ExperientialNG Holds Free Strategic Training Programme for Top Executives in Africa

Esan Bolaji
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ExperientialNG Holds Free Strategic Training Programme for Top Executives in Africa

ExperientialNG, in line with her goal of providing world-class professional dynamic capabilities to Marketing professionals across Africa, would be organising free Strategic training sessions for top African Executives.

It is a programme, in the words of Dr Rotimi Olaniyan, founder and Publisher of ExperientialNG, “marketing or services leader would wish to miss”.

Rotimi-Olaniyan Brand spur ExperientialNG Holds Free Strategic Training Programme for Top Executives in Africa
Rotimi Olaniyan | Brand Spur Nigeria

The executive learning sessions would be delivered via ZOOM on May 1, a public holiday in most African countries also tagged workers day. From the quality of registration so far, the programme is poised to witness a unique assemblage of senior executives, and accomplished leaders in sales and marketing, as well as marketing and creative services agencies.

From the highlights given by the organisers, the programme would be a half-day of World-Class Professional Marketing discourse and practical conversations.

The discussants are expected to showcase valuable learning content from the academy’s forthcoming Management & Leadership Skills Development Series, which is an initiative intended to help deepen workplace skills for firms looking to drive strategic advantages and growth through innovation, strategic thinking, top-notch research and practical commercial leadership.

According to Dr Olaniyan, this session is still the academy’s premium master class though free, so it is only open to a select group of attendees that meet the academy’s criteria for relevance, potential impact and contribution.

The three principal speakers for the May 1 programme are Stuart Hamilton, Austin Ufomba and Rotimi Olaniyan.

Stuart Hamilton is an international business and trade development specialist with over 40 years of experience across multiple sectors, with specific involvement in construction, oil & gas and IT. He has a strong background in international trade and in tendering for large contracts.

STUART HAMILTON Brand spur ExperientialNG Holds Free Strategic Training Programme for Top Executives in Africa
STUART HAMILTON | Brand Spur Nigeria

He currently oversees Business Development and trade missions for the Scottish Chambers of Commerce which is a coalition of over 30 chambers of commerce with a membership made up of 12,000 companies including some of Europe’s most successful companies. In addition to this, he is a commercial leadership trainer and consultant, working with small and medium-sized firms focussed on achieving breakthrough transformation.

Stuart shall be speaking on the realities of practical commercial leadership, with lessons that can be learnt from European growth firms.

Austin Ufomba currently serves as CEO of the Tytron Group with interests in real estate, mining and manufacturing. He has over 24 years of professional and diverse working experience in Sales, Marketing, Strategy, General Management, Public-Private Partnership, Business Advisory, Project Management spread across diverse career experience including Fast Moving Consumer Goods (FMCG), Banking and the Public Sector.

AUSTIN UFUMBA Brand spur ExperientialNG Holds Free Strategic Training Programme for Top Executives in Africa
AUSTIN UFUMBA | Brand Spur Nigeria

He has served as Marketing Director at Coca-Cola Nigeria as well as Guinness Nigeria Plc, (A Diageo Company) two of Nigeria’s most prestigious consumer marketing companies. Austin shall be speaking on the imperatives of strategic thinking for today’s marketing leaders.

Dr Rotimi Olaniyan is the founder and Publisher of ExperientialNG, which is set up to serve as a capacity development and resource platform for practitioners and firms playing in the marketing and allied services space. He has over 32 years of commercial experience across four countries working for firms such as Colgate-Palmolive.

Between 2000 and 2017 he served as an agency head and Managing Director of three marketing services firms including Proximity which he founded. He also sat on the board of Paga, a mobile money company. His work currently has him straddling both the UK and Nigeria.

He currently serves as a senior member of the Marketing Faculty at Nottingham Business School where he leads the full-time MBA course and conducts research in the field of Entrepreneurial and Services marketing. He is also Principal at Apex Advisors, UK an independent consultancy with commissions in the UK and Nigeria.

Rotimi shall be speaking on how to develop learning organisations and prepare future commercial leaders as reflective practitioners.

Dr Olaniyan also stressed that the May 1st webinar will hold from 9.00 am to 12 noon. Joining instructions to the ZOOM platform would be sent to registered participants 48 hours to the sessions.

Although it is a free master class, attendance is still subject to terms and conditions, so prospective participants are please requested to click the link below for registration.

INVITATIONS & ENQUIRIES

Find Current and Updated Ripple Prices

Esan Bolaji
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Find Current and Updated Ripple Prices

With the internet, the world has gotten a lot smaller in the sense that trading with other countries is easier than it ever has been.

Whether you are working with a business or privately, the exchange of cash and digital goods can be done within a matter of moments, even if it is going overseas and over borders.

Cryptocurrency aims to make these processes even easier and offers more security, which is why many think the future of cash is going to be digital for all forms of transactions.

Find Current and Updated Ripple Prices

One aspect of cryptocurrency that is vital in trading over borders is Ripple, which is also known as XRP.

What is Ripple (XRP)?

Ripple is a form of technology that was created in an attempt to revolutionize over-border trading, and it is a key aspect of cryptocurrency.

This technology brand has a range of products and services which can be used to streamline the global payment or trading market, and this includes XRP.

The XRP Ledger is part of Ripple's line of services, and this an open-source ledger database that is decentralized, which means it is not controlled in the same manner as other trades, which are usually overseen by banks or governmental bodies.

Using the XRP Ledger can make payments incredibly fast, no matter how much is being transferred or where it is going. It is reported that payments are made within less than 4 seconds using this technology, so it is clear to see what the benefits are of this program.

XRP is the first asset of the XRP Ledger and is the digital token which powers RippleNet, the overall database of these products. As the native service, XRP has so many benefits and remains to be faster, cheaper, and more scalable than other products by this technology which is why it is best for international transactions.

How To Use XRP

Cryptocurrencies like Bitcoin can be used all over the world, which is why they are a great asset to trade.

This kind of transaction is made to be faster and more secure than any other currency, yet programs like XRP from Ripple can improve this process even more. If you are interested in trading or want to spend cryptocurrencies on a global scale, then you will benefit from XRP programming.

XRP has lots of benefits, including the speed at which it allows cross-border transactions, but it is also very scalable, which makes it attractive and beneficial for a range of purposes.

This product consistently manages 1,500 transactions per second, and it can be scaled to 65,000 or more transactions per second if required. This makes it highly efficient and an excellent program to use with cryptocurrency trading.

Can I Buy XRP?

XRP can help with the trading and everyday transactions of cryptocurrency when this is mainly being used across borders.

It can be purchased through Swyftx, which is an online currency exchange platform that handles cryptocurrency and can be used internationally. The trading and exchange of cryptocurrency can be done through this platform, and it is very easy to complete.

If you are interested in buying XRP, view the current XRP price here.

As with all other forms of currency, the exchange rates fluctuate on Swyftx. Even though this app offers the lowest rates and smallest spread, the rates that change can impact how much it will cost to buy XRP.

Swyftx offers updated exchange rates and will provide the most current prices on all of their products, including XRP and other forms of cryptocurrency.

It is very easy to buy all forms of cryptocurrency and assisting programs with this app. An account can be made within minutes, and following the verification process, deposits can be made to your account.

Deposits of up to 50K in your currency can be made into your account, which can then be used for trading or exchanges.

Swyftx is a trading platform as well and allows for all those handling cryptocurrency to get the best rates no matter how they choose to use it.

The benefits of Swyftx include the security and speed of all transactions, as well as the vast array of digital assets available to trade.

Polaris Bank Reports 4% Rise in Profit After Tax to ₦28.5Bn in 2020

Esan Bolaji
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Polaris Bank Reports 4% Rise in Profit After Tax to ₦28.5Bn in 2020
  • Records 4% increase in Profit Before Tax (PBT) and Profit After Tax (PAT) respectively Year-on-Year despite challenging business environment
  • …Assets hit N2tr and ROA of 2.4%
  • Performance indicates management depth and sustainability

Polaris Bank Limited has released its full-year audited financial results for the year ended December 2020 posting a Profit Before Tax (PBT) of N28.9billion. The results which show the Bank’s second-year performance scorecard after two years of operation have further consolidated the Bank’s position as focused on the path of profitability, growth, and value creation.

Polaris Bank Sustains Profit Growth with N28.9bn (PBT) in 2020 financial year Brand spur nigeria

Details of the results show that its year 2020 performance reflects a 4% Year on Year (YoY) increase in Profit before Tax (PBT). The performance according to the financial statements is driven by the combination of the significant reduction in interest expense due to the Bank’s pursuit of low interest-bearing deposits as well as lowering impairment charges on loans and other financial assets.

Polaris Bank recorded Return on Asset (ROA) and Return on Equity (ROE) of 2.4% and 29.4% respectively which favourably place the Bank as a key player in the industry. The Bank’s Total Assets stood at N1.18trillion, a 3% growth on the previous year while Shareholders Funds grew by N14billion (17%), largely attributable to internally generated profits.

The Bank increased its Customer Deposits by N56billion, predominantly low-cost deposits in spite of difficult economic and industry conditions, and increased its gross loan book by N38biilion reflecting the Bank’s modest and prudent risk strategy to grow its Portfolio of Quality loans for optimal interest income generation.

Commenting on the Bank’s performance, the Managing Director/Chief Executive Officer (MD/CEO) of Polaris Bank Limited, Mr. Innocent C. Ike who took over in the course of the year from Mr. (now Senator) Tokunbo Abiru explained that

“Polaris Bank has achieved significant milestones since its inception in September 21, 2018 when we started this journey. We have since grown to earn the confidence of the banking public, offering quality banking services at the cutting edge of technology”.

POLARIS BANK ANNOUNCES THE APPOINTMENT OF INNOCENT C. IKE AS ACTING MANAGING DIRECTOR/CEO
Mr. Innocent C. Ike, Acting Managing Director/CEO, Polaris Bank | www.wordpress-1516176-5827464.cloudwaysapps.com

Continuing, he noted,

“2020 was arguably the most challenging year that the world has faced in decades owing to the negative impact of COVID-19 on businesses and the economy. Yet, the current result demonstrates the importance of the deployment of appropriate strategies, and effectively validates our recent investment in technology solutions and digitization of our products and processes,”.

He explained that the Bank’s subsisting three-year Corporate Transformation Plan has recently been reviewed in line with the changing operating environment and trend dynamism for sustainable value creation. Digital transformation remains one of the potent strategies to strengthen the Bank’s balance sheet, control costs, and improve processes while providing clients with wider self-service offerings.

In the view of some financial analysts, Polaris Bank’s remarkable achievements in 2020 are a testament to her consolidation of its 2019 performance, the relevance of the Bank’s new Corporate Strategy, management depth and good Corporate Governance.

The Board and Management of Polaris Bank have demonstrated a strong commitment towards professionalism and business ethics by upholding sound risk management practices and proactively taking measures to ensure the Bank is on the path of value creation and sustainability.

Polaris Bank’s performance in FY’20 reflects commendable improvements in key performance indicators, assuring a strong positive outlook for earnings, margins and profitability, a cautious pursuit of loan growth, a sustained strategy for operational efficiency, funding cost optimization, and efficiency deposit mix. The headroom for loan creation no doubt presents an opportunity for improved margins.

Going into the year 2021 and despite the challenging macroeconomic environment, the Bank is poised to reap the benefits of its investment in both digitization and the capacity of its employees to improve service experience.

Polaris Bank is a future-determining bank committed to delivering industry-defining products, services, and digital platforms across all the sectors of the Nigerian economy. The Bank is a member of the United Nations Environment Programme Finance Initiative (UNEP FI), which seeks to engage the private sector and the global financial sector to help create a financial sector that serves people and the planet while delivering positive impact.

Nigerian Idol: 17 Contestants Advance To The Next Round of Theatre Week

Esan Bolaji
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Nigerian Idol: 17 Contestants Advance To The Next Round of Theatre Week

Nigerian Idol: 17 Contestants Advance To The Next Round of Theatre Week…as ‘Wooden Mic’ Competition is staged for Worst Auditions

Lagos, Nigeria; 26 April 2021: Auditions in the ongoing Nigerian Idol season 6 competition have featured the good, bad and unbelievable singing talents across the country.

Last Sunday’s Theatre Week episode saw 17 out of 68 contestants progress to the next round of the Nigerian Idol competition. As viewers wait with bated breaths to see which contestants will make the top 10, organizers have announced a special twist to the season called the ‘Wooden Mic’ competition.

Nigerian Idol Theatre Week Begins With 17 Contestants Advancing To The Next Round

Wooden Mic is an alternative competition to the singing talent show dedicated to the contestants who were not selected by the judges during their auditions due to their inability to showcase an actual singing talent. A shortlist of these contestants who didn’t make it to the Theatre Week will contend for the Wooden Mic title, with the winner decided by the public.

Here’s how to make your selections:

  • Go to the video page on the official Nigerian Idol website – www.africamagic.tv/nigerianidol
  • On the website, select the ‘Wooden Mic’ menu option.
  • Watch the 40 Wooden Mic finalists.
  • Select your favourite on our website or our mobi site ONLY. (Please note that the selection is open to everyone and each person gets 10 selections per platform. This is not a voting process, so SMS and the MyDStv/MyGOtv app voting are not required).

The Wooden Mic competition opened on Sunday, April 25 and will run till Wednesday, June 30, 2021.

Nigerian Idol season 6 is sponsored by Bigi Drinks and Tecno Mobile. The show is available to customers on DStv Premium, Compact Plus, Compact, Confam, Yanga and GOtv Max and Jolli. Visit www.dstvafrica.com or www.gotvafrica.com and download MyDStv or MyGOtv Apps to pay your subscription or switch your package.

Keep up with the show via the DStv app on multiple devices at no additional cost. The app is available for download on iOS and Android devices. For more information, visit www.africamagic.tv/nigerianidol, and follow the official Nigerian Idol social media pages for news and updates with the hashtag #NigerianIdol on Twitter @nigerianidol, Instagram @nigerianidol and Facebook www.facebook.com/nigidol

WEMA Bank Proposes 3rd Consecutive Dividend Payment And Closes with N1Trillion Balance Sheet Size

Esan Bolaji
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WEMA Bank Proposes 3rd Consecutive Dividend Payment And Closes with N1Trillion Balance Sheet Size

WEMA Bank Plc proposes 3rd consecutive dividend payment and closes with N1trillion Balance sheet size; releases results for the full year ended 31 December 2020.

26th April 2021 – Wema Bank PLC announces its audited results for the year ended 31st December 2020.

The Chief Finance Officer, Tunde Mabawonku gave the following updates:

“The Bank weathered the disruptions of the 2020 Financial Year through a sharp focus on safe lending, keeping NPLs low and driving transaction income. The Bank remains resilient and has continued to grow its business in an efficient manner as we persist in adapting our strategy to yield strong financial results despite the adverse economic situation”.

Wema Bank Hosts Webinar To Mark IWD 2021
Wema Bank Hosts Webinar To Mark IWD 2021

The Bank recorded a y/y double-digit growth of 39.42% in Customer Deposit (FY 2020; N804.87billion, FY 2019; N577.28billion). Net Loans closed at N360.08billion, a growth of 24.49% (FY 2019; N289.24billion), as the bank continues to support its customers across multiple sectors of the economy.

Non-Performing Loans (NPL) was pushed down to 4.70% y/y from 7.38% in FY 2019.  The Bank closed with Total Assets and Contingents of over N1trillion naira.

The bank has proposed a dividend of 4kobo per share in FY 2020 (FY 2019: 4kobo). This will be the 3rd straight year that the bank has paid dividends.

According to Mabawonku, “We have a clear strategy of becoming the “Most Dominant Digital Bank in Nigeria” by 2023.  We have positioned ALAT as the go-to platform by both increasing customer acquisition and working with eco-system partners on payments and settlements.

During the year, Wema Bank was ranked 2nd in the Retail Category and 6th in the SME category in the 2020 KPMG Customer Satisfaction Survey. The bank also received an award for the Best SME Bank of the Year for 2020 from BusinessDay, thus recognizing Wema Bank’s continuous support for small and medium scale businesses through loans, business advisory and innovative payments & collections support.

Financial Performance Highlights for Full Year ended 31 December 2020.

Income statement (N’bn) FY 2020 FY 2019 (%∆)
Gross Earnings 81.38 94.89 -14.24%
Net Interest Income 30.85 25.99 18.72%
Profit before Tax 5.93 6.76 -12.25%
Earnings Per Share 11.90 kobo 13.50 kobo -11.85%

 

Balance Sheet (N’bn) FY 2020 FY 2019 (%∆)
Total Assets 979.52 715.87 36.83%
Loans and Advances(net) 360.08 289.24 24.49%
Deposits 804.87 577.28 39.42%
Shareholders’ Funds 59.14 55.16 7.22%

 

Key Ratios (in %) FY 2020 FY 2019
Return on Average Equity 10.03 14.71
Return on Average Asset 0.61 1.02
Net Interest Margin 5.74 6.04
Yield on Asset 12.01 16.47
Capital Adequacy Ratio 15.05 13.60
Liquidity Ratio 31.04 32.37
Loan-to-Deposit Ratio 43.24 48.61
Non-Performing Loans Ratio 4.70 7.38
Cost to Income Ratio 85.89 84.66

 

Financial Performance Review for Full Year ended 31, December 2020.

Income Statement

  • Gross Earning of N38billion, a decline of 14.24% YoY (FY’2019 N94.89billion), driven by a low-interest-rate environment on both fixed income and other financial instruments.
  • Profit Before Tax (PBT) of N93billion, a decline of 12.25% YoY from N6.76billion in FY 2019.
  • Non-Interest Income of N83billion, a decline of 30.48% (FY’2019; N24.21billion), drivers are drop in trading and foreign exchange income.

Statement of Financial Position

  • Customer Deposit Increased by 42% YTD to N804.87billion from N577.28billion in FY 2019.
  • Net Loans and Advances of N08billion, a YTD growth of 24.49% (FY 2019; N289.24billion).
  • Total Asset grew by 38% to N979.52billion (N715.87billion in FY 2019).

World Bank Reveals How Much FG Spends Annually On Power Tariff Shortfalls

Brand Spur
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World Bank Reveals How Much FG Spends Annually On Power Tariff Shortfalls

The Federal Government of Nigeria is spending $1.5bn (N568.5bn at N379/$ exchange rate) annually to fund electricity tariff shortfalls, the World Bank has said.

According to the global financial institution, this amount could further increase if the country fails to take the right action.

The bank disclosed this in its enlarged report on Nigeria Power Sector Recovery Programme obtained by our correspondent in Abuja on Sunday.

“FGN (Federal Government of Nigeria) is spending $1.5bn per year to fund tariff shortfalls and this could continue to rise if action isn’t taken,” the bank stated in the document.

The World Bank said Nigeria’s power sector was operationally inefficient with unreliable supply exacerbated by high losses and lack of payment discipline.

Picking on the various arms of the sector, the bank stated that power generation was characterized by high non-available capacity due to the fact that many plants were out on fault, damage, maintenance, major overhaul, etc.

“Gas and transmission constraints lead to non-operational capacity. Resolving policy/regulatory challenges and Disco (distribution companies) issues are key to free up stranded capacity,” the bank stated.

In the transmission sector, the bank said infrastructure in this arm of the industry remained inadequate and congested, stressing that investments in upgrades and maintenance were required.

In the power distribution arm, the bank observed that the Discos on average currently report 50 per cent Average Technical Commercial and Collection losses.

It said this was far above the less than 15 per cent international good practice and the 26 per cent that was allowed in the sector’s Multi-Year Tariff Order.

The bank said, “For every ₦10 worth of electricity received by Discos, ₦2.50 was lost due to energy theft and poor distribution infrastructure.

“This reflects low investments in distribution networks and metering creating lingering liquidity challenges.”

On the policy and regulatory environment, the bank stated that there had been the inconsistent implementation of tariff regulation, enforcement of market contracts, and policy direction.

It said Discos on average reported 50 per cent ATC&C losses which meant that only half of the energy generated led to collected revenue.

The bank stated that the capital expenditure allowance for all 11 Discos combined was N56bn and that this was far below what was needed.

On electricity access, the bank stated that Nigeria now had the largest number of un-electrified people globally and the trend was worsening.

It noted that of the electrified, the supply was very unreliable with widespread blackouts.

It stated that a holistic approach was necessary to address the power sector situation in a sustainable manner.

The bank, however, stated that it had proposed engagement to help address the concerns in Nigeria’s power sector.

It said the proposed engagement under two streams was aimed to provide holistic support for addressing key challenges through results-based lending.

 

Why We Continue To Produce World-Class Products — Rite Foods MD

Esan Bolaji
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Why We Continue To Produce World-Class Products — Rite Foods MD

Rite Foods Limited, a truly world-class and proudly Nigerian food and beverage company has stated that it will continue to produce world-class products for the benefit of its consumers, through the possibility of the state-of-the-art infrastructure and up-to-the-minute technology deployed in its production factory.

This was the submission of the Company’s Managing Director, Mr. Seleem Adegunwa, at the recent Rite Foods Brand Academy organized for content drivers at its first-rate factory at Ososa, Ogun State, where he said the company which started with a humble beginning has set the pace for others in the industry through unique brands that are proven to be unrivaled by consumers.

He said the rapid success of the indigenous company can be attributed to its quality consciousness and technological advancement it has attained.

Adegunwa affirmed that the company’s exceptional brands are produced with machinery that are the best from across the world, thus ensuring the most hygienic and global standard it has maintained since inception.

On a tour of the infrastructure, the content drivers were inundated with the Nigerianess and “I CAN, I AM” mantra of Rite Foods.

They were also amazed at the up-to-date technology installed in the factory, which is automated with little or no – human interference, with artificial intelligence at all phases of the production processes,  thereby ensuring the delivery of quality products at optimum capacity.

The Rite Foods MD explained that the factory generates its own source of electricity via the largest solar plant in West Africa, alongside its usage of gas and diesel induced plant connected to the National Grid that facilitates seamless, uninterrupted power supply to the highly sensitive, sophisticated technology infrastructure.

According to him, the global approach was induced to enable the company to deliver unparalleled brands to meet consumers’ expectations, which according to market survey, has been surpassed, with the largest market share in the sausage and beverage sector of the Nigerian economy.

Established in 2007, Rite Foods Limited is a subsidiary of Ess-Ay Holdings.

Its sausage brands have been the mark of excellence for the industry with the Rite Spicy, Bigi Beef, and Rite Sausages.

On the company’s stables are the 12 leading Bigi soft drink variants which include the Bigi Cola, Bigi Orange, Bigi Apple, Bigi Bitter Lemon, Bigi Soda Water, Bigi Lemon & Lime, Bigi Tropical, Bigi Chapman, Bigi Tamarind, Bigi Cherry Cola, Bigi Ginger Lemon, and the Bigi Ginger Ale.

Its Bigi Premium Table Water, which is produced with global best practices in purification, offers quality, freshness, confidence, and reliability.

Rite Foods’ inventiveness has earned high recognition in the energy drinks market with the first-ever packaged polyethylene terephthalate (PET) bottle brands for the Fearless Red Berry and Fearless Classic.

The effort of Rite Foods in setting up such superlative factories was highly commended by the Vice President, Prof. Yemi Osinbajo when he visited the place. He said, “This is a testament to the true Nigerian spirit of hard work, bold entrepreneurship, and commitment to world class standards.”

The leading company has also made inroads into the entertainment industry with the sponsorship of the Prophetess movie premiere which recently debuts in Oyo and Lagos States, as part of its corporate social responsibility (CSR) initiative.

Nigerian Idol, a platform for budding and talented singers to express themselves is also been sponsored by this emerging, friendly conglomerate, which also organised a prototype of the show for content drivers in Lagos recently, christened Bigi Media Idol.

In its environmental preservation programme, the organization recently embarked on a clean-up of the Alpha beach in Lagos, and immensely supported the less privileged in one of the communities in the state with consumable household items, as part of its CSR programme.

Future Of Advertising: Scannable QR Code Appears In The Sky Above Shanghai

Brand Spur
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Future Of Advertising: Scannable QR Code Appears In The Sky Above Shanghai

Future Of Advertising: Scannable QR Code appears in the sky above Shanghai

An enormously popular Chinese video sharing and streaming site, Bilibili, used 1,500 computer-controlled drones to create the illuminated image, which was part of a two-minute light show designed to celebrate the first anniversary of the China release of Princess Connect! Re: Dive, a role-playing video game first unveiled in Japan in 2018.

Future Of Advertising Brand Spur Nigeria Scannable QR Code Appears In Sky Above Shanghai china

Bilibili also made a video that showed off some additional drone formations, including depictions of characters in the game, and a message saying “happy birthday.” The demonstration concluded with the QR code, which, when scanned, leads to a download page for the game (the code in the photo above still works).

Future Of Advertising Brand Spur Nigeria Scannable QR Code Appears In Sky Above Shanghai china

As images of the display started to spread on social media, some people complained, calling the promotional stunt dystopian light pollution. Others, mostly people who work in advertising and marketing, though it was awe-inspiring. And a lot of people were in the middle, saying they didn’t know what to think of it because it looked both cool and creepy at the same time.

2020: PRESCO Bounces Back Strong As Burgeoning Local Demand Drives Topline Growth

Meristem
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2020: PRESCO Bounces Back Strong As Burgeoning Local Demand Drives Topline Growth

…Burgeoning Local Demand Drives Topline Growth

PRESCO, in its 2020FY financial scorecard, posted strong double-digit growth in revenue (+21.13% YoY) to NGN23.89bn (vs. 2019FY: NGN19.72bn) – recovering from a 7.59% YoY decline in the prior year.

Despite supply chain disruption and other logistic challenges thrown up by the pandemic, revenue climbed to its highest level in six years as the firm benefited from an improvement in sales; a consequence of the restriction placed by the CBN on access to foreign exchange for Crude Palm Oil (CPO) imports.

Another policy directive with unintended benefits for the palm oil producer was the Federal Government’s decision to close the land borders, which effectively shut out smuggled alternatives and encouraged patronage of locally made products. This provided local players with the latitude to increase product prices. Both directives, coupled with the company’s prior capital investments (including the construction of a 350 tons per day palm kernel crushing plant and 30 tons palm kernel shell boiler in 2019) supported the improvement in sales over 2020FY.

For 2021FY, we envisage robust local demand for CPO and its derivatives against the backdrop of a gradual pick-up in economic activities. We also see support coming from the CBN’s decision to discourage CPO imports by withholding FX, as well as expectations of a much higher crude oil price environment in the year. On risks to our outlook, we do not consider the reopening of the land borders a significant downside risk, given that the FG’s protection on local palm oil producers remains firmly in place.

Thus, we project a 11.91% growth in 2021FY revenue to NGN26.74bn (vs. 2020FY: NGN23.89bn).

Profitability Metrics Remain Promising

The company’s profitability metrics (ROE: 17.86%, net margin: 22.02%) remain quite attractive despite moderate increases in both direct (2020FY: NGN7.80bn vs. 2019FY: NGN7.00bn) and net operating expenses (2020FY: NGN7.38bn vs. 2019FY: NGN6.43bn) during the year.

Total interest-bearing liabilities declined to NGN20.76bn from NGN25.37bn in the prior year as the firm paid down a portion of its debt. As a result, finance expenses fell by c. 10% to NGN1.92bn while interest coverage ratio expanded to 5.50x (from 3.81x as at 2019FY). Also noteworthy is the CBN’s decision to reduce interest rates on its loans to 5% per annum effective March 2021. This is expected to last for a year. We believe this would serve to moderate the company’s finance costs as these loans represent c. 37.11% of PRESCO’s total borrowings in 2020FY.

Finally, the company recognized an NGN1.85bn gain on biological asset revaluation, further strengthening its bottom line. Both PBT and PAT eventually settled higher – up by 43.41% and 37.07% YoY to NGN8.69bn and NGN5.26bn respectively.

Return on Equity Lags its Major Peer Company

While an improvement from last year, PRESCO’s annualized ROE (17.86%) lags that of its peer (OKOMUOIL: 23.17%) – mainly as a result of a weaker net margin (22.02% vs. OKOMUOIL: 33.23%) and asset turnover (0.33x vs. OKOMUOIL: 0.47x). PRESCO’s liquidity metrics also pose a serious concern, with a current ratio of 0.79x, which is way below the industry average of 2.94x.

Outlook and Recommendation

For 2021FY, based on positive industry outlook as well as modest improvement in macroeconomic conditions, we project an EPS of NGN6.21 applied a P/E ratio of 11.30x

Total Nigeria Plc – A Tough Year Although With Few Positives

Meristem
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0
Total Nigeria Plc – A Tough Year Although With Few Positives

…Another Unimpressive Full Year Performance

TOTAL’s 2020FY scorecard showed another year of revenue decline (-29.93%YoY), but this time to a 5-year low of NGN204.72bn.

The decline was steeper due to the COVID-19 crisis, which affected industry supply chains and disrupted sales. Revenue from petroleum products was most affected, plunging by 35.07%YoY to NGN156.49bn, while lubricant sales fell by 6.85%YoY to NGN 47.67bn. By segment, product sales to Aviation, Network, and General Trade declined by 53.42% YoY, 30.12%YoY, and 20.14% YoY respectively.

Similarly, PMS (Premium Motor Spirit) prices were adjusted in line with the crash in crude prices in Q2:2020 (from NGN144.87 to NGN125 per litre), with the result causing a 50.33% YoY drop in revenue at the end of that quarter. Although PMS prices gradually picked up as oil prices improved, sales remained subdued due to bottlenecks with FX sourcing.

As it stands, FX sourcing remains an industry-wide problem suppressing import volume. Barring significant improvement in FX liquidity, sales volume is expected to remain pressured. However, we anticipate the rising global crude oil prices to support an upward revision of petroleum products prices. On this basis, we project a topline growth of 42.19%YoY from NGN204.72bn in 2020FY to NGN291.10bn in 2021FY.

Finance Cost Dips Significantly

Cost to sales ratio for the year (84.98%) was slightly better than the 88.00% recorded in 2019. This was realized from savings on material costs (lubes, greases, and refined products), which was considerably lesser by 32.42%YoY.

Our assessment is that the installation of another high-speed filling machine at its Lagos blending plant contributed to the company’s production efficiency. Operating expenses also declined marginally by 1.13% YoY mainly due to lower volume sold during the year.

However, despite reduced OPEX, cost efficiency weakened as OPEX margin peaked, reaching 13.69% from 9.70% achieved in 2019FY. Consequently, EBIT margin dipped by 163bps to 1.73% with EBIT settling at NGN3.54bn (-63.98%YoY) for 2020FY. On the other hand, TOTAL’s finance cost declined significantly by 63.39%YoY to NGN2.89bn, owing to a reduction in bank overdraft rates to 8.46%, from 14.75%.

The company took advantage of the low-interest environment by issuing commercial papers to raise c.NGN15bn, with the rates on the instruments ranging for as low as 1.75% to 2.0%. We are however concerned about its FX denominated revolving credit facility from its related party given the volatile FX environment. About USD25.55mn has already been drawn down from this sum. Overall, Profit after tax settled at NGN2.06bn (vs NGN2.28bn in 2019FY).

Free Cash Flow Improves on Account of Better Operating Cycle

Going by the trend in the last 5 years, TOTAL’s free cash flow peaked at NGN37.36bn in 2020FY. This was boosted by improved cash generation, evidenced by the shorter operating cycle achieved in the financial year. We attribute this to favorable credit terms with its supplier which are mainly related parties as payable days increased from 84 days to 137 days.

However, we observed an interest-bearing component (short-term foreign revolving credit) of NGN9.54bn in the company’s payables, with the figure repeated as loan and borrowings. Adjusting for this apparent double-counting would reduce the number of days it takes the company to pay its creditors to 127days – a better reflection of the existing supplier credit terms.

Overall, return to equity shareholders remained low at 7.31%, compared to 7.72% in 2019FY and a 5- year historical average of 32.99%. This has been a result of weak earnings and a sluggish asset turnover (1.48x) compared to its peers (3.53x).

Recommendation and Outlook

The future growth of the downstream sector hinges on a fully deregulated market to boost margins. For 2021FY we project EPS of NGN7.48 and a P/E ratio of 19.65x. This brings our target price to NGN146.98 – an implied upside potential of 8.15% when compared to its closing price as of April 21, 2021. We, therefore, recommend the ticker as HOLD.

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