Nigeria Content Online

The numbers of
quoted companies posting positive financial results at the Nigerian
Stock Exchange have continued to increase in figures.

Compared to last
year’s performance of some companies, where most of them posted
negative results, about 55 companies out of the over 80 companies that
have submitted financial results at the Exchange this quarter recorded
profits.

Market watchers had
predicted early this quarter that more quoted companies, particularly
the banks, will return to profitability in their financial reports on
the back of the improved state of the nation’s economy.

Stockbrokers at GTI
Capital, a stock broking firm, also said that the recent streak of
positive earnings emanating from quoted firms has continued to “add-up
enthusiasm to the market.” “Despite the fact that the market has been
in oscillatory trend as a result of periodic profit taking, volume of
transaction confirms intensified interest from the investing public,”
the firm stated. “In response to positive earnings reported in the
market, indicators grew northward (upward).”

Recent results

Nigerian Breweries’
unaudited result for the first quarter ended 31st March 2011 shows a
turnover of N52.029 billion as against N40.574 billion in the
comparable period of 2010. Profit after tax stood at N7.919 billion
compared with that of N6.456 billion in 2010.

Also, UAC Nigeria’s
unaudited result for the first quarter ended 31st March 2011 shows a
turnover of N12.533 billion, as against N10.912 billion in the
comparable period of 2010. The company’s profit after tax and minority
interest stood at N464.3 million compared with that of N422.09 million
in 2010.

In the unaudited
result of Nigerian Bottling Company, for the first quarter ended 31st
March 2011, the company recorded a turnover of N29.144 billion as
against N26.787 billion in the comparable period of 2010. Profit after
tax stood at N331 million compared with that of N241 million in 2010.
Oceanic Bank’s unaudited result for the first quarter ended 31st March
2011 shows gross earnings of N27.173 billion as against N30.351 billion
in the comparable period of 2010. The bank’s profit after tax stood at
N1.902 billion, compared with that of N1.676 billion in 2010.

Adesoji Solanke, a bank analyst at Renaissance Capital, an
investment bank, said Oceanic Bank financial results showed that the
company is returning to profitability though it is still evident that
the bank’s performance is “lethargic; as it experienced massive
write-back and recovery last year.” “Going forward, we believe
investors’ focus for these banks should be to see whether the yield
from their asset mix currently dominated with liquid assets, would be
adequate enough to cover their operating and regulatory expenses,” he
said. “We expect 2011 to be mixed in terms of financial performance
across the intervened banks space, but with an incremental
profitability run-rate through the quarters.”