Early second-quarter results show that six out of eight listed firms on the Nigerian Exchange Limited recorded an improvement in their earnings despite the tough operating environment.
The companies are United Capital Plc, Unilever Nigeria Plc, Multiverse Mining and Exploration Plc, LivingTrust Mortgage Bank Plc, Champion Breweries Plc, and Geregu Power Plc.
BusinessDay analysis of the firms’ financial statements shows that their combined after-tax profit rose to N12 billion in Q2, a 48 percent rise from N8.1 billion in the same period of 2023.
Geregu Power reported the highest profit of N5.51 billion in Q2, followed by United Capital with N4.15 billion. Unilever Nigeria had N1.08 billion, Multiverse Mining and Exploration posted N69 million, Champion Breweries recorded N437 million and LivingTrust Mortgage Bank had N193 million.
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UPDC’s loss narrowed to N48 million in Q2 from N73 million in Q1, while Secure Electronic Technology posted a loss of N28 million from N3 million profit.
Analysis of individual firms
Geregu Power
Geregu Power, a Nigerian power-generating firm, after-tax profit rose to N5.51 billion in Q2 from N4.51 billion in the same period of last year.
The company’s revenue rose to N30 billion from N20 billion aided by energy sales.
During the reviewed periods, its finance income rose to N2.16 billion from N1.8 billion and its finance cost fell to N2.5 billion from N3 billion.
The firm’s earnings per share rose to N2.22 from N1.8.
United Capital
The after-tax profit of United Capital Plc, an investment company, increased to N4.15 billion in Q2 from N2.24 billion in the same period of last year.
The firm’s gross earnings rose by 61 percent to N9.3 billion from N5.8 billion. Trading income rose by 399 percent to N1.5 billion.
During the reviewed period its operating income rose to N8.4 billion from N4.3 billion while operating expenses surged by 43 percent to N4.4 billion.
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Unilever Nigeria
Unilever Nigeria, a fast-moving consumer goods firm, after-tax profit rose to N1.08 billion from N91 million during the reviewed period.
The company’s revenue rose to N31 billion from N24 billion.
During the reviewed periods, its finance income rose to N2.1 billion from N1.3 billion and its finance cost fell to N207 million from N1.4 billion.
The firm’s earnings per share rose to N0.22 kobo from N0.19 kobo.
Multiverse Mining and Exploration
Multiverse Mining and Exploration, a mining company in Lagos, reported an increase in its after-tax profit to N69 million in Q2 from N23 million in the same period of last year.
The company’s revenue rose to N178 million from N124 million.
During the reviewed periods, its operating profit rose to N90 million from N47 million and its finance cost fell to N21 million from N24 million.
The firm’s earnings per share rose to N0.16 kobo from N0.06 kobo.
Champion Breweries
Champion Breweries, a brewery company in Nigeria, has recorded a 248 percent growth in its earnings to N437 million in Q2 from N126 million in the same period in 2023.
Its revenue surged to N5.17 billion in Q2 from N3.12 billion in the same period of 2023.
The company’s finance cost dipped to N6.69 million in the second quarter from N15.8 million in the same period of 2023 while income tax also dipped to N28.2 million from N57.4 million.
Earnings per share increased to N5.58 in the second quarter from N1.60 in the same period of 2023.
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LivingTrust Mortgage Bank
LivingTrust Mortgage Bank, a financial service institution in Nigeria, after-tax profit increased to N193 million in Q2 from N107 million in the same period of last year.
The firm’s gross earnings rose to N890 million from N660 million. Total operating income rose to N566 million from N451 million.
Its operating expenses rose to N309 million during the reviewed periods from N288 million.
The financial institution’s earnings per share increased to N3.86 in the second quarter from N2.15 in the same period of 2023.
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