The first half of 2017 financial report statements for leading companies quoted on the Nigerian Stock Exchange, NSE, show significant rise in revenue and quantum leap in profits.
About 81 companies that have so far turned in their financial reports to the Exchange recorded cumulative turnover of N2.59 trillion, a 20 per cent increase compared to N2.16 trillion reported in H1’16.
The figure out-performed average inflation rate of 17.4 per cent during the period. But the profit before tax, PBT, of the companies witnessed astronomical growth within the six-month period, rising by 81.4 per cent to N572.83 billion against N315.8 billion recorded in H1’16, a huge head room above inflation rate.
Corporate Results
Breakdown of the corporate results showed the following:
- The pharmaceutical sector, which has been enjoying huge investors’ patronage on the stock exchange, came tops in term of percentage growth in revenue. The sector recorded 77 per cent rise to N11.84 billion from N6.69 billion in H1’16.
- This was followed by the consumer goods sector, which rose by 64.2 per cent to N364.82 billion from N222.21, while the agriculture sector came third with 58.6 per cent increase to N31.14 billion from N19.64 billion 2016.
- The oil and gas sector led revenue in absolute terms, as the sector’s earning rose to N656.513 billion in H1’17 from N493 billion, representing 33.1 per cent growth. The sector accounted for 25.3 per cent of the total turnover for the period.
- The banking sector trailed behind, pooling N653.5 billion against N604.02 billion recorded by the six banks that have so far released their results. However, the banking sector is projected to out-perform all other sectors when results of Tier-1 banks are released later this month. The Tier-1 banks that are yet to announce their results include Guaranty Trust Bank, Access Bank, Zenith Bank and United Bank for Africa (UBA). Only First Bank amongst the Tier-1 banks has announced H1’17 results. Yet the Tier-2 banks results accounted for 24.5 per cent of the total turnover during the period.
- The industrial goods sector placed third, posting N402.36 billion in revenue compared to N413.64 billion in the corresponding period in 2016, thereby accounting for 15.5 per cent of the total turnover.
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