Sunday 03 March 2019
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EquityMarket Dangote Cement, Zenith, NB top as proposed dividends rise to N371bn
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Stories by TELIAT SULE angote Cement, in continuation of its tradition of rewarding shareholders handsomely, has proposed to pay shareholders N16 per share for the financial year ended December 31, 2018. This has pushed the total dividend proposed by 10 listed firms between January and February 2019 to N371.4 billion, BusinessDay Dividend Monitor shows. Dangote Cement presently has 17.04 billion outstanding shares, implying that total dividend proposed stands at N272.6 billion, and thus accounted for 73 percent of the total dividends proposed by companies listed on the Nigerian Stock Exchange (NSE) in 2019. In the financial year that just ended, Africa’s market leader in cement production, Dangote Cement, raked in N901.2 billion as revenue representing 11.9 percent over N805.6 billion it realised in 2017. Gross profit rose by 14 percent from N454.3 billion in 2017 to N517.9 billion in 2018. Operating profit increased by 11.3 percent to N338.7 billion last year from N304.21 billion in 2017. Profit from operating activities trended upward to N338.7 billion, and that amounted to 3.9 percent increase when compared with N289.6 billion it made in 2017. Profit for the year jumped by 91 percent to N390.3 billion up from N204.4 billion in 2017. “On June 18,2019, dividends will be paid electronically to shareholders whose names appear on the register of members as at June 03, 2019 and who have completed the e-dividend registration and mandated the registrar to pay their dividends directly into their bank accounts”, Dangote management said. Other listed firms that have proposed dividends and bonuses include Neimeth Pharmaceutical International, Vitafoam, Newrest ASL, Transcorp Hotels, Nigerian Breweries and Transnational Corporation of Nigeria. Others are Zenith Bank, United Capital and Africa Prudential. Neimeth Pharmaceutical International proposed a bonus of 1 for 10 for its shareholders. Although the payment date is yet not be announced, ex-script date, 189.9 million additional shares will be added to its shares out-
standing which will rise to 2.089 billion. Zenith Bank in the course of the week proposed N2.50 dividend per share which amounted to N78.49 billion, representing 21 percent of the total dividends declared so far by companies listed on the NSE in 2019. The bank’s gross earnings experienced a decline by 15 percent to N630.3 billion as against N745.2 billion realised in the previous year. Notwithstanding, the adoption of various cost
NSE organises fixed income trading workshop for dealing members
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he Nigerian Stock Exchange (NSE) in line with its commitment to improve the capacity of its members and enhance investors’ participation in the fixed income market will be organizing a Fixed Income Workshop on Monday, March 4, 2019, at the Stock Exchange House. This workshop will bring together about 200 stockbrokers, dealing members and other key capital market stakeholders to explore
opportunities available in the fixed income market, as well as address the concerns and build the capacity of our members interested in trading fixed income on the Exchange. All fixed income securities (with the exception of zero-coupon bonds) provide some form of regular interest payments to investors. This makes the fixed income market especially attractive to investors whose main investment goal is providing themselves with a steady income.
saving measures positively impacted net interest income which increased by 14.6 percent from N257.9 billion in 2017 to N295.6 billion in 2018. Profit before tax of N231.7 billion in 2018 was better than N199.3 billion made in 2017 by 16.2 percent. Profit after tax was N193.42 billion in 2018 as against N173.8 billion in 2017 while the total comprehensive income of the year stood at N199.7 billion compared with 176.5 billion
realised in 2017. Zenith Bank expended N3.065 billion on different corporate social responsibility(CSR) projects in 2018, an increase of 17 percent over N2.611 billion spent in 2017 on similar projects. Among the notable beneficiaries are the states’ security trust funds which got N1.57 billion, sports organisations, N363 million; seed contribution to private health sector alliance, N305 million; the financial inclusion
projects of the Central Bank of Nigeria (CBN), N200 million, among others. Payment date is March 18, 2019. Furthermore, the Nigerian Breweries has proposed N1.83 dividend per share, which amounted to N14.6 billion income to shareholders, representing 3.9 percent of the proposed dividends by listed firms in 2019. While March 7 is the closure date, payment date has been slated for May 20, 2019. Sluggish economic growth which exacerbated the worsening unemployment situation in the country significantly affected Nigerian Breweries’ sales as total revenue slide by 4.26 percent from N350.2 billion in 2017 to N365.8 billion in 2018. Gross profit fell to N126.9 billion from N143.49 billion in 2017. Results from operating activities followed the same trend as it declined from N57.1 billion in 2017 to N36.9 billion in 2018. Profit before tax was N19.4 billion compared with N46.6 billion in 2017. Similarly, profit after tax was N19.4 billion as against N33.04 billion in 2017. Nigerian Breweries spent N57.5 million on different corporate social responsibility (CSR) projects in 2018, although that was much lower than N76.8 billion expended in 2017. Notable among the beneficiaries are the Federal Road Safety Commission (FRSC), N10.3 million, for the Don’t Drink and Drive Partnership; Community Primary School Umuezeani Enugu State, N15.6 million; Primary Health Centre Rehabilitation, Sokoto State, N7.2 million, among others. Africa Prudential realised N4.48 billion revenue in the year that just ended, an improvement over N3.32 billion made in similar period in 2017. Profit before tax was N2.39 billion in 2018 as against N2.06 billion in 2017. Profit after tax stood at N1.95 billion compared with N1.71 billion in 2017. The firm is to pay shareholders N1 billion dividends which amounted to 25 percent increase over N800 million paid in 2017. “The directors recommend to the shareholders, the payment of a gross dividend of N1,000,000,000.00 (One Billion) that is 50 Kobo per share payable to shareholders on the company’s register of members as at 13 March 2019. The dividend is subject to the deduction of appropriate withholding tax”, the company stated.
Dangote Cement appoints Guillaume Moyen as CFO
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a n g o t e Ce m e n t Pl c has announced the appointment of Guillaume Moyen as acting chief finance officer with effect from March 1, 2019. This is contained in the statement sent to the Nigerian Stock Exchange (NSE) which was authorised by Edward Imoedemhe, deputy company secretary. According to the release, Moyen is an accomplished professional strategic finance leader with over 20 years of experience in supporting investors and senior executive teams to successfully position
an enable organisation to seize profitable long-term growth opportunities in mature and emerging/ frontier market. “His professional career cuts across finance, risks management , governance, internal control, IT, and procurement , working in various sectors like construction and mining, manufacturing and engineering , consulting , nuclear energy solutions and ICT. Moyen’s appointment followed the resignation of Brian Egan as an executive director and chief financial officer with effect from February 28, 2019.
“Moyen has prodigious strategic , management and transformational change experience working in companies like Arewa/Orano, Group, and joining DCP from Ola Energy Group, a multi-billion Euros African Group where he was the group CFO/head finance”, Imoedemhe said. Moyen has MBA degree from Columbia Business School, New York, a chartered accountant (French Chartered Accountant Organisation, Paris, France) and a certified internal auditor from the Institute of Internal Auditors Florida, USA.