Globacom Partners Eutelsat To Bring Satellite Broadband To Underserved Nigerian Communities

Q4 2020 Economic Outlook: Out of Reverse and into Second Gear

Business & Economy

FBNQuest

-

December 10, 2020

0

Economic Outlook – Out of reverse and into second gear

Off the floor but no dramatic GDP rebound

The economy, while still contracting, picked itself up off the floor in Q3’20 due to the end of the domestic and external lockdowns, which have given a boost to the crude price. The benefits from the discovery of vaccines for Covid-19 will be felt with a lag in Nigeria.

The GDP contraction this year and the recovery next year will be subdued, as we have consistently warned, because of Nigeria’s limited global integration and the slow pace of policy reform.

Oil as ever the determinant of a modest recovery

This latest recession, like the last and its predecessors, can be traced to oil price softness (as well as the pandemic). For a successful exit, we must look for an oil price recovery because project diversification of the economy remains just that (a project). The FGN needs the tax revenue from oil to make the changes.

OPEC+’s relative discipline, the hit taken by the shale industry in the US and the positive news on vaccines all point to such a recovery. This will give authorities headroom within the 2020 budget as global demand for crude, led by Asia, gathers momentum, and will compensate for faltering collection of non-oil taxes.

Just enough to get by on FX

Repetitive we regret but our view on FX policy and direction has not moved. The CBN’s plan is to make small FX rate adjustments once it has exhausted all administrative measures. This time around, foreign portfolio investors (FPIs) will not underpin the rate and shore up reserves. The rescue will come in the form of an oil price recovery and, the FGN trusts, the release of multilateral loans. The authorities should therefore be able to adhere to their plan.

Bond yields to settle after declining

The doubling of the DMO’s domestic funding target to NGN1.6trn this year has not created a spike in yields. Rather, the CBN’s management of liquidity and use of its regulatory powers, as well as the shortage of investment alternatives for domestic institutions, have caused yields to tank: almost nothing now for NTBs and the yield for the FGN bond maturing in ’50 at half the rate of inflation.

At these levels of return and allowing for global macro and FX considerations, the FPIs have dropped the Nigeria credit story. They have decamped to Egypt and elsewhere. We see FGN bond yields in the mid-curve in a range of 4.0% to 5.0% over the next quarter.

Central economic indicators		Year-end December
	2018a		2019a	2020f	2021f
Real growth (in per cent)	1.9		2.3	-2.5	1.8
CPI (in per cent; y/y Dec)	11.4		12.0	14.8	14.1
Monetary policy rate (%; year-end)	14.0		13.5	11.5	11.0
Current account/GDP (in per cent)	1.1		-4.3	-1.0	-1.1
Bonny Light (end-period spot; USD/b)	62		67	49	53
Bonny Light (average spot; USD/b)	73		65	42	51
Official FX reserves (in USD bn)	43		39	35	36
NGN/USD (NAFEX; end-period)	364		365	395	420
NGN/USD (NAFEX; average)	362		362	382	415

DOWNLOAD THE FBNQUEST ECONOMIC OUTLOOK Q4 2020 HERE

FBNQuest: Driving Women Economic Empowerment Initiatives

SME Corner

Esan Bolaji

-

December 10, 2020

0

FBNQuest: Driving Women Economic Empowerment Initiatives

Lagos, Nigeria, December 2020 – FBNQuest, the investment banking and asset management subsidiary of FBN Holdings Plc, has reinforced its commitment to promoting economic empowerment, through the delivery of an online financial planning session and the sponsorship of the Women in Successful Careers (WISCAR) Annual Leadership and Mentoring Conference.

WISCAR, a non-profit organization focused on empowering and developing professional women to contribute to development and growth in Nigeria and Africa. During the Annual WISCAR 2020 conference themed ‘the future we want’, participants were encouraged to visualize and reimagine the future they want for themselves and the next generation. The event was the culmination of a unique and structured one-year mentoring program for young female professionals and entrepreneurs.

The organisation also partnered with Leading Ladies Africa, a non-profit organization focused on equipping African women with the skills required to take on leadership roles across all sectors to deliver a webinar themed ‘Financial Planning 101: Starting your Journey to Wealth’.

The event was hosted using the firm’s interactive platform – ‘Leading Conversation with FBNQuest’ a series created to bring market, industry, consumer insights and analysis, crucial for individual and corporate success. The session provided insights on how professionals and business owners can commence their journey to financial wealth. Questions on investing and securing your future financially were answered by a panel of experts who spoke during the session.

Commenting on these partnerships, Lolade Sasore, Head People and Knowledge Engagement at FBNQuest Merchant Bank stated that

“At FBNQuest, we are committed to driving economic empowerment for women. Our partnerships with institutions such as WISCAR and Leading Ladies Africa have helped provide much-needed platforms to share insights and ideas that can be used to promote advancement in the financial system and overall economy.”

FBNQuest also empowers its female workforce through various activities delivered via its internal interactive network for female employees FBNQuest Women Interactive Network (FBNQuest WIN). The network for female employees was launched in 2017 to drive positive impact and build a highly motivated, diverse workforce. This network is key in driving discussions that affect women in the workplace such as gender diversity, inclusion, and work-life balance.

FBNQuest Merchant Bank Limited is the investment banking and asset management business of FBN Holdings Plc, one of the strongest and most dependable financial groups in Africa. We are innovative and client-focused, with strong industry and execution expertise to serve our diverse client base of high net-worth individuals, institutions, corporations and governments across a wide range of services.

From securing wealth to financing business opportunities, we are constantly searching for what comes next so we can take our clients there first. We are a trusted and inspirational partner founded on innovation, strong heritage and a pioneering spirit that drives us to help our clients look beyond today and redefine tomorrow.

Nigerian Creator of Unrefined storytelling Orry Shenjobi Debut Her Solo Exhibition

Entertainment & Lifestyle

Esan Bolaji

-

December 10, 2020

0

Nigerian Creator of Unrefined storytelling Orry Shenjobi Debut Her Solo Exhibition

Inspires many through her artistic rendition of real-life human stories

Lagos, Nigeria, 9th December 2020: one of Nigeria’s inspirational storytelling artist, Orry Shenjobi is set to debut her solo art exhibition ‘The Beauty Within the Struggle’. The event which promises to be experiential will take place from the 18th to 24th of December 2020 at Angels and Muse Art Gallery Lagos.

Orry Shenjobi, the Creative Director of Studio Orry is a unique storyteller. Her unrefined pieces of art are inspirational, crisp visuals and realistically created using mixed materials to encapsulate the depths of individualistic identity.

The creatively curated collection of art pieces by Orry tells the beautiful story of Nigerians and their amazing resilience in the face of unconventional situations. The solo exhibition is designed to showcase realistic designs created with a fresh and unrefined technique. Through her vast collection of strikingly demonstrative media pieces, which comprises of integration of painting and photography, Orry affords hope to her audience.

The Beauty Within the Struggle’ is a seven days exhibition starting from the 18th to the 24th of December 2020. Having allocated the first two days for the event opening with media and some VIPs, the 20th to 24th will be specially dedicated to all art enthusiasts.

“I hope to explore the depths of individualistic identity – the connections between society and self, whilst using prevalent social issues as a backdrop,” says Orry Shenjobi. “From the everyday lives of the unheard to the shared struggles of a collective, I capture these moments. By exploring the myriad of hopes, dreams, and fears of said individuals, I emphasize a sense of unity in uniqueness amongst these narratives. And this concept of unified individuality is made apparent in my work”.

Commenting further about her creative rendition, Orry explored the unique processes involved in creating art.

“Through the calculated use of materials and seamless weaving of media, I challenge my audience to question their preconceived notions. Thus, provoking many to embark on a personal discovery journey through unexplored territories. It is my way of inviting my audience to be co-creators with me and witnesses the multidimensionality of life.” Orry Shenjobi added.

Her immersive visual rendition focuses on captivating real-life pieces showcasing parts across Lagos, Nigeria, mostly on a well-known and isolated shantytown, Makoko. Orry’s art Highlights the beauty found despite difficult and unconventional situations.

For a virtual and experiential feel of her art, visit https://studioorry.com/

Orry Shenjobi of ‘Studioorry’ is an unrefined and inspirational storytelling artist. Taking a technical artistic approach, Orry combines art and photography to create strikingly demonstrative pieces. Her process involves the creation of unique and realistic mixed material designs using a fresh and unrefined technique.

With a degree in Product Design from the University of Leeds, Orry Shenjobi through her art recreates human stories for an immersive experience. As an advocate of female representation in and exposure to art, Shenjobi is a co-founder of ‘Women in Art’, a digital platform focused on featuring the works of women passionate about their art.

Equities Market Traded on a Quiet Note…ASI Down Marginally by 4bps

Business & Economy

PFI Capital

-

December 10, 2020

0

Equities Market Traded on a Quiet Note…ASI Down Marginally by 4bps

Activity in the local equities market was quiet with investors taking a wait and look stand on global and domestic and global macroeconomic development.

Notably, the All-Share Index dropped marginally by 4bps closing at 35,021.26 with market capitalization shedding N6.53bn to settle at N18.30tn. Consequently, Year to Date (YtD) performance moderated to 30.47%.

A look at the sectoral performance shows a significantly bearish mood as 4 sectors closed on a negative note. Specifically, Insurance and oil & gas index declined by 1.04% and 0.37% following bearish sentiment in MBENEFIT (-8.33%) and ARDOVA (-8.65%).

Similarly, Banking and Consumer goods went down by 0.07% and 0.03% due to selloffs in UBA (-0.61%) and CHAMPION (-8.16%). However, the industrial index advanced by 0.10%

Investors’ sentiment measures by market breadth also show a bearish sentiment as 13 stocks advanced while 21 stocks declined to indicate a 0.68x market breadth. This is followed by a decrease in the volume traded by 7.76%% while value advanced by 4.46%.

The bond market extended the quiet mood as yield advanced marginally on shorter maturities while those on longer maturities remained stable. The yield on the FGN-MAR-2023 declined by 0.02% to close at 1.79. However, Yield on FGN-JUL-2030 remain stable at 4.96%

Market Snapshot

Equities Market Traded on a Quiet Note…ASI Down Marginally by 4bps
The bond market traded on a muted note with yield stabilizing on longer-term maturities
US Stocks Waver Amid Stimulus Gridlock, Virus Surge
Oil Rises Near $49 on U.S. Stimulus, Attack on Small Iraqi Wells
Naira strengthened in the parallel market to close at N478/$

Insider Dealing: United Capital Plc Group CFO Acquires 180,000 Shares

Business & Economy

Esan Bolaji

-

December 9, 2020

0

Insider Dealing: United Capital Plc Group CFO Acquires 180,000 Shares

The management of United Capital Plc, a leading African financial and investment banking Group, has disclosed that Shedrack Andrew Onakpoma, Member of Staff, purchased ordinary shares of 180,000 at N4.50 per share on November 2, 2020.

shedrack-onakpoma Brandspurng Insider Dealing United Capital Plc Group CFO Acquires 180,000 Shares — SHEDRACK ONAKPOMA, Group Chief Finance Officer | www.brandspurng.com

In a statement signed by Leo Okafor, Company Secretary and released through the Nigerian Stock Exchange (NSE), United Capital said the transaction took place on December 9, 2020, at the Nigerian Stock Exchange in Lagos, Nigeria.

More transaction details below:

Insider Dealing Brandspurng Shedrack Andrew Onakpoma Acquires 180,000 Shares in United Capital — SOURCE: NSE

Shedrack Onakpoma Brief Profile

Shedrack Onakpoma was appointed Group Chief Finance Officer, in 2019 and oversees the Finance, Treasury and audit departments of United Capital Plc. He is an Economist and Professional Accountant with over 23 years working experience in Financial Management, Business Planning, Capital raising projects, M&A, Business Combination and Restructuring within Africa.

Prior to joining United Capital, he has held varying finance roles within and outside Nigeria in different industries ranging from Manufacturing to Financial Services. He was the Group Enterprise Manager at Heirs Holdings and the CFO at Tenoil Energy, CFO at Heirs Insurance Limited, CFO and Head of Strategic Management Office (SMO), at Union Assurance (Now Allianz Nigeria) and CFO at IGI Ghana Limited.

He obtained his BSc in Economics from Olabisi Onabanjo University in 2009. He qualified as a Chartered Accountant in 2002 and became a Fellow of the Institute of Chartered Accountants (ICAN) in 2013. He obtained his Balanced Scorecard Professional Certificate from the balanced Scorecard Institute, the USA in 2010.

He is also a Licenced International Financial Analyst. He is currently an executive student of the prestigious Lagos Business School (LBS) where he is running an Executive MBA program.

Shedrack is happily married with 4 beautiful children.

Here are the top 10 causes of death – WHO

Health

Esan Bolaji

-

December 9, 2020

0

Here are the top 10 causes of death – WHO

In 2019, the top 10 causes of death accounted for 55% of the 55.4 million deaths worldwide.

The top global causes of death, in order of a total number of lives lost, are associated with three broad topics: cardiovascular (ischaemic heart disease, stroke), respiratory (chronic obstructive pulmonary disease, lower respiratory infections) and neonatal conditions – which include birth asphyxia and birth trauma, neonatal sepsis and infections, and preterm birth complications.

Causes of death can be grouped into three categories: communicable (infectious and parasitic diseases and maternal, perinatal and nutritional conditions), non-communicable (chronic) and injuries.

Here are the top 10 causes of death - WHO Brandspurng3

Leading causes of death globally

At a global level, 7 of the 10 leading causes of deaths in 2019 were non-communicable diseases. These seven causes accounted for 44% of all deaths or 80% of the top 10. However, all noncommunicable diseases together accounted for 74% of deaths globally in 2019.

The world’s biggest killer is ischaemic heart disease, responsible for 16% of the world’s total deaths. Since 2000, the largest increase in deaths has been for this disease, rising by more than 2 million to 8.9 million deaths in 2019. Stroke and chronic obstructive pulmonary disease are the 2nd and 3rd leading causes of death, responsible for approximately 11% and 6% of total deaths respectively.

Lower respiratory infections remained the world’s most deadly communicable disease, ranked as the 4th leading cause of death. However, the number of deaths has gone down substantially: in 2019 it claimed 2.6 million lives, 460 000 fewer than in 2000.

Neonatal conditions are ranked 5th. However, deaths from neonatal conditions are one of the categories for which the global decrease in deaths in absolute numbers over the past two decades has been the greatest: these conditions killed 2 million newborns and young children in 2019, 1.2 million fewer than in 2000.

Deaths from non-communicable diseases are on the rise. Trachea, bronchus and lung cancers deaths have risen from 1.2 million to 1.8 million and are now ranked 6th among leading causes of death.

In 2019, Alzheimer’s disease and other forms of dementia ranked as the 7th leading cause of death. Women are disproportionately affected. Globally, 65% of deaths from Alzheimer’s and other forms of dementia are women.

One of the largest declines in the number of deaths is from diarrhoeal diseases, with global deaths falling from 2.6 million in 2000 to 1.5 million in 2019.

Diabetes has entered the top 10 causes of death, following a significant percentage increase of 70% since 2000. Diabetes is also responsible for the largest rise in male deaths among the top 10, with an 80% increase since 2000.

Other diseases which were among the top 10 causes of death in 2000 are no longer on the list. HIV/AIDS is one of them. Deaths from HIV/AIDS have fallen by 51% during the last 20 years, moving from the world’s 8th leading cause of death in 2000 to the 19th in 2019.

Kidney diseases have risen from the world’s 13th leading cause of death to the 10th. Mortality has increased from 813 000 in 2000 to 1.3 million in 2019.

Leading causes of death by income group

The World Bank classifies the world’s economies into four income groups – based on gross national income – low, lower-middle, upper-middle and high.

People living in a low-income country are far more likely to die of a communicable disease than a noncommunicable disease. Despite the global decline, six of the top 10 causes of death in low-income countries are communicable diseases.

Malaria, tuberculosis and HIV/AIDS all remain in the top 10. However, all three are falling significantly. The biggest decrease among the top 10 deaths in this group has been for HIV/AIDS, with 59% fewer deaths in 2019 than in 2000, or 161 000 and 395 000 respectively.

Diarrhoeal diseases are more significant as a cause of death in low-income countries: they rank in the top 5 causes of death for this income category. Nonetheless, diarrhoeal diseases are decreasing in low-income countries, representing the second biggest decrease in fatalities among the top 10 (231 000 fewer deaths).

Deaths due to chronic obstructive pulmonary disease are particularly infrequent in low-income countries compared to other income groups. It does not appear in the top 10 for low-income countries yet ranks in the top 5 for all other income groups.

Lower-middle-income countries have the most disparate top 10 causes of death: five non-communicable, four communicable, and one injury. Diabetes is a rising cause of death in this income group: it has moved from the 15th to 9th leading cause of death and the number of deaths from this disease has nearly doubled since 2000.

As a top 10 cause of death in this income group, diarrhoeal diseases remain a significant challenge. However, this category of diseases represents the biggest decrease in absolute deaths, falling from 1.9 million to 1.1 million between 2000 and 2019. The biggest increase in absolute deaths is from ischaemic heart disease, rising by more than 1 million to 3.1 million since 2000. HIV/AIDS has seen the biggest decrease in rank among the previous top 10 causes of death in 2000, moving from 8th to 15th.

In upper-middle-income countries, there has been a notable rise in deaths from lung cancer, which have increased by 411 000; more than double the increase in deaths of all three other income groups combined. In addition, stomach cancer features highly in upper-middle-income countries compared to the other income groups, remaining the only group with this disease in the top 10 causes of death.

One of the biggest decreases in terms of an absolute number of deaths is for chronic obstructive pulmonary disease, which has fallen by nearly 264 000 to 1.3 million deaths. However, deaths from ischaemic heart disease have increased by more than 1.2 million, the largest rise in any income group in terms of the absolute number of deaths from this cause.

There is only one communicable disease (lower respiratory infections) in the top 10 causes of death for upper-middle-income countries. Notably, there has been a 31% fall in deaths from suicide since 2000 in this income category, decreasing to 234 000 deaths in 2019.

In high-income countries, deaths are increasing for all top 10 diseases except two. Ischaemic heart disease and stroke are the only causes of death in the top 10 for which the total numbers have gone down between 2000 and 2019, by 16% (or 327 000 deaths) and by 21% (or 205 000 deaths) respectively. High-income is the only category of income group in which there have been decreasing numbers of deaths from these two diseases.

Nonetheless, ischaemic heart disease and stroke have remained in the top three causes of death for this income category, with a combined total of over 2.5 million fatalities in 2019. In addition, deaths from hypertensive heart disease are rising. Reflecting a global trend, this disease has risen from the 18th leading cause of death to the 9th.

Deaths due to Alzheimer’s disease and other dementias have increased, overtaking stroke to become the second leading cause in high-income countries, and being responsible for the deaths of 814 000 people in 2019. And, as with upper-middle-income countries, only one communicable disease, lower respiratory infections, appears in the top 10 causes of death.

Why do we need to know the reasons people die?

It is important to know why people die to improve how people live. Measuring how many people die each year helps to assess the effectiveness of our health systems and direct resources to where they are needed most. For example, mortality data can help focus activities and resource allocation among sectors such as transportation, food and agriculture, and the environment as well as health.

COVID-19 has highlighted the importance for countries to invest in civil registration and vital statistics systems to allow daily counting of deaths, and direct prevention and treatment efforts. It has also revealed inherent fragmentation in data collection systems in most low-income countries, where policy-makers still do not know with confidence how many people die and of what causes.

To address this critical gap, WHO has partnered with global actors to launch Revealing the Toll of COVID-19: Technical Package for Rapid Mortality Surveillance and Epidemic Response. By providing the tools and guidance for rapid mortality surveillance, countries can collect data on total number of deaths by day, week, sex, age and location, thus enabling health leaders to trigger more timely efforts for improvements to health.

Furthermore, the World Health Organization develops standards and best practices for data collection, processing and synthesis through the consolidated and improved International Classification of Diseases (ICD-11) – a digital platform that facilitates reporting of timely and accurate data for causes of death for countries to routinely generate and use health information that conforms to international standards.

The routine collection and analysis of high-quality data on deaths and causes of death, as well as data on disability, disaggregated by age, sex and geographic location, is essential for improving health and reducing deaths and disability across the world.

Brown-Forman stays strong in Q2 but volumes outpace value in H1

Beverages: Alcoholic & Non-Alcoholic

Esan Bolaji

-

December 9, 2020

0

Brown-Forman stays strong in Q2 but volumes outpace value in H1

Brown-Forman Corporation announced financial results for its second quarter and the first half of fiscal 2021. For the second quarter, the company’s reported net sales of $985 million were essentially flat (+4% on an underlying basis) compared to the same prior-year period.

In the quarter, reported operating income decreased 6% to $330 million (+6% on an underlying basis) and diluted earnings per share declined 15% to $0.50.

For the first six months of the fiscal year, the company’s reported net sales decreased 1% to $1,738 million (+4% on an underlying basis) compared to the same prior-year period. Year-to-date reported operating income increased 19% to $717 million (+11% on an underlying basis) and diluted earnings per share grew 20% to $1.17.

Brown-Forman’s President and Chief Executive Officer Lawson Whiting stated,

“We continue to be pleased with our underlying top-line growth in the first half. Notably, our business accelerated in the second quarter amidst an unprecedented environment.

These results are a testament to the resilience of our people, the strength of our brands, and the agility that so many before us today have demonstrated over the company’s last 150 years. As the pandemic continues, our focus remains on prioritizing the safety of our employees, meeting the needs of our consumers and business partners, and pursuing our long-term strategy.”

First Half of Fiscal 2021 Highlights

Underlying net sales grew 4% (-1% reported)

The United States grew underlying net sales 9% (+3% reported) while our developed international³ markets grew underlying net sales 10% (+10% reported). Underlying net sales in our emerging markets were flat (-13% reported).
Jack Daniel’s family of brands underlying net sales grew 2% (-3% reported). Underlying net sales growth from Jack Daniel’s RTDs³, Jack Daniel’s Tennessee Apple, Jack Daniel’s Tennessee Honey, and Gentleman Jack was partially offset by an unfavourable channel mix shift in Jack Daniel’s Tennessee Whiskey.
Premium bourbons grew underlying net sales 22% (+18% reported) driven by sustained double-digit growth across Woodford Reserve and Old Forester.
The tequila portfolio grew underlying net sales 13% (+5% reported) led by strong volume-driven increases from New Mix in Mexico and el Jimador in the United States, which additionally benefited from higher prices. Herradura’s underlying net sales declined 2% (-4% reported) as lower volumes, primarily in Mexico, more than offset double-digit growth in the United States.
Non-branded and bulk underlying net sales declined 33% (-34% reported) primarily reflecting lower demand and pricing for used barrels.

Underlying operating income increased by 11% (+19% reported) driven primarily by operating expense leverage.

First Half of Fiscal 2021 Brand Results

The Jack Daniel’s family of brands underlying net sales growth was driven by Jack Daniel’s RTDs, the ongoing launch of Jack Daniel’s Tennessee Apple, and broad-based volume growth from Jack Daniel’s Tennessee Honey and Gentleman Jack.

Underlying net sales decline for Jack Daniel’s Tennessee Whiskey was driven by lower volumes in certain emerging markets and our Travel Retail channel reflecting travel bans and other restrictions related to COVID-19, along with unfavourable channel mix effect in the United States and developed international markets related to significant restrictions in the on-premise channel.

Brown-Forman’s portfolio of premium bourbon brands sustained their double-digit underlying net sales growth. Woodford Reserve’s gains were fueled by strong consumer takeaway trends in the United States, slightly offset by volume declines in Travel Retail. Old Forester’s robust double-digit underlying net sales growth was powered by ongoing volumetric gains and favourable mix from the brand’s high-end expressions.

The company’s tequila brands contributed to underlying net sales growth through the first half led by higher volumes of New Mix in Mexico. el Jimador’s underlying net sales growth was driven by volumetric growth and higher pricing in the United States, while Herradura’s underlying net sales declines reflected lower volumes, primarily in Mexico, more than offsetting higher volumes, prices, and favourable product mix in the United States.

First Half of Fiscal 2021 Market Results

From a geographic perspective, underlying net sales growth in the United States and developed international markets was partially offset by declines in Travel Retail and used barrels.

In the United States, strong underlying net sales growth was led primarily by volumetric gains for our premium bourbons, Woodford Reserve and Old Forester, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack, Herradura, and el Jimador. These gains were partially offset by declines in Jack Daniel’s Tennessee Whiskey reflecting an unfavourable channel mix effect resulting from COVID-19 restrictions in the on-premise channel.

Double-digit underlying net sales growth in developed international markets was fueled by Jack Daniel’s RTDs, the launch of Jack Daniel’s Tennessee Apple in a number of countries, Jack Daniel’s Tennessee Honey, and Gentleman Jack.

The company’s emerging markets registered sequential improvement in the second quarter resulting in flat underlying net sales growth (-13% reported) for the first half of fiscal 2021 led by Brazil, Mexico, and Poland but offset by broad-based declines in Southeast Asia, Russia, India, and several Latin American markets as COVID-19 adversely affected these markets.

Underlying net sales in Travel Retail continued to be significantly impacted by the continuation of travel bans and restrictions.

First Half of Fiscal 2021 Other P&L Items

Volumes grew 15% led primarily by Jack Daniel’s RTDs and New Mix. Company-wide price/mix decreased 12% reflecting the portfolio mix shift with growth from lower-priced brands (Jack Daniel’s RTDs and New Mix) and unfavourable channel mix effect resulting from the COVID-19 related restrictions in the on-premise channel.

Underlying gross profit declined 1% (-6% reported) and reported gross margin contracted 350 basis points to 60.2% driven by higher input costs, lower fixed cost absorption and the negative effect of both the portfolio and channel mix shift discussed above.

The company’s investment in underlying advertising declined 23% (-23% reported) reflecting the phasing of spend, a reduction in on-premise activations, and the cancellation of consumer events and sponsorships are given the current environment. The company anticipates advertising investments to accelerate significantly over the balance of the fiscal year. Underlying SG&A declined by 6% (-6% reported) driven by the tight management of discretionary spend.

Underlying operating income increased by 11% (+19% reported) driven primarily by operating expense leverage, which we expect will reverse in the second half of the fiscal year.

Diluted earnings per share increased 20% to $1.17 including an estimated $0.19 per share gain from the sale of the Canadian Mist, Early Times, and Collingwood brands.

Financial Stewardship – 37th Year of Consecutive Increase in Regular Dividend

On November 19, 2020, the Brown-Forman Board of Directors announced a 3% increase in the regular quarterly cash dividend to $0.1795 per share on the Class A and Class B common stock. This marks the company’s 76th consecutive year of paying a dividend and 37th year of uninterrupted increases in their regular quarterly cash dividend. The quarterly cash dividend is payable on January 4, 2021, to stockholders of record on December 4, 2020.

Fiscal Year 2021 Outlook

The company continues to face substantial uncertainty in the rapidly evolving environment due to COVID-19 and its effect on the global economy. As a result of this ongoing uncertainty and expected volatility, the company is not providing quantitative guidance for the fiscal year 2021.

Jane Morreau, Executive Vice President and Chief Financial Officer, noted

“We believe our financial and business fundamentals remain strong, allowing us to navigate this highly dynamic environment while remaining focused on our long-term strategic priorities.” Morreau added, “In our 150-year history, we have experienced many unforeseen turbulent events and have emerged stronger. We believe this time will be no different.”

Heart disease remains the number 1 killer; diabetes and dementia enter the top 10 – WHO

Health

Esan Bolaji

-

December 9, 2020

0

Heart disease remains the number 1 killer; diabetes and dementia enter the top 10 – WHO

Non-communicable diseases now make up 7 of the world’s top 10 causes of death, according to WHO’s 2019 Global Health Estimates, published today. This is an increase from 4 of the 10 leading causes in 2000. The new data cover the period from 2000 to 2019 inclusive.

The estimates reveal trends over the last 2 decades in mortality and morbidity caused by diseases and injuries. They clearly highlight the need for an intensified global focus on preventing and treating cardiovascular diseases, cancer, diabetes and chronic respiratory diseases, as well as tackling injuries, in all regions of the world, as set out in the agenda for the UN Sustainable Development Goals.

“These new estimates are another reminder that we need to rapidly step up prevention, diagnosis and treatment of non-communicable diseases,” said Dr Tedros Adhanom Ghebreyesus, Director-General of WHO.

“They highlight the urgency of drastically improving primary health care equitably and holistically. Strong primary health care is clearly the foundation on which everything rests, from combatting non-communicable diseases to managing a global pandemic.”

Heart disease remains the number 1 killer; diabetes and dementia enter the top 10

Heart disease has remained the leading cause of death at the global level for the last 20 years. However, it is now killing more people than ever before. The number of deaths from heart disease increased by more than 2 million since 2000, to nearly 9 million in 2019. Heart disease now represents 16% of total deaths from all causes. More than half of the 2 million additional deaths were in the WHO Western Pacific region. Conversely, the European region has seen a relative decline in heart disease, with deaths falling by 15%.

Alzheimer’s disease and other forms of dementia are now among the top 10 causes of death worldwide, ranking 3rd in both the Americas and Europe in 2019. Women are disproportionally affected: globally, 65% of deaths from Alzheimer’s and other forms of dementia are women.

Deaths from diabetes increased by 70% globally between 2000 and 2019, with an 80% rise in deaths among males. In the Eastern Mediterranean, deaths from diabetes have more than doubled and represent the greatest percentage increase of all WHO regions.

Global decline in deaths from communicable diseases, but still a major challenge in low- and middle-income countries

In 2019, pneumonia and other lower respiratory infections were the deadliest group of communicable diseases and together ranked as the fourth leading cause of death. However, compared to 2000, lower respiratory infections were claiming fewer lives than in the past, with the global number of deaths decreasing by nearly half a million.

This reduction is in line with a general global decline in the percentage of deaths caused by communicable diseases. For example, HIV/AIDS dropped from the 8th leading cause of death in 2000 to the 19th in 2019, reflecting the success of efforts to prevent infection, test for the virus and treat the disease over the last two decades. While it remains the fourth leading cause of death in Africa, the number of deaths has dropped by more than half, falling from over 1 million in 2000 to 435 000 in 2019 in Africa.

Tuberculosis is also no longer in the global top 10, falling from 7th place in 2000 to thirteenth in 2019, with a 30% reduction in global deaths. Yet, it remains among the top 10 causes of deaths in the African and South-East Asian regions, where it is the 8th and 5th leading cause respectively. Africa saw an increase in tuberculosis mortality after 2000, though this has started to decline in the last few years.

The new estimates also emphasize the toll that communicable diseases still take in low-income countries: 6 of the top 10 causes of death in low-income countries are still communicable diseases, including malaria (6th), tuberculosis (8th) and HIV/AIDS (9th). Meanwhile, in recent years, WHO reports highlighting an overall concerning slow-down or plateauing of progress against infectious diseases like HIV, tuberculosis and malaria.

People are living longer – but with more disability

The estimates further confirm the growing trend for longevity: in 2019, people were living more than 6 years longer than in 2000, with a global average of more than 73 years in 2019 compared to nearly 67 in 2000. But on average, only 5 of those additional years were lived in good health.

Indeed, disability is on the rise. To a large extent, the diseases and health conditions that are causing the most deaths are those that are responsible for the greatest number of healthy life-years lost. Heart disease, diabetes, stroke, lung cancer and chronic obstructive pulmonary disease were collectively responsible for nearly 100 million additional healthy life-years lost in 2019 compared to 2000.

Injuries are another major cause of disability and death: there has been a significant rise in road traffic injuries in the African region since 2000, with an almost 50% increase in both death and healthy life-years lost. Similar but slightly smaller increases (at around 40%) were also observed for the Eastern Mediterranean region. Globally, deaths from road traffic injuries are 75% male.

In the Americas, drug use has emerged as a significant contributor to both disability and death. There was a nearly threefold increase in deaths from drug use disorders in the Americas between 2000 and 2019. This region is also the only one for which drug use disorder is a top 10 contributor to healthy life-years lost due to premature deaths and disability, while in all other regions, drug use does not make the top 25.

WHO’s Global Health Estimates present comprehensive, comparable and transparent time-series data for population health, including life expectancy, healthy life expectancy, mortality and morbidity, and burden of disease at global, regional and country levels disaggregated by age, sex and cause, from 2000 onwards.

“These estimates are produced using data from the best available sources from countries and the international community,” said Dr Bochen Cao, the technical lead for WHO’s Global Health Estimates. “They are based on robust scientific methods for the processing, synthesis and analysis of data. These updated estimates also benefited from the valuable contributions of WHO’s the Member States through active country consultation and dialogue.”

The availability of services to prevent, diagnose and treat disease is key to reducing death and disability, influencing where different conditions are ranked. These new estimates clearly indicate where additional investments in services are most urgently needed.

“Robust health data are critical to address inequalities, prioritize policies and allocate resources to prevent disability and save lives,” adds Dr Samira Asma, Assistant Director-General for the Division of Data, Analytics and Delivery for Impact at WHO. “The WHO Global Health Estimates are a powerful tool to maximize health and economic impact. We call upon governments and stakeholders to urgently invest in data and health information systems to support timely and effective decision-making.”

As of today, COVID-19 has tragically claimed more than 1.5 million lives. People living with pre-existing health conditions (such as heart disease, diabetes and respiratory conditions) are at higher risk of complications and death due to COVID-19.

Health authorities worldwide depend on timely, reliable and actionable data to make informed decisions – this is especially true during a global pandemic. The next update to these estimates will include an assessment of the direct and indirect impact of the COVID-19 pandemic on mortality and morbidity.

Brown-Forman Reports Solid First Half Results; Jack Daniel’s family of brands underlying net sales grew 2%

Beverages: Alcoholic & Non-Alcoholic

Esan Bolaji

-

December 9, 2020

0

Brown-Forman Reports Solid First Half Results; Jack Daniel’s family of brands underlying net sales grew 2%

Brown-Forman Corporation announced financial results for its second quarter and the first half of fiscal 2021. For the second quarter, the company’s reported net sales of $985 million were essentially flat (+4% on an underlying basis) compared to the same prior-year period.

In the quarter, reported operating income decreased 6% to $330 million (+6% on an underlying basis) and diluted earnings per share declined 15% to $0.50.

For the first six months of the fiscal year, the company’s reported net sales decreased 1% to $1,738 million (+4% on an underlying basis) compared to the same prior-year period. Year-to-date reported operating income increased 19% to $717 million (+11% on an underlying basis) and diluted earnings per share grew 20% to $1.17.

Brown-Forman’s President and Chief Executive Officer Lawson Whiting stated,

“We continue to be pleased with our underlying top-line growth in the first half. Notably, our business accelerated in the second quarter amidst an unprecedented environment.

These results are a testament to the resilience of our people, the strength of our brands, and the agility that so many before us today have demonstrated over the company’s last 150 years. As the pandemic continues, our focus remains on prioritizing the safety of our employees, meeting the needs of our consumers and business partners, and pursuing our long-term strategy.”