• Tuesday, March 19, 2024
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BusinessDay

NB, Okomu, 3 others record mixed results as export rises to N13bn

Oil Palm

The analysis of the revenue of five listed firms by regions shows that export revenue rose by 12.38 percent in 2019, BusinessDay Research and Intelligence Unit’s (BRIU) findings have shown. The firms under consideration are the Nigerian Breweries, Beta Glass, Cadbury, CWG and Okomu Oil. These findings, supported by others yet to come will provide the assessment for the impact of the border closure being implemented by the Federal Government of Nigeria.

It should be noted that the firms under consideration represent a small number of companies in Nigeria that are involved in international trade, which means it is too early to base the overall impact of the border closure on the firms in this analysis.

The combined revenue of the five firms amounted to N420.69 billion in 2019, a paltry 1.45 percent increase over N414.70 billion made in 2018, with most of the growth coming from overseas revenues.

“Total trade grew by 6.8 percent in Q3,2019 compared to Q2,2019 and 1.33 percent relative to Q3, 2018.The value of total exports in Q3, 2019 increased by 15.02 percent compared to the level recorded in Q2, 2019 and 8.97 percent when compared with its value in Q3, 2018.- The value of agricultural exports decreased by 42.69 percent in Q3 2019 relative to Q2, 2019 and 7.30 percent when compared to Q3, 2018”, Nigeria’s data agency, the National Bureau of Statistics (NBS) announced last year.

By region or geography, the five firms collectively made 97 percent of their revenue from Nigeria whereas revenue from offshore accounted for 3 percent. Individually, some firms recorded mixed results between the revenue made locally and outside the country.

Nigerian Breweries’ local revenue remained flat at N322.81 billion in 2019 whereas in 2018, the brewery giant made N324.20 billion. On the export sector, its revenue grew by 4.22 percent to N198.52 million, up from N190.48 million in the previous year.

Beta Glass’ revenue from export grew the most by 52.16 percent while local revenue was up by 9.09 percent. Beta Glass realised N29.41 billion revenue in 2019 split into N29.64 billion from the local economy and N2.47 billion from offshore. In 2018, the manufacturing giant made N24.7 billion from the local economy whereas N1.62 billion came in as foreign receipts.

Jus like Nigerian Breweries, growth in Cadbury’s revenue by region was mix. Revenue from Nigeria grew by 10.98 percent from N31.04 billion in 2018 to N34.44 billion in 2019. On the contrary, export earnings slide by 1.12 percent to N4.88 billion in 2019 as against N4.94 billion made from export in similar period in 2018.

CWG Plc saw its revenues from local and offshore grow by 17.44 percent and 31.10 percent respectively. Revenue from Nigeria amounted to N7.07 billion last year up from N6.02 billion in 2018. Similarly, revenue from overseas rose to N2.28 billion in 2019 from N1.74 billion in 2018.

Okomu’s trend was similar to that of the Nigerian Breweries in the sense that its local revenue fell by 4.20 percent to N16.61 billion in 2019 down from N17.34 billion in 2018 whereas its foreign receipts rose by 2.49 percent from N2.92 billion in 2018 to N2.99 billion in 2019.

 

TELIAT SULE