At the event, the Avon HMO team not only gave free health checks to all participants but also had a masterclass on ‘The Impact of Organisational Culture on Employee Wellness’ which was anchored by Dr. Babajide Oyeduntan, their Head of Retail Sales and Partnerships.
Watch video below;
Operating loss improved by 48% YoY from N11.76bn in FY 2019 to N6.07bn in FY 2020. A decline in operating expense by 8% YoY from N16.40bn in FY 2019 to N15.16bn in FY 2020 supported the reduction in the operating loss. However, an impairment loss on trade receivables which stood at N3.77bn in FY 2020 (FY 2019: N200mn) partially offset the cost savings recorded.
Loss before tax improved 53% YoY from N9.75bn in FY 2019 to N4.59bn in FY 2020 while loss after tax improved 47% to N3.97bn in FY 2020 from N7.42bn in FY 2019.
The revenue breakdown of operating segments revealed that the Food products segment improved by 7% from N31.78bn in FY 2019 to N34.11bn in FY 2020 while the Household and Personal Care (HPC) Products segment declined by 3% from N28.71bn in FY 2019 to N27.85bn in FY 2020.
On the Food Products segment, we attribute the revenue growth to coronavirus-induced demand, as households made panic-buys to stock up ahead of the lockdown policies implemented by the national authorities. On the other hand, we believe that the decline in the HPC products segment was due to increased competition during the period.
Cost margin improved to 79% YoY in FY 2020 from 94% in FY 2019 on the back of a 12% decline in cost of sales to N49.16bn in FY 2020 (FY 2019: N55.73bn).
The major cost decline driver resulted from a 19% YoY decline in raw materials and other related costs from N46.25bn in FY 2019 to N37.35bn in FY 2020. As a result, gross profit grew by 169% YoY from N4.75bn in FY 2019 to N12.80bn in FY 2020. Operating expense declined by 8% YoY to N15.17bn in FY 2020. Specifically, selling and distribution expenses declined 11%, while marketing and administrative expenses declined 7% YoY.
However, impairment loss on trade and intercompany receivables weighed down the cost savings gains achieved. Impairment loss on trade and intercompany receivables surged 1785% YoY to N3.77bn in FY 2020 from N200mn in FY 2019.
During the period under review, the Group wrote off N396.31mn worth of bad debt and N2.69bn worth of intercompany receivables.
The Group incurred a N6.07bn operating loss in FY’2020, an improved level relative to an N11.76bn loss in FY 2019. Although gross profit significantly increased in FY 2020, it was still unable to cover operating expenses, despite the Group’s efforts to lower costs. In our view, we posit that the Group made efforts to protect margins by optimizing costs due to weak income generation, amid persistent macroeconomic challenges.
Loss before tax lowered by 53% YoY, while loss after tax lowered by 47% YoY from a N7.42bn loss in FY 2019 to a N3.97bn loss in FY 2020.
We maintain a weak macroeconomic outlook for the Group in the near to medium term. Specifically, the combination of rising unemployment, low household income, and by extension – weak consumption, and eroding consumer purchasing power is expected to be the major factors limiting the revenue growth prospects for the Group.
The struggle among market players for a share of the consumers’ weakening wallet is also expected to result in competitive pressures for the Group.
We estimate a 5% YoY revenue growth to N65.35bn, and we expect the Group to rebound to profitability in FY 2021. We project a N383mn profit after tax in FY 2021, as we expect the Group to double down efforts to optimize costs.
Also, we project a N0.04 dividend for FY 2021, after two consecutive years of no dividend to shareholders.
We believe that the Group is in a sufficient liquid position, and we expect to see a stronger cash position in subsequent periods due to the Group’s renewed focus on cash-backed sales. Using a blend of Discounted Cash Flow, Discounted Dividend, Residual Income, and EV/EBITDA valuation methodologies, we arrived at a N9.48 fair value.
At the stock’s current market price of N13.30, the total return estimate stands at -28%. Hence, we believe that the stock is currently overvalued. Therefore, we recommend SELL.
Brand Spur Nigeria understands that Osinbajo disclosed this in a statement on Friday evening, citing that the scheme will enable Nigeria to achieve sustainability and increased trade.
However, the scheme is in collaboration with the African Development Bank (AfDB) and other stakeholders such as the International Fund for Agricultural Development (IFAD) and the Bank of Industry.
The agro-processing centres will be provided with basic infrastructure such as water, electricity and roads as well as facilities for skills training. Small-holder farmers in the catchment areas will be linked to markets across the value chain.
To set off the plan in the opening phase, 7 States representing most of the geo-political zones in the country have been selected in addition to the Federal Capital Territory. The States are Ogun, Oyo, Imo, Cross River, Kano, Kaduna, Kwara. All the other States in the country would be added later as the scheme progresses.
As a regional first, the partnership with Mastercard will enable Uber to drive digitization across their business operations, leveraging Mastercard’s single infrastructure to meet all types of payments needs across Uber Rides, Uber Eats, Uber Pass, and Uber for Business.
It is intended that the partnership will boost cashless payments, drive digital payment acceptance, reward loyalty, while supporting Uber’s continued social impact collaboration.
The Economy 2021 report released by Mastercard notes that the economic impact of COVID-19 has introduced permanent changes in digital consumer spending habits, growth of online banking, fintech disruption and opportunities to boost financial inclusion.
Through the partnership, both companies can bridge the financial inclusion gap through a broad range of efforts.
Amnah Ajmal, Executive Vice President Market Development, Mastercard, MEA explains: “Mastercard continues to partner with digital players across the value chain to build a more connected world. Enabling secure, immediate movement of money for gig economy workers and customers is especially vital as we support economic recovery efforts.
Through our growing partnership, we are enabling the company’s long-term business growth as a result of improved operational efficiencies, driving greater financial inclusion and innovation across the region, and ultimately boosting the growth of digital economy in MEA.”
Last year, Uber in South Africa launched a product called Uber Pass, which will now be available across most cities in MEA, with Mastercard becoming a key distribution partner to help drive adoption. To celebrate the launch, for a limited time only, customers can save 30% off their next 10 rides and 30% off their next 10 Eats orders, when they sign up to Uber Pass using Mastercard as their payment method!
Tino Waked, Regional General Manager, Middle East & Africa, “This is the largest partnership for us across MEA, and we are proud to be working together to bring key financial solutions to driver-partners and delivery people across MEA. Driver’s and delivery people’s well-being is a top priority and putting opportunities they want within reach is important to us.”
This new partnership builds on existing work between the two organizations. In a joint initiative last year, Mastercard committed 120,000 free trips and meals to those supporting communities across the Middle East and Africa, which was facilitated through Uber. This strategic partnership between Mastercard and Uber spans across the region and through key partnerships, supported cities, hospitals, front line workers and marginalized communities with free rides and meals.
While vaccines are a reality, communities are still in need of various support. Mastercard and Uber remain committed to helping people around the world navigate these challenging times and stand ready to support cities whether it be logistics or free rides.
The work undertaken with Uber plays a key role in advancing Mastercard’s worldwide commitment to financial inclusion and the company’s pledge to bring a total of 1 billion people, 50 million micro and small businesses, and 25 million women entrepreneurs into the digital economy by 2025. DM
This development follows the official launch ceremony which was held in August 2020 where The Coca-Cola Foundation, the philanthropic arm of The Coca-Cola Company, partnered with W.A.S.T.E AFRICA to launch its novel “Cash 4 trash” initiative in 5 communities across Abuja, FCT. This bold initiative is targeted at promoting a waste-free world through waste recovery, recycling, and economic development.
In her opening remarks, Director of Public Affairs, Communications & Sustainability, Coca‑Cola Nigeria, Nwamaka Onyemelukwe said, “A greener environment remains a priority area for Coca-Cola as evidenced by the numerous initiatives launched and supported by The Coca-Cola Foundation. The Cash 4 Trash initiative presents an opportunity for us to ensure a reduced carbon footprint across Nigeria and an improved attitude towards waste management”.
“Cash 4 Trash is an initiative that not only ensures our streets are clean, but also provides monetary rewards to individuals. The incentivized nature of the project will ensure buy-in from all stakeholders and reconcile the best interests of all parties involved”, she added.
Also, speaking at the event, the Founder of MEDIC, Doyinsola Ogunye remarked, “It is a pleasure working with The Coca-Cola Foundation and W.A.S.T.E Africa to directly impact the lives of women and youths. We believe that with this initiative, even young children will imbibe the culture of waste management within the community. With the Cash 4 Trash Initiative, the whole community has a role to play in ensuring the economic and environmental wellbeing of the society”.
Present at the launch event were the Secretary Eti-Osa East LCDA, Hon. Sanni Saheed; Supervisory Counselor Chieftaincy and Community Affairs Eti-Osa East LCDA, Hon. Agbalaya Abiodun; Founder EMR Consult, Wunmi Ogunde; Founder MEDIC, Doyinsola Ogunye; and Director of Public Affairs, Communications & Sustainability, Coca‑Cola Nigeria, Nwamaka Onyemelukwe amongst others.
Cash 4 Trash is a recycling scheme designed to empower communities while ensuring cleaner environments. This initiative will also be executed by leveraging cutting-edge technology using the Pakam app, through which recyclers will request pick-up of plastic waste collected. With the continuous funding of recycling initiatives in Nigeria and smart waste collection, Coca-Cola continues to work towards its goal of building a World Without Waste.
Since its launch in 1984, The Coca-Cola Foundation’s donations to sustain local communities around the world has reached $1 billion. The Foundation offers community support programs that have led to the improvement of the quality of life of people and communities across the world.
Seleem Adegunwa, Managing Director and Chief Executive Officer, Rite Foods Limited, made the statement at the maiden edition of Bigi Media Idol, held in Lagos. “The purpose of having you is to first express our commitment to talent discovery in music through the Nigerian Idol which we now sponsor and secondly, espouse our interest in creative art and ideapreneurship,” he stated.
Mr. Adegunwa further explained that music brings the best out of our culture and Nigeria is littered with abundance of talents-in music, movie, comedy, spoken words, and dance.
“We are putting our weight behind the Nigerian Idol because it will bring the best out of the many talents we have in the country,” he said. For the best to be discovered, groomed and given the necessary push, there must be a propelling platform which the boss said, the company believes the Nigerian Idol provides.”
“We are putting our weight behind the Nigerian Idol because it will bring the best out of the many talents we have in this country. Bigi has come to take over the mic,” he revealed.
It was a night of fun and laughter as different variants of Bigi drinks represented mics for top industry journalists and media practitioners who took over each variant mic to entertain guests and stakeholders with their sonorous voices in a keen music contest.
Rotimi Ige, a Nigerian Tribune reporter emerged winner of the grand prize of two hundred and fifty thousand naira. The sum of one hundred and fifty thousand naira was awarded to the first runner up, Osigwe Blessing, a reporter from High Society Magazine while Funsho Arogundade, a reporter from PM Express went home with one hundred thousand naira. All winners will also be given ten crates of Bigi drinks each.
Funsho Arogundade, one of the winners stated that Rite Foods is taking its footprint in the creative industry higher by setting the pace and raising the bar for other corporations to emulate. “Rite Foods has clearly demonstrated its unwavering support and commitment to rewarding talents in the country. The bar has been raised for other brands and corporations to emulate this great feat by Rite Foods,” he said.
All other contestants were awarded cash prizes of fifty thousand naira each as Nigerian Idol music judges, Obi Asika and DJ Sose were on ground to spice up the contest and select the best Bigi Media Idol of the year.
Established in 2007, Rite Foods Limited is a truly world-class and proudly Nigerian Food and Beverage Company, a subsidiary of Ess-Ay Holdings.
Its product line comprises 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, Bigi Ginger Ale, Bigi Premium Table Water, Fearless Redberry and Fearless Classic Energy Drinks, Rite Spicy, Bigi Beef Sausage roll and Rite Sausage roll.
The company’s 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.
Ibukun was formerly with Eat’n’Go Ltd, a quick-service restaurant (QSR) brand, before joining the new company. Worth mentioning is the fact that Burger King, an American multinational hamburger fast-food chain will commence operations in the Nigerian market by the fourth quarter of 2021.
Ibukun is also very involved in Sustainable Development Goals (SDGs) and is passionate about advocating for mental health, hunger and gender equality. She also hosts a podcast which can be heard via www.soundcloud.com/theibkshowpodcast or The IBK Show Podcast on Apple iTunes/ Anchor FM.
She holds a Bachelor of Science in Mass Communication/Media Studies from Babcock University Nigeria. She is also Digital Marketing and Data Analytics at Career Heights and Microsoft Certified Technology Specialist at New Horizons Computer Learning Centers.
The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.
A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.
“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.
This is proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.
In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.
Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers. The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.
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