion achieved in 2019.
Earnings per share decreased by 1.55% year on year to N6.61 from the earnings per share of N6.71.
At the share price of N143, the P.E ratio of Total Nigeria Plc stands at 21.64x with earnings yield of 4.62%.
Berger Paints
Berger Paints Nigeria Plc reported a turnover of N3.83 billion, up by 6.86% from N3.58 billion reported in 2019.
Profit for the year 2020 was N104.72 million, down by 76.66% from N448.73 million achieved in 2019.
Earnings per share (EPS) of the firm dropped to N0.36 from the EPS of N1.55 reported the previous year.
At the share price of 8.05, the P.E ratio of Berger Paints Nigeria Plc stands at 22.28x with earnings yield of 4.49%.
Cadbury
Cadbury Nigeria Plc reported a turnover of N35.407 billion, down by 10% from the turnover of N39.327 million reported in 2019.
Profit after tax of N172.665 million was reported for the 12 months period, down by 84% from N1.07 billion achieved the previous year.
Earnings per share declined to 9 kobo from 57 kobo reported in 2019, which translates to 84% decline year on year.
At the share price of 9.6, the P.E ratio of Cadbury stands at 104.43x with earnings yield of 0.96%.
Livestock Feeds
Livestock Feeds reported significant growth in its top line and bottom line figures in 2020 when compared to 2019 reports.
The company grew its Profit after Tax by 232.97% to N354 million from N106 million achieved in 2019.
The earnings per share of the company increased to 12 kobo from 4 kobo in 2019, while the current period’s PE Ratio is at 21.94x and the earnings yield stands at 4.56% with a reference stock price of N2.59.
Chemical and Allied Products Plc
Chemical and Allied Products declared a turnover of N8.737 billion in year 2020, up by 4% from the previous close of N8.411 billion in 2019.
The Company reported a profit after tax (PAT) of N1.289 billion, down by 26.00% when compared with N1.742 billion recorded the period previous year.
Earnings per share for the period under review fell to 1.84 kobo from the previous earnings per share of 2.49 kobo in full year 2019.
With reference to the share price of N20.50, P.E ratio of CAP Plc stands at 11.13x with earnings yield of 8.98%.