Africa Prudential Plc (AFRIPRUD) announced its Unaudited Financial Statements for the period ended June 30, 2019, With a Gross Earnings of N2.01 Billion and Profit Before Tax of N1.21 Billion. The Company delivered an annualized Earnings Per Share of 1.03 Kobo.
KEY PERFORMANCE HIGHLIGHT:
A Quarter-On-Quarter Analysis showed the following;
Income Statement:
- Revenue from contracts with customers: N0.60 Billion, compared to N0.27 Billion in Q1 2019 (118% QoQ Increase);
- Interest Income: N0.54 Billion, compared to N0.60 Billion in Q1 2019 (9% QoQ Decline)
- Gross Earnings: N1.14 Billion, compared to N0.87 Billion in Q1 2019 (31% QoQ Increase);
- Profit Before Tax: N0.63 Billion, compared to N0.45 Billion in Q1 2019 (40% QoQ Increase);
- Profit After Tax: N0.52 Billion, compared to N0.38 Billion in Q1 2019 (37% QoQ Increase);
While a further Year-On-Year Analysis showed the following;
- Revenue from contracts with customers: N0.87 Billion, compared to N0.59 Billion in HY 2018 (47% YoY Increase);
- Interest Income: N1.14 Billion, compared to N1.58 Billion in HY 2018 (28% YoY Decline)
- Gross Earnings: N2.01 Billion, compared to N2.17 Billion in HY 2018 (7% YoY Decline);
- Profit Before Tax: N1.21 Billion, compared to N1.14 Billion in HY 2018 (6% YoY Increase);
- Profit After Tax: N1.03 Billion, compared to N0.99 Billion in HY 2018 (4% YoY Increase);
Balance Sheet:
- Total Assets: N21.93 Billion, compared to N21.27 Billion as at FY 2018 (3% YTD growth);
- Total Liabilities: N13.35 Billion, compared to N12.68 Billion as at FY 2018 (5% YTD growth);
- Shareholders’ Funds: N8.58 Billion, declining marginally by 0.2% YTD.
Commenting on the result, The Managing Director/CEO of Africa Prudential, Mr. Obong Idiong, had this to say; “This quarter is one of the promises delivered. Last quarter, we declared our commitment to improving our future performance by implementing various strategic initiatives aimed at enhancing our various Strategic Business Units (SBUs) for optimal value creation to our clients. During the quarter, we commenced our digital transformation process to transform customer experience across our various businesses. In our Digital Technology SBU, we are strategically positioning ourselves to continuously deliver a best-in-class experience to our clients through our array of innovative products offerings. This initiative no doubt has started trickling down into our numbers as we achieved a resounding 16,035% growth in income from our digital technology business during the period under review with the bulk of it coming in, in Q2 2019. The coming quarters would see us unveil two new innovative products in the digital technology space to deliver great value to our clients both within and outside the capital market space. These products have been carefully researched and crafted to bring solutions to individuals and businesses. We expect an even better performance going forward. We would continue to explore the numerous opportunities in the digital technology space while further deepening our play in the registrars business”.
Comparing HY 2019 to HY 2018, we observed the following key items of note:
- Revenue from contracts with customers: During the period under review, Revenue from contracts with customers ramped up 47% year-on-year on the back of a 95% increase in retainership fees, as well as increases experienced in revenue from register maintenance (17%) and the considerable appreciation of the income from our Digital Technology (16,035%) operations.
- Profit before Taxation: PBT as at HY 2019 increased by 6% as against that of HY 2018 due to a 76% year-on-year reduction in Finance Cost, as a result, our borrowing which was paid down in Q1 2019.
- Returns on Average Assets: A year-on-year analysis of this showed that we were able to effectively utilize our assets to generate more returns compared to HY 2018 where we saw the metric print at 8% against the 10% recorded in HY 2019.
- Interest Income: Within the review period, interest income was dragged down 28% as a result of the loan pays off and decline in interest on T-bills and bonds, which was due to the fall in the interest rate on T-bills and government bonds.
Mr. Obong Idiong MD/CEO further reiterated that; “While the global economic landscape is faced with the impacts of the escalating trade wars, and domestic business activities slowly picking up pace after the general elections in Q1 2019, we are focused on creating optimal value to our clients and other stakeholders”. ‘
Notice of HY 2019 Analyst Parley and Product launch: Sequel to the release of our HY 2019 result, we would be hosting an Analyst Parley event for all our stakeholders and Analysts, Further information would be circulated to all in due course.
