IITA Partners With Nigerian Breweries For Olokemeji Reforestation

0

Every year, the world loses 10 million hectares of forest to indiscriminate poaching activities and the felling of trees. The depletion of our natural resources and increased emission of greenhouse gases contribute to climate change.

The IITA Forest Center, the Nigerian Breweries, and the Ogun State Ministry of Forestry are undertaking a 10-year project to reforest the Olokemeji Forest Reserve in Ogun State. The Forest Reserve is one of the largest in southwest Africa, covering 6,018 hectares of land. Community members have encroached on this Forest area by clearing different portions of the land for various farming activities.

The project aims to sensitize and encourage the community members and other stakeholders to reforest the area.

IITA Partners With Nigerian Breweries For Olokemeji Reforestation-Brand Spur Nigeria
IITA Partners With Nigerian Breweries For Olokemeji Reforestation-Brand Spur Nigeria

IITA partners with Nigerian Breweries for Olokemeji Reforestation
Some Olokemeji Community members and pupils awaiting the tree planting exercise.

A community entrance and familiarization event took place in March to launch the initial phase of the project. The project aims to provide community members with training on environmental conservation and multiple income generation sources through school conservation clubs, bee-keeping, and vegetable and herb gardening. These will help engender a sense of ownership over the project among the locals.

As part of International Forest Day celebrations, the project launched its first activities by planting trees in selected portions of the forest reserve. Men and women of the Olokemeji community, school children, and staff representatives from IITA participated in the activity.

IITA Partners With Nigerian Breweries For Olokemeji Reforestation-Brand Spur Nigeria
IITA Partners With Nigerian Breweries For Olokemeji Reforestation-Brand Spur Nigeria

Hilde Koper, IITA’s Deputy Director-General for Corporate Services, appreciated everyone present and emphasized the need for everyone’s cooperation to improve the forests for healthy living. Sylvia Oyinlola, Head Administration, IITA West Africa hub, captioned the goal of the day’s reforestation activity as ‘Reforest for a better forest for a better world.’

IITA Forest Center’s Ademola Ajayi, speaking on the effects of deforestation and the need to use our forests sustainably, said, “The unbearable heat we feel lately are effects of cutting down forest trees. Animals, insects, and birds that should help pollinate our plants migrate from our forests when their habitats are threatened. People suffer from diseases previously unknown to man because we upset nature’s balance by various deforestation activities.” He added that the way to use nature’s resources is to use them sustainably, “If you cut a tree, you should replant three,” he said.

IITA Partners With Nigerian Breweries For Olokemeji Reforestation-Brand Spur Nigeria
IITA Partners With Nigerian Breweries For Olokemeji Reforestation-Brand Spur Nigeria

In an earlier town hall meeting with community members and other stakeholders, Tayo Adelaja, Nigerian Breweries Public Affairs Manager West/MidWest, affirmed his company’s commitment and responsibility towards the project. He asked for everyone’s cooperation to bring about the project’s success, saying that the fruitful outcomes of the first phase would determine their continued collaboration for the project’s sustainability.

Apart from planting trees to restore the degraded land, the project will provide jobs for community members trained in various aspects of biodiversity conservation and forest protection. Members of the local communities themselves will be in charge of maintaining the project.

The sustainability course was especially entrusted to the children who would be members of School Conservation Clubs where they would interact with Club members from other schools and be more open to the world of conservation. They were enjoined to be ambassadors of the program and transfer the same knowledge of conservation gained to their peers and others.

MTN Foundation Sponsors “Tony Wants To Marry” Drive-In Theatre Performance

In line with its commitment to the renaissance of arts and culture in Nigeria, the MTN Foundation is sponsoring a drive-in theatre performance of Tony Wants to Marry, a play written by Jerry Alagbaoso and directed by Agozie Ugwu.

The play which explores the pressure Nigerian parents mount on their children to marry will feature several household names including Osas Ighodaro, Francis Duru and Cynthia Nwadiora (CeeC).

A press conference was held on 26th March, 2021 ahead of the Abuja show which is scheduled to hold on April 4, 2021, at the parking lot of Transcorp Hilton, Abuja at 6 p.m.

The Lagos show is scheduled to hold in May 2021. Explaining the decision of the production team to opt for a drive-in theatre performance instead of a traditional indoor theatre setting, Agozie Ugwu stated, “We are aware that the virus is still out there.

MTN Foundation Sponsors “Tony Wants To Marry” Drive-In Theatre Performance-Brand Spur Nigeria
MTN Foundation Sponsors “Tony Wants To Marry” Drive-In Theatre Performance-Brand Spur Nigeria

The idea of drive-in theatre is to ensure safety and forestall the spread of the virus. Drive-in theatre, since its inception in May 2020, has remained a veritable option for the reinvention of live performance amidst the pandemic.”

He described a drive-in theatre as “a theatre modelled after the theatre in the arena kind of performance where the audience drive in their cars, stay in their cars and watch a play from their cars.”

Expanding on the intersection between MTN’s commitment to the promotion of theatre and the safety of Nigerians, Nonny Ugboma, the Executive Secretary, MTN Foundation, stated that “The pandemic has created a problem for the arts and culture industry, which we at the MTN Foundation are passionate about. We also know that the experience of going to the theatre has been missed by theatre lovers.

We, however, commend the stakeholders in the industry for rising up to the challenge through physical distance solutions such as drive-ins and virtual shows. The drive-in takes us back to the history of theatre while ensuring safety. We are happy to be a part of Tony Wants to Marry and we are looking forward to it.”

Also speaking at the press conference, veteran actress and host, Osas Ighodaro stated, “I am very excited to be a part of this production. Thank you to MTN and all our sponsors for their support and for making this happen.”

Expressing his gratitude to the MTN Foundation for their support, Agozie Ugwu stated, “I want to use this opportunity to thank MTN Nigeria for the support in helping us actualize this performance. As our headline sponsors, they have shown their unreserved commitment towards the development and expansion of arts and cultural export in Nigeria and at the same time ensuring the safety of Nigerians from coronavirus. Thank you MTN for helping us reinvent theatre in the midst of the pandemic.”

Nonny Ugboma also spoke on MTN’s passion and work in the Nigerian arts and culture industry, “The MTN Foundation is passionate about arts and culture. Since 2015, we have been sponsoring the artistic endeavors of Nigerians in visual and creative arts.

We are particularly proud of our work in ensuring the renaissance of arts and culture and encouraging the creative expression of young people. Our support has also ensured the promotion of positive narration of Nigerian stories, cultural understanding, and Nigeria’s rich culture to local and international audiences.”

Agozie Ugwu iterated that the COVID-19 safety protocols would be strictly adhered to and urged everyone who intends to attend the event to come wearing their facemasks.

NFF President, Amaju Pinnick Pays Courtesy Visit To MTN

The president of the Nigeria Football Federation (NFF) Amaju Pinnick paid a courtesy visit to the corporate head office of MTN Nigeria in appreciation of the ICT giant’s immense contributions to the Super Eagles’ qualification for 2022 Africa Cup of Nations (AFCON) Qualifiers.

MTN Nigeria provided two boats and seven crew members in addition to insurance policy covers required for the team to embark on the national engagement.

The Gernot Rohr-led team took off and docked at the Falomo jetty in Ikoyi, Lagos, which was built by the telecommunications service provider for the Lagos State Waterways Authority (LASWA).

Speaking during the visit, Amaju Pinnick said, “On behalf of the NFF, I want to thank MTN Nigeria wholeheartedly for the support, especially the trip to Porto-Novo.

I put a call to Karl that we needed extra boat to take us to Porto-Novo and we got the support. It was an experiment that went very well. We want to thank MTN for helping us achieve this. We are proud to be associated with this brand. We are very proud of this relationship and the next big thing that will happen is for them to have a union with the NFF and I can assure them that the relationship will be beneficial to our teeming youth population.”

Appreciating the NFF team for their visit, Karl Toriola, CEO, MTN Nigeria said “We are looking for ways to support in a significant manner things that are important to Nigerians and football is central in this regard. We have complete faith that whatever initiative we agree on together will be properly executed by the NFF, led by Amaju Pinnick.

This is the starting point of that engagement. Our various teams are going to look at the manner in which MTN can be significant in terms of supporting football in Nigeria and when we have distilled that down to an executable plan we will progress.”

“We were given an opportunity by the leadership of football in Nigeria to support. We are grateful for that,” Toriola added.

Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria

Rite Foods Limited, a Nigerian leading foods, and beverages company has demonstrated its resolve to the promotion of talents in Nigeria through its Bigi brand, which sponsored the Prophetess Movie Premiere for select movie lovers in Nigeria; recently.

The movie with the theme, Celestial, Angelic, Heavenly, was shown at the Film House Cinema, Dugbe, in Ibadan, Oyo State, on March 26, this year and two days later, at Imaxx Cinema, in Lekki, Lagos.

It has the attributes of uniting the nation in its diversities, connecting families and communities, and packed with great football comedy as well as family entertainments.

Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria
Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria

The first show of the film was indeed very colourful, as it was an evening of excitement and humour, with lots of movie stars in attendance.

It was an evening of excitement and entertainment as many commended Rite Foods’ Bigi brand for supporting talents and the entertainment industry in the country.

It was also a pleasurable time of humour, with the celebrities and viewers who were over-the-moon acknowledging that the movie fit the bill of a modern creative storyline and quality production with the display of exceptional skills.

Directed by Niyi Akinmolayan, Produced by Victoria Akujobi, Mimi Bartels, Matilda Ogunleye, the movie is about the story of Ajoke (Toyin Abraham), a local Prophetess, who made a spurious prophecy about a football match which sets off a chain of events beyond her control. Knowing that her life was in danger, she decided to seek assistance from her sister, and as events unfold, the narrative continues with awe-inspiring scenes that kept spectators marveled.

Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria
Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria

Its casts include Toyin Abraham, Kehinde Bankole, DeyemiOkanlawon, Kunle Remi, Tina Mba, Ronke Oshodi Oke, Stan Nze, Seyi Awolowo, Lateef Adedimeji, Waliu Fagbemi, Remi Surutu, Chris Iheuwa, Blessing Obasi, Emeka Nwagbaraocha.

And it will be available in cinemas nationwide from April 2nd, this year, and would also be released on Netflix.

Eulogising Rite Foods, the Movie Producer, Victoria Akujobi, said the company has contributed immensely to the development of talent and the entertainment industry in general.

She commended the Bigi premium brand for its support which will help in taking the movie industry to an enviable height.

Commenting on the sponsorship, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa said the foods and beverage company is committed to the promotion of Nigerian talents in entertainment, special skills and ideapreneurship.

He added, “We are particularly interested in the Nigerianess of positive invention, idea generation and talents that promote our common values.”

Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria
Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria

As a leading soft drink in the beverage sector, the Bigi brand has also aided the entertainment sector through the sponsorship of the Nigerian Idol, a music reality show, which began few weeks ago.

Rite Foods has set the pace for other soft drinks in the industry, with its variants, comprising the Bigi Cola, Bigi Cherry Cola, Bigi Ginger Ale, Bigi Orange, Bigi Apple, Bigi Bitter Lemon, Bigi Soda Water, Bigi Lemon & Lime, Bigi Tropical, Bigi Chapman, Bigi Ginger Lemon and Bigi Tamarind.

Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria
Rite Foods Limited Retraits Commitment To Promotion Of Talents In Nigeria-Brand Spur Nigeria

Mouka Celebrates Easter With Consumer Promotion, Launches Luxury Mattress

0

Mouka, Nigeria’s leading manufacturer of branded mattresses, pillows and other bedding products, joins its consumers as they celebrate Easter.

To mark this year’s Easter celebration, the foremost company has rolled out exciting promotions in addition to a product introduction. The company’s CEO Raymond Murphy said Mouka prides itself in being the innovation trendsetter in its industry. According to him, Mouka is constantly renovating its current portfolio and innovating to ensure its offerings are exciting and attractive to its teeming consumers.

The latest addition to the company’s portfolio was introduced by Mouka’s Senior Brand and Innovation Manager, Akeem Audu. According to him, the Royal Pillow Top Mattress is a true definition of luxury at its finest and comes with a 10-year warranty. Its pillow-top layer delicately contours your body, providing relief to all pressure points.

Mouka Celebrates Easter With Consumer Promotion, Launches Luxury Mattress-Brand Spur Nigeria
Mouka Celebrates Easter With Consumer Promotion, Launches Luxury Mattress-Brand Spur Nigeria

The premium breathable fabric cover adjusts to your body temperature, keeping you cool and comfortable through the night. The mattress’s core is built with tempered and knotted Bonnell spring coils that ensure every part of your body gets the right support it needs.

According to Audu, Mouka is rewarding consumers who purchase the new Royal Pillow Top mattress with two luxury memory foam pillows worth N38,800 instantly. He also encouraged consumers to visit Mouka activation points at Next Cash & Carry Abuja, the Game stores in The Palms Victoria Island, Novare Mall Lekki and Abuja, and the Ikeja City Mall Lagos to have a feel of the new Royal Luxury Pillow Top Mattress.

In addition to the Royal mattress promotion, consumers who buy Mondeo Spring Plus go home with two Crown pillows free, while Dreamtime purchases come with kiddie goodie bags. For consumers living outside these areas, the promotions are also available on Konga.com and in Mouka Sleep Galleries across the country. This Easter promotion ends on April 5 2021.

P&G, WARIF Support Puberty Education In Schools

Aids Procurement of PPEs for WARIF frontline healthcare workers

In its commitment to address the issues affecting girls confidence and empowerment, leading consumer goods company, Procter & Gamble (P&G) Nigeria partnered with the Women at Risk International Foundation (WARIF) to facilitate the educational programs (WARIF Educational School Program – WESP) around Gender-Based Violence, helping girls build their confidence while supporting the organization with the acquisition of personal protective equipment (PPE) for WARIF’s frontline healthcare, which supports its “protect our heroes” interventions while promoting both its Education and Gender Equality Citizenship Pillars.

The partnership is driven by P&G Employees through P&G Employee Covid-19 Support Fund where employees made voluntary contributions to sponsor identified NGO (WARIF) as part of giving back to the community. P&G as an organisation matched 100% of total Employee contributions to reiterate its corporate commitment to Education and Gender Equality Citizenship Pillars.  The mandated lockdown in 2020 and stay-at-home directive due to the COVID – 19 pandemic resulted in increased number of cases of Violence Against Women and Girls (VAWG) as well as child abuse cases reported to WARIF as more women and children were in quarantine with their abusers.

The WESP Initiative, which started on March 10 at Oregun High School, was a four-week program themed “Identifying the Signs and Preventing School-Related Gender-Based Violence.” The program included P&G’s “Always Menstrual Hygiene Session.”

Commenting on the initiative, the P&G Senior Director for Africa, Global Government Relations & Public Policy, Mrs. Temitope Iluyemi, reiterated P&G’s dedication to gender-based issues. She said: “At P&G, we are always inspired by initiatives like this. Beyond this, we have a target to educate more than 50,000 adolescent girls on puberty and menstrual hygiene over the next three years in Nigeria through our Always Keeping Girls in School (AKGIS) program which will also provide a year supply of sanitary pads so that they can commit to their education and their future.”

“These trainings and sensitisation will play a pivotal role in creating the necessary education and awareness in girls on social issues that impact their confidence around puberty. That is why P&G is happy to partner with WARIF to evoke a change in the prevailing mindset of the community and a create a greater awareness about the issue of violence against women and resources available to affected girls”. Temitope revealed.

Commenting on the program, Founder of WARIF, Dr Kemi DaSilva Ibru stated that “With the increasing number of cases of rape and sexual violence in our communities during the COVID-19 pandemic, it  has become more critical now to engage the most vulnerable age group in our society – young girls between the ages of 12 and 18. Creating awareness by educating them and providing the necessary essential services to address the issue.

We are thankful to the P&G Team for their support and partnership with the WARIF Educational School Program; WESP an initiative specifically designed to empower and equip young adolescent schoolgirls with a tool kit in successfully tackling gender-based violence. We remain committed in ensuring that all girls can live in a society free from rape and sexual violence”

P&G also enabled the procurement of PPEs for the WARIF frontline Healthcare staff to facilitate their sustained engagement with the increasing number of affected persons.  The WARIF Rape Crisis Centre has so far treated 2204 beneficiaries who have benefited from medical treatment, forensic testing, psychosocial therapy, and social welfare programs. Survivors from various parts of Lagos State were given care protocols (internationally accepted protocols).

Over the years through proactive leadership and collaboration, P&G has tailored efforts to grow the reach and impact of positive action for communities, equality, and the environment in Nigeria.

Latest Brand Spur Nigeria News Headlines For Today, Friday, April 2nd, 2021

0

Happy Good Friday and Easter celebration, welcome to the latest Brand Spur Nigeria News headlines for today Friday, April 2nd, 2021.

  1. IT Coy, Partners French School To Advance AI, Business Learning

Coven Works, a Nigerian-American Information Technology company, is collaborating with French School to help Nigerians advance learning in Artificial Intelligence (AI), Business and Ethics.

The partnership was announced by Olusola Amusan, the Chief Executive Officer of Coven Works in Abuja.

Amusan said the institution, Aivancity School for Technology, Business and Society, Paris-Cachan, Paris, was built around three cores areas – AI, Business and Ethics of the 21st century.

2. INTBREW FY 2020 Results: Revenue Growth Sustained

International Breweries Plc. (INTBREW) managed to sustain its upward revenue trajectory, after a shaky start to the 2020 financial year. The brewer reported a 3.35% YoY growth in revenue to NGN136.79bn, overcoming a challenging first half (during which revenue was down 11.68% YoY due to social restrictions and absence of on-trade sales).

A gradual reopening of on-trade channels and festivity-driven demand fueled the rebound in third and fourth-quarter sales (up 22.79% and 16.90%YoY respectively), resulting in cumulative year-on-year growth. For 2021FY, our expectation for revenue growth is anchored on a more robust recovery of on-trade sales(which is responsible for almost 70% of total industry sales) as vaccination efforts in the country gather momentum.

3. UBN FY 2020: Focus On Nigerian Business Yields Early Benefits

UBN’s topline slightly decreased by 3.75% YoY to NGN166.55bn in 2020FY on the back of a downtrend in interest income and fees. Decline in Interest income by 3.34% YoY to NGN113.16bn (vs. NGN117.07bn in 2019FY) was driven by a drop in investment securities as a result of the low-interest rate environment and decline in asset yield during the year.

Also, despite the rapid growth in the bank’s digital footprint, e-business income and account maintenance fees dragged fees and commission income down by 4.61% YoY to NGN14.27bn. Nevertheless, non-interest income increased by 3.86% YoY to NGN44.48bn supported by FX revaluation gains which grew by 368.71% to NGN3.82bn. Gains (+104.57% YoY) on disposal of fixed income securities also contributed to the growth in non-interest income.

4. Access Bank Posts Gross Earnings Of N764.7bn For 2020, Extends African Footprint — MD

Access Bank Plc has declared gross earnings of N764.7 billion for the financial year ended Dec. 31. 2020, in spite of the challenging economic and regulatory landscape.

The bank said, in a statement on Friday, that the gross earnings represented an increase of 15 per cent, when compared with the N666.75 billion it reported in the 2019 financial year. Profits before tax stood at N125.9 billion in contrast with N115.38 billion achieved in the comparative period of 2019, the statement said.

5. NSE Opens April With N67 Billion Loss

The nation’s bourse opened the month of April with a loss of N67 billion, amid profit-taking.

Specifically, the market capitalization which opened for the month at N20.428 trillion dipped N67 billion or 0.33 per cent to close at N20.361 trillion. The downturn was supported by investors’ portfolio readjustment ahead of first-quarter earnings results.

6. Xiaomi Launches First Foldable Smartphone, Mi Mix Fold

Xiaomi officially launched its first foldable smartphone, Mi MIX FOLD, at the Spring 2021 New Product Launch that previously saw the announcement of Mi 11 Pro and Mi 11 Ultra.

Equipped with a large 8.01” WQHD+ resolution flexible internal display and a 6.52” external display, this innovative new device touts the largest foldable display on any smartphone to date. The device boasts even more firsts, debuting Xiaomi’s own Surge C1 Image Signal Processor optimized for professional photography, and sporting the first Liquid Lens seen in a smartphone.

7. 100 Happy New Month Messages, Wishes, Prayers For April 2021

Welcome to the month of April, the fourth month of the year 2021. A happy new month to you, your friends, and your family from Brand Spur Nigeria.

Being a new day of a new month, many expect good wishes from their friends, family members, and loved ones, hence, a need to compile one.

8. How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to you, there is no time to get desperate – the first thing you need to do is take care of your security. Here is how to block your SIM card and bank account in case of an emergency.

9. Road To Dakar: Audi Electrifies The Desert

Audi has made important steps on the way to its debut in the famous Dakar Rally in January 2022. The concept of the innovative prototype for the world’s toughest cross-country rally has almost been concluded.

The first tests are planned for the middle of the year. Project management for the company’s factory motorsport commitments has been taken over by Andreas Roos, who was most recently responsible for the successful DTM program at Audi Sport.

10. Brand Spur Nigeria Partners Gerety Awards, Hosts 2021 Jury Panel In Lagos

Gerety Awards has been billed to honour Nigerian creatives and in its usual practice, the organizer of the awards has selected a set of jurors who are big names in the Nigerian advertising and marketing communications landscape to judge the entries for 2021 and is also partnering with Brand Spur Nigeria as its main media partner in Nigeria.

The Gerety award is an event that rewards the highest and purest of creative excellence in advertising and communications; created to redefine Advertising and Communications by setting a new benchmark in global creative awards with its all-female power jury.

That’s the latest Brand Spur Nigeria News Headlines for today. Read more business, brand news on Brand Spur Nigeria. See you again next Friday.

UBN FY 2020: Focus On Nigerian Business Yields Early Benefits

…Topline Shrinks Despite Significant Revaluation Gains

UBN’s topline slightly decreased by 3.75% YoY to NGN166.55bn in 2020FY on the back of a downtrend in interest income and fees. Decline in Interest income by 3.34% YoY to NGN113.16bn (vs. NGN117.07bn in 2019FY) was driven by a drop in investment securities as a result of the low-interest rate environment and decline in asset yield during the year.

Also, despite the rapid growth in the bank’s digital footprint, e-business income and account maintenance fees dragged fees and commission income down by 4.61% YoY to NGN14.27bn. Nevertheless, non-interest income increased by 3.86% YoY to NGN44.48bn supported by FX revaluation gains which grew by 368.71% to NGN3.82bn. Gains (+104.57% YoY) on disposal of fixed income securities also contributed to the growth in non-interest income.

We expect the growth in trading gains to be relatively muted this year as yields tick up while FX revaluation gains are expected to moderate as we do not envisage as much devaluation of the Naira as occurred last year. Outlook for interest income is however positive given the current uptrend in interest rates and the bank’s anticipated growth in interest-earning assets.

Divestment to Significantly Boost Bottom Line in 2021FY

Net interest margin remained weak at 4.80% as against 5.80% in 2019FY despite the decline in cost of funds by 140bps to 4.20%. Increased traction on the bank’s digital channels supported retail deposit mobilization efforts leading to a 27.61% YoY growth in deposits to NGN1.13trn, composed mostly of low-cost funding. The bank’s operating expenses, however, increased by 10.17% owing to higher regulatory charges (AMCON Surcharge), software maintenance expenses (to support digital channels and support growth in transactions), and (one-off) Covid19 donations.

In spite of reversals of the impairment charge, the cost to income ratio (CIR) climbed 132bps to 75.42% from 74.10% in 2019FY. Loss from discontinued operations dragged profit after tax by 6.05% to NGN18.67bn (vs. NGN19.88bn in 2019FY). We note that the bank’s divestment from its UK subsidiary- in line with its strategy to focus on Nigeria- is still ongoing. We expect a moderation in OPEX growth as one-off items such as covid19 donations are not expected to recur. Furthermore, sustained growth on digital channels should continue to support a decline in cost of funds via low-cost deposits.

Our projections assume that the sale of the UK subsidiary will be concluded this year and that should significantly boost bottom line performance.

Asset Quality Maintains Solid Footing

UBN was able to grow its gross loans by 23.76% to NGN736.71bn in 2020FY despite the fragile macroeconomic environment. This combined with a decline in the non-performing loans by 15.29% YoY helped moderate NPL ratio to 4.00% (vs 5.84% in 2019FY) indicating an improvement in the asset quality. Furthermore, the proportion of Stage 2 Loans to Gross Loans also declined to 19.85% from 23.54%.

We are quite pleased with the bank’s credit risk management framework and we do not envisage any significant threats to asset quality over the near term. We however think that the bank needs to deploy more risk assets in order to meet up the minimum LDR requirement so that funds are not tied down in restricted deposits which are costly but yield no interests. Effective CRR currently stands at 31.65% (against prudential guideline of 27.50%) while LDR is at 61.51%.

Recommendation

We project an EPS of NGN0.88 and target P/E to 9.00x to reflect the bank’s positive outlook. This produces a Target Price of NGN7.92, with a upside potential of 49.41%. Thus, we recommend a Buy.

INTBREW FY 2020 Results: Revenue Growth Sustained

International Breweries Plc. (INTBREW) managed to sustain its upward revenue trajectory, after a shaky start to the 2020 financial year. The brewer reported a 3.35% YoY growth in revenue to NGN136.79bn, overcoming a challenging first half (during which revenue was down 11.68% YoY due to social restrictions and absence of on-trade sales).

A gradual reopening of on-trade channels and festivity-driven demand fueled the rebound in third and fourth-quarter sales (up 22.79% and 16.90%YoY respectively), resulting in cumulative year-on-year growth. For 2021FY, our expectation for revenue growth is anchored on a more robust recovery of on-trade sales(which is responsible for almost 70% of total industry sales) as vaccination efforts in the country gather momentum.

This should support alcohol volumes over 2021FY, which we forecast would come in higher, due mainly to a lower base from last year. On product pricing, although there has been no clear guidance from Management, we expect that the brewer would be less willing to increase prices (relative to its main competitors) in view of its price discount strategy.

We however do not rule out several marginal increases over the course of the year to cope with inflationary pressure and support margins. After considering all the above, we project a 7.44% YoY increase in revenue to NGN146.96bn (vs. 2020FY: NGN136.79bn).

Lower Finance Costs Relieve Bottomline Pressure

NGN4.70bn in cost savings on material consumed and allocated overhead (compared to last year) was the major driver of the 323bps contraction in cost to sales. Cost to sales fell to 77.72% (from 80.95% in 2019FY), which implies an increase in gross margin to 22.28% (from 19.05% in the prior year).

Operating expenses also provided support as marketing and distribution expenses declined by 20.47% YoY, pushing OPEX down to NGN40.57bn. Nevertheless, a combination of net FX losses (NGN14.21bn), write-off on PPE disposal (totaling NGN4.35bn), and impairment on financial assets (NGN1.45bn) tipped the brewer into an operating loss position.

Meanwhile, finance charges proved to be one of the bright spots as net finance costs crashed to NGN1.68bn, from NGN15.18bn in the previous year. This followed from the brewer’s successful rights issue (through which c. NGN162.78bn was raised and applied to paying off its long-term obligations). With NGN110.67bn in debt (as at 2020FY), we expect the brewer’s appetite for taking on new debt to be limited over 2021FY.

This might in turn curtail CAPEX spending, which dropped to NGN17.73bn in 2020FY, implying a Capex intensity of 12.97% (vs. 42.95% in 2019FY). We have modelled a slight increase in capital expenditure to NGN19.11bn for 2021FY (Capex intensity: 13.00%).

INTBREW ended the year in yet another loss position, howbeit better off than in the prior year. Loss before tax improved to NGN24.87bn (from NGN36.17bn in 2019FY), while loss after tax settled at NGN12.37bn (up 55.51% YoY) owing to a tax credit of NGN12.51bn.

Our 2021FY estimates imply the brewer would end the current year in a loss position, with expectations for a return to profitability (and the possible resumption of dividend payments) now further out in 2023E.

Recommendation

In arriving at our 2021FY target price, we projected an EBITDA of NGN23.37bn and a target EV/EBITDA of 8.90x. After adjusting for net debt of NGN59.86bn, we arrived at a target price of NGN5.51. This implies a downside potential of 3.27% from its current price as at 31st March 2021, thus we recommend a HOLD

Access Bank Posts Gross Earnings Of N764.7bn For 2020, Extends African Footprint — MD

Access Bank Plc has declared gross earnings of N764.7 billion for the financial year ended Dec. 31. 2020, in spite of the challenging economic and regulatory landscape.

The bank said, in a statement on Friday, that the gross earnings represented an increase of 15 per cent, when compared with the N666.75 billion it reported in the 2019 financial year.

Profits before tax stood at N125.9 billion in contrast with N115.38 billion achieved in the comparative period of 2019, the statement said.

The bank recorded consistent growth in its retail banking business, reporting a 5.8 million growth in customer sign-on during the year, through its financial inclusion efforts.

It said that this increase in customer base led to a retail revenue of N177.2 billion or a 64.4 per cent increase from the 2019 figures of N107.8 billion.

Customer deposits also grew by 31 per cent to N5.59 trillion in December 2020, with savings account deposits standing at N1.31 trillion, the bank also reported, just as net loans and advances also grew by 18 per cent to N3.61 trillion as against the 2019 figures of N3.06 trillion.

The statement quoted the bank’s Group Managing Director, Mr Herbert Wigwe, as saying that the performance was a testament to the effectiveness of its strategy and capacity to generate sustainable revenue.

“The strategic actions that the bank has taken, over the past 12 months, evidenced a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation.

“In 2020, Access Bank proudly opened its doors for business in Kenya and Mozambique, further extending our footprints across the African Continent.

“Access Bank Zambia also concluded the acquisition of Cavmont Bank Limited in January 2021, and the Group recently announced the approval, by relevant regulatory authorities, for the acquisition of Grobank Limited, creating an inroad into the South African market, in realisation of the Group’s strategic ambitions.

“In view of the opportunities that exist in the market, we will be transitioning to a holding company structure (Holdco),” Wigwe said, adding that an Approval-in-Principle had already been granted by the Central Bank of Nigeria for the restructuring.

According to him, the HoldCo would comprise four subsidiaries in order to tap into the market opportunities available in the consumer lending market, electronic payments industry and retail insurance market.

“Going into the fourth year of our five-year cyclical strategy, our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner,” Wigwe said.