Covid-19: Taraba Government Reviews Its 2020 Budget

Esan Bolaji
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0
Covid-19: Taraba Government Reviews Its 2020 Budget

As a way of responding to the Coronavirus pandemic in Nigeria, the Taraba state government has trimmed down its 2020 budget from N215,923, 576,810.00 to N176, 616, 318, 475.000.

This was disclosed by the Commissioner for Budget and Planning, Hon. Solomon B. Elisha while briefing media practitioners on the current details of the 2020 budget, said 12.60% of the total revised expenditure has been dedicated to the fight against COVID-19, stating that “the COVID-19 response has taken 12.60% of the total export of the revised budget size and it cuts across the sectors bordering on crisis, recovery, mitigation, livelihood and palliative.”

Covid-19: Taraba Government Reviews Its 2020 Budget
Commissioner for Budget and Planning, Hon. Solomon B. Elisha addressing the press on why the state’s 2020 Budget was reviewed.

The Commissioner revealed that the downward review was necessitated by the prevailing situation heralded by the COVID-19 pandemic.

Citing the sharp decrease in the amounts accrued to the state in the first quarter of 2020, Hon. Elisha said, “the state has no reason to go beyond the projection of the Nigeria Governors’ Forum (NGF) and the Federal Government has the power to generate and share from this source.”

To however ensure that the revised budget sees the light of the day, the Taraba state government, as made known by him, has obtained permission through the legislature to access loans from commercial banks.

According to him, agreements have been signed with some of these creditors and an Irrevocable Standing Payment Order (ISPO) with Access Bank which is already in operation to fund some of the capital projects.”

Honourable Elisha said that the state government has made a commitment of funders to some World Bank Assisted Projects and other funds as matching grants, stating that other commitments have also been with external partners to supply farm inputs.

In the area of water supply, the African Development Bank (AfDB) as revealed by the commissioner has since been engaged in the provision of potable water in some urban centres of the state.

The Taraba state commissioner who also disclosed that the revised budget received the blessings of the entire members of the State House of Assembly and that due process was duly followed to the end said that Governor Ishaku has assented to the reviewed budget.

He said that the Internally Generated Revenue (IGR) of Taraba which was earlier pegged at over N6 billion for the fiscal year in question was not altered despite the adverse effect of the pandemic and the reason tied to the apron string of back-logs of revenue arrears to be collected especially the federal government’s IPPS with over N4 billion out of which more than half have already been recovered.

Equity market to sustains uptrend, post 0.16% gain

Esan Bolaji
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0
Equity market to sustains uptrend, post 0.16% gain

Transactions on the floor of the Nigerian stock exchange today (Wednesday) closed on a positive note, gaining 0.16%, extending the previous positive momentum to four consecutive trading days, following value appreciation on some bellwether stocks like ACCESS, GUARANTY, MOBIL, and 15 others.

Consequently, the market breadth closed on a positive note, recording 18 gainers as against 12 losers.

In summary, the All-Share Index (ASI) increased by 40.10 absolute points, representing a growth of 0.16% to close at 24,882.04 points. Similarly, the overall Market Capitalization size gained N20.92 billion, representing an increase of 0.16% to close at N12.98 trillion.

CAP emerged as the top gainers while ETERNA emerged as the top loser.

The upturn was impacted by gains recorded in large and medium capitalized stocks, amongst which are; JAPAULOIL (+4.76%), GUARANTY (+1.94%), FIDELITYBK (+1.76%), MOBIL (+0.92%), ACCESS (+0.79%), and UCAP (+0.67%).

MARKET STATISTICS

CAP N12,979,941,721,993.57 One Day (ASI CHG) +0.16%
Index 24,882.04 One Week (ASI CHG) +0.76%
Volume 383,289,488 One Month (ASI CHG) +3.56%
Value N3,892,572,515.51 Six Months (ASI CHG) -12.49%
Deals 3,860 52 Weeks (ASI CHG) -10.07%
Gainers 18 Losers 12
Unchanged 61 Total 91
YTD -7.30%

Source: NSE, GTI Research

FOREIGN EXCHANGE

The Naira at the official window on Wednesday closed at 381.00/$1, unchanged against the previous day’s position.

The Investors and Exporters (I&E) FX window opened at N387.79, traded high at N392.50, and eventually closed at N389.25, representing a 0.06% depreciation against the previous day’s closing position. A total of $24.66 million was transacted through the I&E window today.

MONEY MARKET

Overnight(O/N) rate closed at 9.33%, representing a 0.75% depreciation against the previous day’s closing position, while Open Buy-Back (OBB) rate closed at 8.50%, representing a 0.50% depreciation against the previous day’s position.

FIXED INCOME
Securities Close P. Close Change
Bond 340.16 293.09 +47.07 bps
T.Bills 158.58 151.12 +7.46 bps
Note: BPS=> Basis Points

Source: FMDQ, GTI Research

NASD OTC MARKET

The NASD OTC market today (Wednesday) closed on a negative note as the Unlisted Securities Index (USI) closed at 702.08, representing a 0.48% depreciation against the previous day’s closing position. Similarly, Market Capitalization shed N4.53 billion to close at N515.72 billion, representing a 0.48% depreciation against the previous day’s closing position. However, the aggregate volume and value increased by 1,082.27% and 71.36% respectively, as investors traded a total of 1.30 million shares, worth N7.09 million in 9 deal.

Sector Performance

Sector % Change
NSE30 0.15
BANKING 0.07
CONSUMER GOODS 0.01
INDUSTRIAL 0.01
INSURANCE -0.01
LOTUS ISLAMIC 0.02
OIL/GAS 0.11

Top 7 Gainers

Company Pclose Open Close Change % Change
CAP 15.40 15.40 16.90 1.50 9.74
UAC-PROP 0.84 0.84 0.92 0.08 9.52
GLAXOSMITH 4.85 4.85 5.15 0.30 6.19
NEIMETH 1.66 1.66 1.75 0.09 5.42
TRANSCORP 0.59 0.59 0.62 0.03 5.08
STANBIC 30.00 30.00 31.50 1.50 5.00
JAPAULOIL 0.21 0.21 0.22 0.01 4.76

Top 7 Losers

Company Pclose Open Close Change % Change
ETERNA 2.00 2.00 1.82 -0.18 -9.00
LIVESTOCK 0.65 0.65 0.62 -0.03 -4.62
MBENEFIT 0.22 0.22 0.21 -0.01 -4.55
LASACO 0.25 0.25 0.24 -0.01 -4.00
MAYBAKER 3.00 3.00 2.90 -0.10 -3.33
ZENITHBANK 16.95 16.95 16.50 -0.45 -2.65
FCMB 1.94 1.94 1.90 -0.04 -2.06

 

Top 7 Traders By Volume

Company Volume Value(₦) Current Price
FBNH                            66,441,272                      334,160,917 5.05
ACCESS                            59,194,515                      378,756,290 6.40
ZENITHBANK                            30,793,410                      521,189,659 16.50
PRESCO                            26,155,928                   1,255,775,362 48.00
STERLNBANK                            12,247,785                        14,297,365 1.14
UBA                            11,730,556                        73,949,790 6.30

 

Top 7 Traders By Value

Company Volume Value(₦) Current Price
PRESCO                            26,155,928              1,255,775,361.50 48.00
ZENITHBANK                            30,793,410                 521,189,659.05 16.50
ACCESS                            59,194,515                 378,756,290.10 6.40
FBNH                            66,441,272                 334,160,917.25 5.05
GUARANTY                              9,092,452                 214,176,224.30 23.60
MTNN                              1,406,067                 165,829,249.10 118.00
MOBIL                                 574,691                 100,532,350.00 175.00

GTI Group Research

Lagos State Reviews Land Use Charge to pre-2018 Rates

Esan Bolaji
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4
Lagos State Reviews Land Use Charge to pre-2018 Rates

…Waves Penalties for Y2017 – 2019, Sets Up Multiple Payment Channels

The Lagos Government has reviewed the Land Use Charge (LUC) Law by reversing the rates to pre-2018, thereby undertaking reforms to reduce financial pressure on citizens and accommodating the agitations of Lagosians in respect of the exorbitant rates.

The Commissioner for Finance, Dr. Rabiu Olowo, who revealed this on Wednesday during a press briefing held at the Bagauda Kaltho Press Centre, Alausa Ikeja, also disclosed that the penalties for 2017, 2018 and 2019 have been waived which translates to over N5 billion potential revenue relinquished by the State Government.

Lagos State Reviews Land Use Charge to pre-2018 Rates

While also revealing that multiple payment channels for the collection of the LUC have also been created by the Ministry to further ease the mode of payment including the use of online channels, Olowo maintained that the downward review and reforms of the Land Use Charge (LUC) shows that Governor Babajide Sanwo-Olu is concerned about ameliorating the financial pressure on Lagosians, especially during this pandemic.

According to him “In 2018, there was an increase in the Land Use Charge rate as well as the method of valuation of property; this twin shock had a sporadic increase in Land Use Charge payable by property owners. However, the present administration decided to review the Land Use Charge (LUC) law by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation”.

“Some of the new reforms introduced include exemption of property owned and occupied by a pensioner from paying LUC, reduction in the percentage increase in penalties for defaults in paying LUC in the following categories: 45-75 days from 25% to 10%, 75-105 days from 50% to 20% and 105-135 days from 100% to 50%”, he stated.

The Commissioner also announced a 48% reduction in the Annual Charge Rates, just as the annual rate for Agricultural land was reduced from 0.076% to 0.01% which represents an 87% reduction from the old rate.

He added that the right of enforcement has been reduced from notification of three default notices to two, but that profit-oriented libraries, cemeteries and burial grounds are no longer exempted from payment of Land Use Charge, among several other reforms.

Olowo further explained that an additional 10% COVID-19 incentive, as well as a 15% early payment discount, has been introduced to increase the total discount for early payment to 25% before the due date while he urged all property owners in the State to leverage on the discount and pay their LUC bills which will soon be distributed.

Speaking on payment methods, he said the LUC payments can be made online via https://Lagos.ebs-rcm.com and through USSD Code to any of the designated banks, noting that the Ministry of Finance has also expanded its complaints resolution process and as such Lagosians can make complaints about their bills to luc@lagosstate.gov.ng,citizensgate@lagosstate.gov.ng or through telephone numbers 0700LAGOSLUC,08058584486 and 09086786001.

Giving assurance that response time after payments will not exceed 24hrs, Olowo urged anyone who feels dissatisfied or whose complaint results in a dispute to please contact the Lagos State Appeal Tribunal at their Head Office at Plot 3, Otunba Jobi Fele Way, Alausa CBD.

The Commissioner expressed his appreciation to Lagosians who have been committed to the payment of their annual LUC in spite of the challenges posed by COVID-19 pandemic, stating that the payment of LUC is not intended to inflict any hardship on anyone because everyone is a stakeholder in the journey towards achieving a Greater Lagos.

New Normal for Tablet Market? Highest Growth Rate in Six Years Recorded in Q2 2020

Esan Bolaji
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0
New Normal for Tablet Market? Highest Growth Rate in Six Years Recorded in Q2 2020

Rush for mobile computing devices in the midst of pandemic results in 17% growth

Despite intense economic hardship related to COVID-19 quarantine orders, consumer and commercial customers went on a tablet buying spree to support work/learn-from-home initiatives.

New Normal for Tablet Market? Highest Growth Rate in Six Years Recorded in Q2 2020
Photo by Garrhet Sampson 

The supply chain almost fully recovered by April/May, which contributed to a 17% year-on-year increase in tablet shipments in Q2 2020, according to Strategy Analytics’ latest report.

Back-to-school demand could further boost the tablet market in the fall and looking long-term, tablet sales could see an extended resurgence due to lower price points if remote work and school options remain post-pandemic.

New Normal for Tablet Market? Highest Growth Rate in Six Years Recorded in Q2 2020
(Photo: Business Wire)

Eric Smith, Director – Connected Computing said, “As COVID-19 is still uncontained in some of the largest markets in the world and research shows certain workers and companies are getting used to remote work, it’s safe to say this won’t be a temporary change in demand”.

“Tablets have evolved from the simple entertainment slate of the boom years into devices more capable of handling work and school tasks, which has broadened the choices consumers and commercial clients face when upgrading or buying new devices for the new normal.”

Chirag Upadhyay, Senior Research Analyst added, “New products played an important part in this quarter’s tablet success as well. Apple’s newest iPad Pro models sold very well as consumers needed devices with keyboards to get work done at home.

“Microsoft’s fresh Surface Pro, Surface Book, and Surface Go devices gave it an advantage over competitors in the Windows Detachable segment, which has been more focused on updating their notebooks during the commercial refresh.

“Amazon released the next generation of Fire HD 8 tablets in the middle of the quarter to great success, taking advantage of a captive audience in online retail while brick-and-mortar retail traffic ground to a halt.”

Exhibit 1: Major Tablet Vendors Consolidated 73% of Global Market Share

Global Tablet Shipments by Vendor
(Preliminary Results, Millions of Units)

Vendor

Q2 ’20

Q2 ’19

Quarterly Growth Y/Y

Apple

14.3

10.7

34%

Samsung

6.9

4.9

40%

Huawei

4.9

3.4

45%

Lenovo

2.8

1.9

51%

Amazon

2.7

2.0

33%

Others

11.7

14.0

-16%

Totals

43.3

36.9

17%

Global Tablet Market Share by Vendor
(Preliminary Results, % of Total Shipments)

Vendor

Q2 ’20

Q2 ’19

Apple

33.0%

29.0%

Samsung

15.9%

13.4%

Huawei

11.3%

9.1%

Lenovo

6.5%

5.1%

Amazon

6.3%

5.5%

Others

27.0%

37.8%

Totals

100.0%

100.0%

Source: Strategy Analytics’ Connected Computing Devices service

Exhibit 2: Android Showed Resilience in Q2 2020, Growing Stronger Than Windows Segment

Global Tablet Shipments by Operating System
(Preliminary Results, Millions of Units)

Operating System

Q2 ’20

Q2 ’19

Quarterly Growth Y/Y

Android

23.6

21.2

11%

iOS

14.3

10.7

34%

Windows

5.2

4.8

8%

Chrome

0.2

0.1

11%

Totals

43.3

36.9

17%

Global Tablet Market Share by Operating System
(Preliminary Results, % of Total Shipments)

Operating System

Q2 ’20

Q2 ’19

Android

54.5%

57.5%

iOS

33.0%

29.0%

Windows

12.0%

13.1%

Chrome

0.4%

0.4%

Totals

100.0%

100.0%

Source: Strategy Analytics’ Connected Computing Devices service

Airtel Africa and Telkom Kenya terminate merger plan

Brand Spur
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0
Airtel Africa and Telkom Kenya terminate merger plan

London and Lagos, 5 August 2020: Airtel Networks Kenya Limited, an Airtel Africa PLC subsidiary, and Telkom Kenya Limited amongst other parties, had entered into an Agreement dated 8th February 2019 to combine their businesses in Kenya, so as to create an integrated telecommunications platform with mobile, enterprise, and wholesale divisions.

The completion of the Transaction was subject to the satisfaction of various conditions precedent, including regulatory approvals.

Despite Airtel Africa plc and Telkom respective endeavours to reach a successful closure, the Transaction has gone through a very lengthy process which has led the parties to reconsider their stance.

Accordingly, Airtel Africa plc and Telkom have decided to no longer pursue completion of the Transaction.

Raghunath Mandava, Airtel Africa CEO and MD said:

“Kenya is a large and growing market and we remain committed to building a growing profitable business. We currently serve more than 14 million Kenyan customers, a number that is growing month on month, and in the last quarter, our revenue numbers were up double-digit in constant currency in Kenya”.

“Our strategy to focus on winning more customers, invest in a best in class voice and data network and progressively expand our mobile money business, will continue to build on these results in order to deliver against the opportunities the Kenyan market has to offer”.

Airtel Africa is a leading provider of telecommunications and mobile money services, with a
presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.

Meyer Plc Relocates Corporate Head Office

Esan Bolaji
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0
Meyer Plc Relocates Corporate Head Office

Meyer Plc wishes to notify Its shareholders, The Nigerian Stock Exchange and the general public that the Company has relocated its Corporate Head office from, Plot 34, Mobolajl Johnson Avenue, Oregun Industrial Estate Ikeja to No. 32, Billings Way, Oregun Lagos.

The Company’s new Head Office address shall be published on the Company’s Corporate website.

Meyer Plc Relocates Corporate Head Office

The company recently released its Q2 2020 Unaudited results for the period ended June 30th, 2020. Overall, its revenue declined by -34.8% to N394m from N604m in the previous quarter. This is also the same as the net Assets declined by -9.35% from N650m to N589m.

Meyer Plc reported a loss before tax stood at N59m while loss after tax stood at N60.7m.

Unilever to divest most of its tea business but keep parts of Lipton brand

Esan Bolaji
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0
Unilever to divest most of its tea business but keep parts of Lipton brand

Unilever has announced plans to spin off most of its Lipton tea business while retaining parts of it that are doing well.

Unilever executives announced the plan, which was the result of a six-month review. Unilever plans to spin off most of its loose-leaf tea business, but retain it in India and Indonesia, as well as retain its ready-to-drink tea joint ventures with PepsiCo.

The partnership between the two companies has PepsiCo focus on Lipton’s ready-to-drink beverages while Unilever handles the leaf tea. Each company owns a 50% stake.

The rest of the tea portfolio will be spun off into a separate independent entity.

Unilever to divest most of its tea business but keep parts of Lipton brand

The tea business that will be separated generated revenues of €2 billion in 2019. This was made in notification shared on the Nigerian Stock Exchange for and on behalf of the Board of Unilever Nigeria Plc.

The leaf tea business, in general, has been struggling, losing market share to coffee and to herbal tea. Spinning off the business puts Unilever in a position to sell it, possibly with a licensing-back deal.

Strategic review of tea

In January, Unilever announced a strategic review of the global tea business, which includes leading brands such as Lipton, Brooke Bond and PG Tips.

“The balance of Unilever’s tea brands and geographies and all of our tea estates have a very exciting future, but this potential can be best achieved we believe as a separate entity, and a process will now begin to achieve this separation, which is expected to conclude by the end of 2021,” CEO Alan Jope.

A statement from CEO Alan Jope

“Performance during the first half has shown the true strength of Unilever. We have demonstrated the resilience of the business – in our portfolio, in a continued step-up in operational excellence, and in our financial position – and we have unlocked new levels of agility in responding to unprecedented fluctuations in demand.

We have also taken action to strengthen the strategic future of the company by announcing proposals to unify our dual-headed legal structure, progressing the strategic review of our global tea business and making new commitments to help protect the climate and regenerate nature.

From the start of the Covid-19 crisis, we have been guided by clear priorities in line with our multi-stakeholder business model to protect our people, safeguard supply, respond to new patterns of consumer demand, preserve cash and support our communities.

Our focus for the rest of 2020 will continue to be volume led to competitive growth, absolute profit and cash delivery, as this is the best way to maximise shareholder value.

I would like to thank every member of the Unilever team for the outstanding commitment they have shown in the most difficult of circumstances.”

Overall performance

Unilever announced its results for the first half of 2020, which show that overall underlying sales declined 0.1%, with developed markets up 2.4% and emerging markets down 1.9%.

The company reported that the underlying sales declined 0.1% with volumes declining 0.3% and price growth of 0.2% while Developed markets grew 2.4% whilst emerging markets declined 1.9%.

Unilever’s turnover decreased 1.6% including a positive impact of 1.1% from acquisitions net of disposals and negative impact of 2.5% from currency

Home Care underlying sales grew 3.2%, with 2.9% from volume and positive pricing of 0.3%. The Foods & Refreshment segment underlying sales declined 1.7%, with volumes down 2.5% and positive pricing of 0.8%.

How about Unilever Nigeria?

According to the information contained in its 2020 half-year report, Unilever Nigeria suffered a revenue loss of 40% for the three months period ended June 2020 The company reported a revenue of N14 billion between April and June 2020 compared to N23.4 billion for the same period in 2019.

The drop in revenues negatively impacted its half-year 2020 results when compared to the same period last year. For the first half this year (January to June 2020) Unilever reported N27.3 billion compared to N42.6 billion same period last year. The drop in revenue threw the company into a loss per share of 9 kobo compared to 61 kobo same period in 2021.

Recent acquisitions

During the second quarter, we completed the acquisitions of the health food drinks portfolio of GlaxoSmithKline in India, Bangladesh and 20 other predominantly Asian markets. Acquiring the iconic brands Horlicks and Boost are in line with Unilever’s strategy to enhance its presence in healthy nutrition.

From the app to the digital ecosystem: the new generation of Mercedes me Apps launches

George Martins
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0
From the app to the digital ecosystem: the new generation of Mercedes me Apps launches

Mercedes-Benz is presenting the new generation of Mercedes me Apps and its own, standardised developer platform. This sees the Mercedes me App, which links the vehicle with the smartphone and was unveiled in 2015, turning into a digital ecosystem.

On this joint basis, new services can be developed flexibly and individually in future. The offer initially encompasses three apps: Mercedes me, Mercedes me Store and Mercedes me Service.

the new generation of Mercedes me Apps launches - BRANDSPUR

The three apps are available to download with immediate effect in the App Store and in the Google Play Store and will be available in over 40 Mercedes me markets by the end of the year.

They were developed in close, international cooperation with partners and customers. The perspective of the users was decisive during development: the new Mercedes-Benz Apps combine improved base functionalities with even more attractive customer experience. They facilitate, for example, shorter update cycles. Operation is even easier and more intuitive at the same time.

the new generation of Mercedes me Apps launches - BRANDSPUR

Britta Seeger, Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for Sales: “The new generation of Mercedes me Apps makes it even easier for our customers to contact Mercedes-Benz around the clock. They can book a service appointment at their preferred dealership or send their next travel destination directly to their car by the app, for example.

We are always focussed on making life easier for our customers. We are continually broadening our range of digital services to this end. The new Mercedes me App generation provides even simpler and intuitive access to our products and new services, such as a function for conveniently opening or closing windows or the panoramic roof by the app.” 

the new generation of Mercedes me Apps launches - BRANDSPUR

Intelligently networked: the new Mercedes me Apps

All Mercedes me Apps will be closely linked with one another in future. This means that only a single log-in using the Mercedes me ID is now necessary, enabling users to switch intuitively and quickly between the apps. Specific functions are allocated to every single app. They are adapted to customer requirements visually and in terms of content.

the new generation of Mercedes me Apps launches - BRANDSPUR

The Mercedes me App links the smartphone with the owner’s vehicle. This enables key status information – such as mileage, range or tyre pressure – to be displayed very conveniently. Digital command functions additionally enable the stationary heater, the soft top or the side windows to be operated by the app, and a brand new feature serves to flash up the headlamps so that the vehicle can be located in a dark car park, for example.

The Mercedes me Store App offers convenient access to the digital products from Mercedes-Benz. It provides a quick overview of the term of each of the Mercedes I connect services and on-demand features used. These can be extended via smartphone at any time, as required.

the new generation of Mercedes me Apps launches - BRANDSPUR

The Mercedes me Service App provides a reminder in good time of service appointments such as service or maintenance work. It displays active warning lamps and recommends appropriate measures, such as checking the tyre pressure at the next filling station.

The app allows appointments with the workshop to be booked directly via smartphone. The app also offers practical how-to videos with interesting information on the ideal use of the vehicle.

the new generation of Mercedes me Apps launches - BRANDSPUR5

The new generation of Mercedes me Apps was developed in an international internal Daimler community, above all together with the USA and China and trialled in close cooperation with customers.

Following initial internal tests, at the beginning of 2020 Mercedes-Benz first began a pilot project in France, Spain and the UK and as of the beginning of June in Ireland and Hungary.

the new generation of Mercedes me Apps launches - BRANDSPUR6

The new apps are now available in the Apple and Google App Stores in 35 markets, which now also include Germany; additional Mercedes-Benz markets, incl. China and the USA are to be phased in in due course.

the new generation of Mercedes me Apps launches - BRANDSPUR7

A common basis: the Mercedes-Benz Mobile SDK

The actual ground-breaking innovation runs in the background with the new Mercedes me Apps, as these are based for the first time on a common, standardised development platform. In 2019 Mercedes-Benz was the first vehicle manufacturer to grant software developers from all over the world access to the Software Development Kit (for short: SDK).

The SDK functions as a type of programming construction kit: it makes available interfaces to the vehicle on which the new apps can build. As part of this, the security of the data is guaranteed at every point in time.

the new generation of Mercedes me Apps launches - BRANDSPUR8

Here Mercedes-Benz has clear guidelines on which data are made available to programmers. The fundamental principle is this: all Mercedes-Benz vehicles have extensive safety and anti-theft systems.

Secure access to systems, data security, data privacy and anti-theft protection are key elements of our research and development activities.

the new generation of Mercedes me Apps launches - BRANDSPUR9

Best Customer Experience 4.0: customer requirements in the digital age

The Mercedes me Apps are a key component of the sales initiative “Best Customer Experience 4.0” in the Mercedes-Benz Cars business division. “Best Customer Experience 4.0” is the brand’s way of focusing its sales on the changing requirements of customers in the digital age.

The aim is to offer customers a seamless and convenient experience whenever they want to contact Mercedes-Benz – irrespective of the time and place or the channel they are using.

the new generation of Mercedes me Apps launches - BRANDSPUR10

That is why Mercedes-Benz is seamlessly blending physical retail with digital channels and is redesigning it with the innovative store and location concepts. At the same time, the company is expecting to achieve a quarter of the global passenger car sales via online channels by the year 2025 together with its sales partners.

The foundation stone for further sales development according to current customer requirements was laid back in 2013 with “Best Customer Experience”, in order to make it even easier for new and existing customers to access the products and services of Mercedes-Benz.

the new generation of Mercedes me Apps launches - BRANDSPUR11

the new generation of Mercedes me Apps launches - BRANDSPUR13

the new generation of Mercedes me Apps launches - BRANDSPUR14

the new generation of Mercedes me Apps launches - BRANDSPUR15

Cadbury Nigeria – Challenging Macroeconomic Environment Disrupts Momentum

George Martins
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0
Cadbury Nigeria – Challenging Macroeconomic Environment Disrupts Momentum

Cadbury Nigeria Plc recently released its H1’20 results. According to the released results, revenue declined by 28% year-on-year in Q2’20, from N10.17bn in Q2’19 to N7.36bn in Q2’20.

In our view, although revenue declined also by 8% in Q1’20, we think that the steep 28% revenue decline in Q2’20 reflected the impact of the COVID-19 pandemic.

The sit-at-home directive and lockdown directive by the Federal Government resulted in a decline in economic activities, as offices, schools, and several other enterprises remained shut for the most part of Q2’20.

We also posit that the resulting effect of possible job losses and by extension, lower household income and consumption resulted in lower demand for the Company’s products in Q2’20. In addition, the sustained border closure, in our view, also had its impact on the distribution and sale of products across markets.

H1’20 revenue declined by 18% YoY, which was a combination of an 8% revenue decline in Q1’20 and a 28% revenue decline in Q1’20.

Cadbury - BRANDSPUR

Exchange Rate Pressures Drive Profitability Southwards

Cost of sales declined by 25% YoY from N8.41bn in Q2’19 to N6.34bn in Q2’20. However, despite the decline in cost of sales in absolute terms, cost margin rose by 300 basis points from 83% in Q2’19 to 86% in Q2’20. We attribute the higher cost margin to the devaluation of the exchange rate.

Consequent to the higher cost margin in Q2’20, gross profit declined by 42% YoY from N2.29bn in Q2’19 to N1.02bn in Q2’20. Operating expenses declined by 25% YoY from N1.59bn in Q2’19 to N1.19bn in Q2’20.

The decline in operating expenses was driven by a 30% YoY decline in selling and distribution expenses from N1.27bn in Q2’19 to N887.13mn in Q2’20. Meanwhile, the decline in revenue was steeper than the decline in operating expense.

Therefore, the Company reported an operating loss of N167.75mn in Q2’20, from an operating profit of N175.12mn in Q2’19. Profit before tax declined from N233.12mn in Q2’19 to a loss of N146.11mn in Q2’20.

In a similar trend, profit after tax declined from a profit of N163.18mn in Q2’19 to a loss of N102.27mn in Q2’20.

Outlook

We revised our FY’20 projections to reflect current realities in the operating environment. The illiquidity in the foreign exchange market is a major risk faced by the Company in sourcing for raw materials for production. The Coronavirus pandemic is also a bottleneck to the growth of the business.

Although we expect to see a gradual resumption in economic activities in the subsequent quarters of the year, we believe that recovery will be slow. On the back of a lower revenue projection in combination with expected higher costs, we revise our FY’20 EPS from N0.75 to N0.13.

Valuation

We also revise our cost of equity downwards from 21% to 15%. The rationale for the downward revision is due to a lower risk-free rate used in our computation. Notably, yields in the fixed income market have declined significantly between our last earnings report and as of the writing of this report.

Using a combination of Discounted Cash Flow (DCF) and Dividend Discounted Model (DDM) valuation methodologies, we arrived at a fair value of N2.80. At current market price, the stock trades at a 58% premium to our fair value. Hence, we believe that the stock is overvalued. Therefore, we maintain our SELL recommendation.

Cadbury - BRANDSPUR

WSTC Research

Leading Tech Brand Baseus Announces 72-h AliExpress Super Brand Day Starting on August 10th

Media Outreach
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0

TOKYO,
JAPAN – Media OutReach – 5 August 2020 – Baseus, a leading
consumer electronics brand, announced a new promotional campaign called “Super
Brand Day” on its official AliExpress store featuring exclusive coupons and unprecedented
discounts up to 71% off. The event is set to start on August 10th (at 0:00
Pacific Time, USA – at 16:00 Japan Time) and end on August 13th. Users can
receive even more special deals and unique gifts by joining the live broadcast
events and signing in continuously to the Baseus
official AliExpress store.
Baseus also welcomes its users to participate in its Facebook fan event to win
an iPhone gift pack.

Since
its establishment in 2011, Baseus has specialized in manufacturing phone
accessories, laptop docking stations, small household appliances, earphones,
phone chargers, screen hanging lights, and car accessories.

This
company is particularly famous for its GaN (gallium nitride) chargers, which
are physically smaller but more efficient than traditional chargers. A few
examples are the world’s smallest 120W
GaN Charger, the world’s
first 65W three-port 2C1A GaN Charger, and the 10000-mAh
45W GaN Power Bank.

Other
exceptional products are the A2
Car Vacuum Cleaner and the i-wok
Screen Hanging Light, which is
perfect for those staring at a computer screen all day. The USB-C
Hub for MacBook Pro, in particular,
has even received the Japan Design Excellence Award. It works both as a HUB and
as a heat dispersing device with 9 port expansion, 40 Gbps transmission, and a
TB3 interface.

Despite being headquartered in Shenzhen (China),
Baseus has a growing global presence through its over 600 flagship stores in
more than 180 countries and regions worldwide.

Below is a more
detailed timeline of the Baseus Brand Day event:

  1. From July
    20th to August 9th: pre-selling activity, exclusive gifts, and special
    time-limited coupons for continuous sign-in and for sharing the link to
    the Baseus AliExpress store;
  2. On August
    10th: Brand Day event broadcast with even more appealing discounts;
  3. From August
    10th to August 12th: Brand Day event special discounts;

About Baseus

Baseus is a consumer electronics brand that
mainly manufactures mobile phone accessories, laptop docking stations, small
household appliances, and car accessories.

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