C&I Leasing declares highest dividend in its history, guarantees continuous success at 29th AGM

C&I Leasing Plc, Nigeria’s foremost leasing and business support services company has declared a dividend payout of N278,350,500 at 20k per ordinary share of 50k each (payable less withholding tax), making it the highest in the last 22 years of dividend payment.

Shareholders unanimously endorsed the payment during the company’s 29th Annual General Meeting (AGM) which held on July 23rd 2020 at the Landmark Towers, Oniru, Lagos but were coordinated by the use of proxies in line with the guidelines of the Corporate Affairs Commission (CAC) aimed at stemming the spread of the Coronavirus (Covid-19) pandemic.

Others joined remotely via live streaming on YouTube.

In his remarks during the meeting, Chief Chukwuma H. Okolo, chairman, C&I Leasing Plc said the dividend warrant will be posted on or before 31 July 2020 to shareholders whose names appeared on the register of members at the close of business on Wednesday, 6 May, 2020.

Citing C&I Leasing’s successes since 1990, Chief Okolo expressed confidence in the company’s ability to maintain its winning streak given its dedication and penchant for teamwork and excellent service delivery in all its business lines.

“C&I Leasing has emerged as the foremost company in its industry,” he said. In any organization or in life, we are running a marathon, not a 100-meter dash.

There might b a few potholes over the next one year, but the board and management remain resolute that the successes in the past 30 years will be more than replicated in the next 30 years for the coming generation.”

While craving for a return to normalcy and reiterating the company’s support, the C&I Leasing chairman commended the federal government, Lagos state government, ministry of health and the Nigerian Centre for Disease Control (NCDC) for assiduously battling the Covid-19 pandemic.

Also speaking during the AGM, Mr. Andrew Otike-Odibi, managing director, C& I Leasing Plc said the company’s 30-year journey is worth celebrating and being “thankful” for, considering the times we live in.

Mr. Otike-Odibi said despite the COVID-19 pandemic, oil price slide and its attendant impact on the economy, the company is keeping in step with its promise to exceed shareholders’ expectation just as it seeks growth opportunities in its marine and telematics business amongst others.

“The marine business is one of our fastest-growing businesses. But in 2020 with the COVID and slide in oil price, being focused on the oil and gas industry, it has taken its own beating in that process.

But as the economy picks up, we expect that the marine business will also pickup because the only clients we have in that business are in the oil and gas industry. So whatever happens in that industry impacts heavily on the business positively or negatively.

“What we are currently experiencing is common to all businesses in Nigeria but we’re thankful that we are still alive and doing well with customers being served properly.

“We’re grooming our telematics business. From tracking cars in our large fleet, it has now grown into tracking vessels and more sophisticated services like fuel monitoring. It is still a young business, but we’ve seen the potential. It is growing and we are grooming the business.

“Going into the years ahead, we’ll beat your dividend expectations.”

The shareholders, who were represented by proxies, commended the board, management, and staff of the business service conglomerate, saying that it has succeeded despite all odds and built a track record worthy of emulation.

Chief Timothy Adesiyan, President of the Nigerian Shareholders’ Solidarity Association (NSSA) who stood as one of the representatives said: “I appreciate very much, the way this company is progressing.

At the time this company started the business, people thought that it will not succeed, but the way C&I Leasing was operating was so impressive that many companies decided to work with you.”

Incorporated in 1990 as a limited liability company duly licensed by the Central Bank of Nigeria, C&I Leasing Plc has enjoyed consistent growth, evolving from finance lease to a business service conglomerate, covering major sectors of the economy including Marine, Oil and Gas, Telecommunications, Personnel Outsourcing, Telematics and transportation etc.

Heineken launches “Back to the Bars” campaign cheering the HoReCa industry

New Heineken® TV commercial gives a fresh perspective on social distancing in bars around the world

Heineken® has launched a new through the line campaign titled ‘Back to the bars’ as part of its global initiative, #socialiseresponsibly.

The global campaign is aimed at supporting the HoReCa around the world, by celebrating their re-opening whilst reminding consumers to behave responsibly.

In fact, only by respecting safety regulations in the “new normal”, consumers will help bars to remain open and therefore will be able to continue to enjoy nights out with friends. The engaging call to action is “socialise responsibly to keep bars open”.

Heineken® has a long history of being a responsible brand. In the past, the brand has used its world-famous creativity to develop campaigns such asEnjoy Heineken Responsibly and When You Drive, Never Drink that make tangible impact.“

Given the unprecedented circumstances we find ourselves in, we looked at how we can play a part in helping our consumers cope with the current situation, and also specifically on how we can support our on-trade partners to weather the extremely challenging business climate. We were inspired by real life experiences that everyone can relate to. Whilst the new bar experience can be awkward and may take time getting used to for customers and bar staff, we wanted to celebrate their return and remind people that respecting the new rules is important. After all, there’s one thing better than the first night out, another night out.

BRAM WESTENBRINK, SENIOR DIRECTOR GLOBAL HEINEKEN® BRAND

The campaign includes 60”, 30”, 15” films, digital, social assets and multiple on trade initiatives to help bars reminding consumers to socialise responsibly in the very moment of consumption, when they are more likely to “forget” while having fun with friends. “Back to the bars” will be launched in multiple countries in 2020.

H1 2020: Heineken discloses preliminary highlights, sets for loss as it cuts value of assets by €550m

Heineken N.V. recently issued the following statement.

In the first half of 2020, HEINEKEN’s markets and businesses were significantly impacted by the COVID-19 pandemic, with unprecedented volatility and uncertainty leading to the withdrawal of guidance for 2020 on 8 April.

Despite these short-term challenges, HEINEKEN remains confident in its ability to navigate the crisis while continuing to build a bright future.

Photo by Jinen Shah on Unsplash

In this context, HEINEKEN has decided to disclose preliminary highlights of its 2020 half-year results ahead of the scheduled publication date. The final results will be published as planned on 3 August 2020.

All figures mentioned below are preliminary, unaudited and may be subject to adjustments from customary reviews.

Based on preliminary figures, first-half net revenue (beia) declined by 16.4% on an organic basis. This is driven by an organic decline of 13.4% in total consolidated volume and an organic decline of 3.6% in net revenue (beia) per hectoliter. Beer volume declined organically by 11.5%.

As expected, the impact of the COVID-19 crisis deepened in the second quarter of 2020. After a low point in April, volume started to gradually recover into June as lockdowns were lifted around the world and customers restored depleted inventories.

Beer volume was most affected in the Americas and Africa, Middle East and Eastern Europe regions with a decline in the mid-teens due to full lockdowns in Mexico and South Africa, followed by Europe with a high-single-digit decline, whilst the Asia Pacific showed the highest resilience driven by Vietnam.

The Heineken® brand performed well in relative terms with a 2.5% decline. The brand grew double digits in 14 markets, including Brazil, China, the UK, Poland, Germany, Ivory Coast and South Korea. Heineken® 0.0 grew double digits with growth across all regions and with particular strength in the US and Mexico.

Operating profit (beia) declined organically by 52.5%. Net profit (beia) declined by 75.8%, leading to a diluted EPS (beia) of € 0.39. Exceptional items will include around € 550 million of impairments on tangible and intangible assets, leading to a reported net loss of around € 300 million.

In Europe off-trade, beer volume grew in the mid-teens and market share increased in key markets. However, given HEINEKEN’s strong position in the on-trade and the structural differences between channels, operating profit was disproportionally affected as on-trade outlets were closed for a large part of the second quarter.

Input costs per hectoliter increased significantly with the combined negative impact of channel and product mix and transactional currency effects.

From late March onwards, HEINEKEN took significant cost mitigation actions leading to an overall decrease in costs for the first half of 2020. The company is committed to further intensify its focus on costs.

HEINEKEN has entered the crisis with great brands, and a dedicated and talented workforce. The company has a strong balance sheet as well as undrawn committed credit facilities.

HEINEKEN will provide more information in its 2020 half-year results report on 3 August 2020.

Nestlé Research & Development Centre in Côte d’Ivoire supports expansion of affordable nutrition in Africa

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Access to affordable nutrition is challenging for many consumers worldwide. Nestlé is accelerating its efforts to develop more affordable nutritious products for consumers, particularly those in emerging countries.

This enables the company to improve its product offerings for lower-income families, many of whom live on a few dollars a day, often resulting in a lack of essential nutrients in their daily diet.

One example is the recent launch of Nestlé Cerevita Instant Sour Porridge, an affordable nutritious solution for Southeast African consumers. It is made with wholegrain cereals and fortified with key micronutrients, which are typically lacking in local consumer diets. The porridge has a higher fibre and protein content and costs about 20-25% less than the similar products available in local markets.

The porridge was developed and launched in about one year by scientists at Nestlé’s R&D Center in Abidjan, Côte d’Ivoire, in collaboration with cross-functional teams from Southeast African markets.

The R&D centre leveraged its science and technology capabilities to develop a porridge that is adapted to local consumer taste preferences and nutritional requirements while minimizing production costs to ensure affordability.

“The current COVID-19 crisis around the world will lead to a further lack of affordable nutritious foods for many vulnerable consumers. We are increasing our efforts to address affordability by rapidly developing, testing, and launching safe, high-quality, affordable, nutritious products that meet the needs of Sub-Saharan African consumers,” says Tesfalidet Haile, Head of Nestlé’s R&D Center in Abidjan.

The porridge was developed with high-quality, locally and sustainably sourced ingredients, while leveraging existing roller drying and dry-mixing technologies.  Nestlé packaging experts also worked alongside local suppliers to develop an affordable, recyclable laminate packaging, which protects the product throughout the shelf-life.

The porridge was first launched in July in Zimbabwe in a limited number of stores, with a nationwide launch and rollout in more countries planned for later this year.

Nestlé’s R&D Center in Abidjan, Côte d’Ivoire is part of the global Nestlé R&D network, which consists of 23 locations worldwide. The centre has food technologists, scientists, and engineers who primarily specialize in the innovation of cereal, dairy, snack, and beverage solutions.

It also collaborates with local universities and innovation partners.  Last year, Nestlé launched an R&D innovation challenge in Sub-Saharan Africa, which saw three start-ups embark on a 4-month residency in the Nestlé R&D Accelerator for Sub-Saharan Africa, located at the R&D Center in Abidjan.

Soaring food prices: People say they’re paying more amid COVID – here’s why

Almost two-thirds say the cost of groceries has increased even as economies face deflationary pressures.

The weekly grocery bill for 38-year-old mother of two – Uppi Shah – has gone up some 30% since she started shopping exclusively online, because of the coronavirus pandemic months ago.

“I feel like as soon as we started doing online shopping, there was a spike in the grocery cost,” says the Toronto-area product manager at a telecom company, who is currently on maternity leave.

While Shah says it can be easier to order groceries online and pick it up from the store with minimal contact from workers, she’s found one of the items costing her more is vegetables.

“Many times, we’ve ordered products, and it’s already gone bad,” says Shah. “I think one time we got something that was already expired or expiring that day, and then we’ve had to throw it out.”

Still, Shah says she will continue to order groceries online because she’d rather do that and pay more than go inside a store during the pandemic. It’s also more convenient with two small children at home.

Shah is one of many people around the world who say they’re paying more for food since COVID-19 began. In a recent survey of nearly 18,000 people across 26 countries, almost two-thirds (63%) said the cost of food, groceries and household supplies has increased since COVID-19 – the highest of all the 11 cost categories presented.

People in emerging markets are most likely to agree with this with those in Argentina and Turkey (86%), Chile, Mexico and South Africa (80%) at the top of the list.

Experts say a combination of higher costs to produce, process and distribute food, an increase in automation and other measures such as physical distancing and the use of protective gear and training, along with reduced capacity during COVID-19 are factors contributing to higher food prices.

Sylvain Charlebois, Professor and Senior Director of Agri-Food Analytics Lab at Dalhousie University in Nova Scotia, Canada, said higher costs are here to stay until next year.

“To get food to market, companies across the supply chain will need to charge more,” said Prof. Charlebois. “To prevent sticker shock, the industry will incrementally increase prices over an extended period, which may end well into 2021.”

The tale of two inflation rates

He adds that the decoupling of two inflation rates – core and food – will make a 4% food inflation rate feel more like a 10-12% increase for the average consumer buying food.

“The macroeconomic backdrop of this is deflationary pressures that are affecting many other aspects of our economy, mainly in the West,” said Prof. Charlebois. “To offset the effects of a higher-than-usual food inflation rate in a deflationary environment will be our grocers most significant challenge.”

The food inflation index hit 4.5% in the world’s largest economy – the U.S. – over the last 12 months to June, according to the Bureau of Labor Statistics. While food prices surged, the U.S. inflation rate, excluding volatile components of food and energy, rose just 0.2% in June – it’s a first monthly increase since February.

It’s a similar story in other major economies. Food prices rose 11.1% in China in June from a year ago, while unprocessed food prices in the 19-bloc eurozone rose 5.6%, according to Eurostat. Annual inflation in the eurozone was up just 0.3% in the same month.

Jane Kolodinsky, Professor and Chair of the Department of Community Development and Applied Economics at the University of Vermont, said different sectors have had different experiences, and in some cases supply chains have not been able to keep up with the hoarding behaviour of consumers.

“Some sellers may have taken advantage of and increased prices of these goods. These include cleaning supplies,” said Kolodinsky. “In some cases, in the U.S., supply chains have increased production and consumers are ‘hoarding’ less.”

But in other cases, larger food supply chains have experienced difficulties due to labour shortages as people become sick and are unable to work including those in processing facilities where people are in close contact, according to Carolyn Dimitri, Associate Professor of Nutrition and Food Studies at New York University.

“Places to expect problems are harvesting of berries, fruits, and vegetables; packing of fruits, vegetables or meats; processing facilities that have close human contact,” said Prof. Dimitri.

“The problems will be more acute for perishable products that can’t be stored. I believe this is going to continue periodically, as long as the pandemic is out of control, for both domestic and imported foods.”

COVID-19 hits food supply chains

The beef index in the U.S. increased 20.4% in the last three months to June – as processing facilities shut down or slowed operations because workers were getting sick with COVID-19.

Half of the people (50%) surveyed globally said they’ve had to purchase more expensive food, goods and services since the outbreak began or pay for delivery charges due to store closures and a shortage of supplies.

Trey Malone, Assistant Professor at the Department of Agricultural, Food and Resource Economics at Michigan State University, said production capacity for meat may have returned to reasonable levels, but that doesn’t mean the supply chain has entirely rebounded.

“The limited production capacity of the larger pork and beef processing plants can only be resolved by time, if for no other reason than it takes some time to raise animals,” said Prof. Malone. “I would anticipate COVID-19 playing a role in U.S. meat prices for some time to come.”

In terms of harvest for fruits and vegetables, he said keeping an eye on case numbers in critical speciality crop states such as Michigan, California and Washington are also key.

“If those numbers [COVID-19 cases] rise too dramatically, we might also see some constraints on access to fresh fruits and vegetables,” said Prof. Malone.

Industry’s biggest competitor is your kitchen

Another big factor behind why people say the cost of food and groceries have increased is because they’re cooking and eating more at home due to COVID-19 lockdowns and restrictions.

The food at home index in the U.S. rose 5.6% over the past year to June ̶ it’s largest 12-month increase in nine and a half years. Experts say this will have a lasting impact on the food industry, even when the pandemic is over.

Prof. Charlebois said confinement has created a new benchmark for food spending for most households, making the foodservice industry’s most fierce competitor our kitchens.

“Most of us have been cooking at home for months, which makes it impossible to spend less. But, the food industry has contracted, and total sales have dropped significantly because we’re not spending as much eating at home as we did at restaurants,” said Charlebois. “It will be difficult to get us out and about and spend money at the restaurant since it does cost more.”

With food prices going up, compounded by a weaker demand base, Charlebois expects more people cooking at home, at least for a while – especially if deflationary pressures continue.

Prof. Malone adds consumers were already exploring last-mile delivery options before the pandemic and he thinks it will be “hard to put that genie back in the bottle.”

“We’ve seen an incredible shift toward restaurant and grocery delivery services, which I would expect will stay around for a long time,” said Prof. Malone, but he also adds that with much of the world now in a recession – shifting from restaurant food to grocery store food is one of the defining changes of how consumers eat during an economic downturn.

Prof. Kolodinsky agreed to say households are facing layoffs and unemployment and preparing food at home is less expensive.

“It seems that the trend is leaning toward people continuing to eat at home, with food away from home as a luxury,” she said.

Meanwhile, for Shah, she thinks the pandemic has given her family a chance to reset how they eat versus going down a “very slippery slope” of going out to eat and getting takeout more often.

“I think we will continue to go out when this is all over, but we will just be more mindful of why we’re spending more,” she said.

Comfort food: Women more likely to admit to overeating, under exercising amid COVID-19

You only have to look as far as social media to be bombarded with images of recipes and what people are eating and cooking during this period of isolation amid the coronavirus pandemic.

Food or a lack thereof has become the forefront of what people are thinking about as we are restricted from indulging in other social behaviours. And, while the meals might look enticing and satisfying from the pictures, how many of you are overeating to cope with stress or anxiety during this outbreak?

In a global survey of more than 16,000 people across 16 major countries, overeating is cited as the third biggest ailment or health condition that respondents say they are suffering from as a result of COVID-19 after underexercising and anxiety.

Women are more likely to admit they are overeating compared to men in 15 out of the 16 countries with the biggest gap between the genders in Canada and Russia (a 13 percentage-point difference), followed by the United Kingdom (12), India (10), Australia, South Korea and the United States (9).

Added to this, women are most likely to say they’re overeating in Brazil (39%), South Africa and Mexico (29%), Canada (28%) and the U.K. (25%).

Experts say a combination of gender coping mechanisms, social stereotypes and disruption of routines along with additional burdens due to COVID-19 may be contributing to why women feel they are eating more than they otherwise should or would.

Emotional eating, meal sizes & stereotypes

Barbel Knauper, Professor and Director of Health Psychology Laboratory at McGill University in Montreal, said emotional eating, which is overeating in response to negative emotions, is more prevalent in women at all times than it is in men.

“Generally, this might be related to higher rates of depression and anxiety in women than in men, with emotional eating being one of many coping mechanisms to deal with negative emotions,” said Prof. Knauper.

“It might not be that women and men view eating differently but rather that emotional eating is a more common coping mechanism for women who are also more likely to have symptoms of depression and anxiety.”

Anxiety was the second most cited health concern in the study with at least a quarter of people in 11 countries saying they are suffering from this because of the pandemic, while depression was the fifth biggest concern. Women were more likely than men to cite anxiety and depression in all countries, except for Japan and China where more men reported feeling depressed.

Claus Vogele, Professor of Clinical and Health Psychology, and Annika Lutz, Postdoctoral Researcher in Clinical Psychology at the University of Luxembourg, said women are known to experience eating problems more frequently because they report overeating more often, and also restrict their eating behaviour to change their body weight or shape more frequently than men.

“This could make them more prone to reporting overeating, i.e. eating more than their diet plan allows,” they said.

“Social stereotypes about adequate meal sizes also differ for men and women. In consequence, large meals are socially more acceptable for men, which could contribute to comparatively fewer reports of overeating among men.”

Shilagh Mirgain, Psychologist at the University of Wisconsin School of Medicine and Public Health, agreed to add that men are more likely to admit to eating larger meal portions, while women are more likely to report a sense of loss of control over how much they eat and experience negative consequences such as dissatisfaction with body image.

“Women are also more likely than men to internalize stress and beat themselves up mentally,” said Dr. Mirgain. “Emotional overeating is seen more often in females than in males, perhaps as a result of the greater intensity of emotions expressed and experienced by women.”

In terms of body image, women in the survey were more likely to say they under-exercising compared to men in all of the countries except for Mexico, Spain, China and Brazil.

Loss of structure, boredom & age

Experts said these social factors and biological coping mechanisms are being exacerbated by social distancing and isolation because of the pandemic.

People are experiencing a loss of structure, and the loss of regular coping strategies such as going to the gym, while grocery shopping and stockpiling food can also be overwhelming, according to Dr. Mirgain.

“Not being able to access certain foods a person typically eats can bring up a lot of anxiety. When things feel outside our control and there is increased anxiety and feelings of helplessness, it’s easy to turn to food for self-soothing,” said Dr. Mirgain.

“Under significant stress, most people automatically revert back to past coping strategies. For women, this may include a vulnerability to resort to emotional eating to cope.”

Meanwhile, Prof. Knauper adds that one of the main reasons for emotional eating is boredom and people are experiencing this more as they spend most of their time at home.

“One could do further analysis to see whether it is in relation to living alone, for example, in which case younger women may experience more boredom than their older counterparts, causing them to overeat more,” said Prof. Knauper.

Younger women – those aged 34 and under – were most likely to cite overeating of all the age groups. They were also most likely to say they are suffering from insomnia, anxiety and depression, according to the study.

Prof. Vogele and Lutz said eating problems frequently occur first during adolescence and young adulthood and this includes overeating, dieting, but also clinical manifestations of eating disorders.

Dr. Mirgain also said that it is during this phase of life when we enter adulthood and go through lifestyle changes such as getting a higher education, getting married or living with a partner and parenthood.

“During this developmental phase, it can be easy to feel lost or even rudderless. As a result of this, women may turn to food as a coping strategy and vulnerability to overeating may be the highest,” said Dr. Mirgain.

Added to this, women are often caregivers in a family, and their responsibilities may have increased on top of what they already do in the home because of the pandemic. As a result, self-care such as regular exercise and healthy eating may be put “on the back burner.”

How to cope without overeating

Experts agree there are various ways for women to soothe themselves with things other than food so that excessive weight gain from overeating and less exercise doesn’t put them at risk of developing long term illnesses such as diabetes.

Prof. Knauper said it’s important to identify and monitor new behaviours that have already set in such as eating while watching Netflix, which people are likely doing much more now, and how to break them with more adaptive behaviours.

“The good news is that the new habits are likely not yet deeply established and thus are still relatively easy to change,” said Prof. Knauper.

Dr. Mirgain recommends women process their emotions versus “stuffing” them by writing about it in a journal, talking to a trusted and safe person, or creating something to help express them.

“Express your emotions by making something, such as an art project, a vision board, a collage, baking something, TikTok dancing, gardening or writing,” she said. “Reach out to people, do video chats, plan some social time virtually to build your support base.”

She also said it’s important to be compassionate to ourselves and prioritize our self-care to help keep our immune systems healthy like getting regular sleep.

“Mindful awareness of the feelings and triggers, knowing that you are not alone and others are feeling the same way, and then offering some kindness to yourself through words, touch, actions [help],” said Dr. Mirgain.

Meanwhile, Prof. Vogele and Lutz recommend finding time to exercise at home and outside and sticking to a time slot. But if you do indulge in food – enjoy it slowly.

“Pay attention to the taste and the experience of eating and make it a special occasion,” they said. “This way you make it a treat instead of gobbling down food.”

FG increases Abuja-Kaduna train fares by 100%

Abuja-Kaduna rail services will resume on July 29 with an increased fare. Prices have doubled to ₦3,000 for the economy class, ₦5,000 (business) and ₦6,000 (VIP). Trains will operate at 50% capacity to observe distancing.

The disclosure was made by the Minister of Transportation, Rotimi Amaechi, during an inspection tour and test run of the 10 newly acquired coaches and 2 locomotives deployed on the Abuja to Kaduna rail corridor.

Nigeria’s transport minister said the increase was necessary to cover the running cost of operations which is ₦120 million per month.

According to the Transport Minister, “In a month (pre-COVID-19), we get about N120 million, and if we run like this (half capacity), we will realize N60 million. It means that we need another N60 million to complete the running cost.” 

‘’It is, therefore for the above reason that the rates have been increased as follows: First class, N6,000, Business Class, N5,000 and Economy, N3,000 to enable Nigeria Railway Corporation (NRC) meet up at least with the running cost.’’ 

Amaechi also revealed that President Muhammadu Buhari has approved an increase in train fares due to the fact that the train will now be conveying half its capacity in order to maintain social distancing.

IMF records $1.9 billion in operating income

On April 27, 2020, the Executive Board of the International Monetary Fund (IMF) completed its annual review of the Fund’s income position for the financial year ending April 30, 2020 (FY 2020) and set the margin for the lending rate for IMF credit for FY 2021 and FY 2022.

FY 2020 Income Position 

Net operational income, of about SDR 1.4 billion (US$1.9 billion), mainly comprising income from lending and investments, remained strong for FY 2020, broadly in line with the April 2019 estimate. Robust income from lending reflects the ongoing elevated use of Fund credit.

Managing Director Kristalina Georgieva arrives and starts her first day of work at the IMF
  • Net operational income, mainly comprising income from lending and investments, remained strong for FY 2020 and is expected to remain so in FY 2021–2022.
  • Robust income from lending reflects the ongoing elevated use of Fund credit that is expected to remain high, reflecting the Fund’s support to members to help address the COVID-19 pandemic.
  • An unrealized pension-related accounting adjustment that is projected in FY 2020 offsets net operating income and the resulting loss will be absorbed through the Fund’s reserves, which remain sizeable.
  • The Executive Board agreed to maintain the margin for the rate of charge on IMF lending unchanged at 100 basis points for financial years FY 2021 and FY 2022.

An unrealized pension-related adjustment in FY 2020, stemming mainly from the actuarial remeasurement of staff retirement plan assets and liabilities, as required by the accounting standard IAS 19, is expected to offset the Fund’s net operational income, substantially contributing to a net loss of about SDR 1.1 billion (US$1.6 billion) for the year.

The net loss will reduce the IMF’s precautionary balances, which are projected to amount to SDR 16.5 billion (US$22.6 billion) at end‑FY 2020.

The Executive Board also adopted other decisions that have a bearing on the Fund’s finances. These included decisions to transfer income from the Fixed-Income Subaccount of the Fund’s Investment Account (IA) to the General Resources Account (GRA) and to reimburse costs to the GRA.

Projections of the Fund’s income are currently subject to larger than normal uncertainties related to the impact of the COVID-19 pandemic on key assumptions.

Uncertainties associated with the discount rate used to measure the Fund’s retirement plan obligations and asset returns can have a large impact on the actual outcome, given the heightened volatility in financial markets in the wake of the pandemic.

The FY 2020 annual financial statements will update for the impact of changes in key assumptions made at the time of the April projections.

FY 2021–2022 Lending Rate and Income Position 

The IMF’s basic lending rate for member countries’ use of IMF credit is the SDR interest rate plus a fixed margin. The Board sets the margin for a period of two financial years, in line with the principle that the margin should be stable and predictable.

In April 2020 the Executive Board agreed to maintain the margin for the rate of charge unchanged at 100 basis points for financial years FY 2021 and FY 2022.

As noted above, operational income for FY 2021 and FY 2022 is expected to remain strong, with projections pointing to annual net income of SDR 1.4 billion (US$1.9 billion) and SDR 1.7 billion (US$2.4 billion), respectively.

However, these projections are subject to a high degree of uncertainty related to the scale of new lending associated with the COVID-19 economic fallout, as well as the timing and amounts of disbursements under approved arrangements included in the projections.

Additional key uncertainties relate to actuarial assumptions such as the discount rate and the performance of the Fund’s investment and retirement plan asset portfolios in the wake of the pandemic.

Continued positive projected net income will allow the IMF to continue to accumulate precautionary balances.

Nielsen Launches Next Gen Methodology for Its Flagship Digital Measurement Products

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Nielsen announced sweeping changes to its digital measurement methodology, ushering in a new era of privacy-centric measurement that provides comparable, cross-platform metrics for both marketers and publishers.

As part of the transformation of its measurement, Nielsen is reimagining its offerings to ensure it has the flexibility to adapt to ongoing changes in the technology and privacy landscape.

The digital ecosystem is in a state of flux with evolving restrictions on consumer consent and decreasing reliance on cookies. Under these conditions, digital companies are implementing new privacy safeguards that are requiring workflow redesigns and different approaches to coordination with data partners.

With Nielsen’s new methodology announced today, media owners will be able to better monetize their assets, optimize their spend and make comparisons across media.

In addition, media buyers will benefit from the ability to validate cross-platform campaign delivery and confidently make guarantees based on the trusted Nielsen TV ratings data that the industry trades on today.

“Over the last year, we’ve been laser-focused on transitioning Nielsen to become a platform company. With a privacy-centric lens, we are creating a flexible platform that we can adapt to new technology, data and regulatory changes,” said Karthik Rao, Chief Operating Officer of Nielsen.

“We believe these changes will also position our clients to monetize their assets today and well into the future. We expect these investments to drive significant value for the rapidly growing digital ecosystem.”

Nielsen’s ownership of the technology stack, back-end infrastructure and data sources will enable the company to move swiftly to launch new products, feature sets and data insights that maintain the quality and continuity of its measurement services and future proof its digital business.

Additionally, as Nielsen combines television and digital data assets onto a single platform, Nielsen can more efficiently provide holistic measurement across all premium video, which is becoming increasingly important to advertisers and the industry.

“Nielsen’s transformation of its digital methodology is essential to providing the industry with cross-media measurement that empowers buyers and sellers to optimize their spend,” said Mainak Mazumdar, Chief Data and Research Officer at Nielsen. “We are creating the foundation that will allow us to continue to instil confidence, deliver comparability and enable coverage in a cookieless future.”

This new digital methodology will ensure that Nielsen can provide comparability and transparency across third-parties and the open web; broaden coverage and deepen granularity of reporting of personal and connected devices; and foster more resilience in measurement by reducing reliance on third-parties and unreliable digital identifiers.

Nielsen’s Digital Measurement suite, including Digital Content Ratings, Total Content Ratings, Digital in TV Ratings, Digital Ad Ratings and Total Ad Ratings, will be underpinned by:

  • Nielsen’s gold-standard media panel truth sets, census data collection technology, proprietary bias correction and calibration models and diverse third-party partner assets;
  • A proprietary network of walled gardens and platform data providers, with a global footprint that taps into rich audience data to capture volumetrics and demographics;
  • A large ecosystem of publishers across the open web with scaled data augmented with Nielsen-verified demographics; and
  • Novel privacy-centric audience deduplication methodologies.

The new methodology will be rolled out in phases to ensure continuity of measurement to its clients beginning in early 2021.

Nielsen Holdings plc is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Nielsen is divided into two business units.

Dangote Cement posts N126.41 billion profit after tax in 6 months

Africa’s largest cement producer, Dangote Cement plc, has announced a Profit Before Tax (PBT) of N162.90 billion for the six months ended June 30, 2020, even as two block makers have emerged winners in its ongoing Spell and Win a million national consumer promo.

According to the unaudited results of the company released on the floor of the Nigerian Stock Exchange (NSE), the declared profit was 4.7 per cent higher than N155.49 billion in the corresponding period of 2019. The results indicate a resilient half-year 2020 performance despite the impact of COVID-19.

Its Profit before tax was ₦N162.85 billion for the period ended June 2020 from ₦ 155.48 billion reported for the period ended June 2019. The company’s cost of sales went up to N202.42billion in H1’20 from H1’19 level of N193.17billion, up 4.8%.

The Group revenue went up to ₦476.9 billion, Group Earnings before interest, taxes, depreciation, and amortization (EBITDA) was ₦218.1 billion representing a 45.7 per cent margin while Pan-Africa EBITDA was up by 31.6 per cent to ₦31.5 billion; a margin of 21.7 per cent.

The period under review saw the maiden clinker shipment from Nigeria via the Apapa Export Terminal to Senegal in June while plans are on track to ship more vessels of clinker to West and Central Africa in the second half of 2020.

Speaking on the results, Group Managing Director, Dangote Cement, Michel Puchercos, said: “I am humbled by the fact that we continue to be in a strong position despite the economic downturn that the world is facing due to COVID-19.

Although April was greatly impacted by lockdowns and restrictions across our operations, we experienced a strong quarter. We achieved a record high volume and EBITDA margin in Pan-Africa of 4.7Mt and 21.7 per cent respectively. Group EBITDA was up slightly despite the impact of COVID-19.”

He added, “I am particularly pleased to announce that Dangote Cement shipped its first clinker cargo to Senegal from our new cement terminal in Apapa, Lagos. It has been a long journey for Nigeria, from being one of the largest bulk importers of cement to be self-sufficient in cement production, and now an exporter of clinker.

“We are on track to ensure West and Central Africa are cement and clinker independent, with Nigeria as the main supply hub. We want to continue developing regional and continental trade between the ECOWAS countries and beyond.”

On the company’s measures against the COVID-19 pandemic, Mr Puchercos stated, “We are committed to protecting our team members and communities by being fully compliant with health and safety measures. We remain focused on adapting to the rapidly evolving markets in which we operate. We continue to deploy our efforts to maintain our cost competitiveness while ensuring that our balance sheet is resilient.”

Barely a week after its launch, two-block makers from Lagos and the Oyo States have become first-star prize winners of N1 million each in the ongoing Dangote Cement Bag of Goodies Season 2 Consumer Promo.

The promo, which the management said was partly to reward loyal customers and ameliorate the impact of COVID-19 pandemic on consumers, offered the winners cash prizes apart from other commercial and household items, and it is expected to run from July 15 to November 15, 2020.

A block maker based in Lanlate, in Ibarapa East Local Government Area of Oyo State, Stephen Ojediran, who emerged the first N1 million winner in the “Spell Dangote and be a millionaire” promo, said he got the winning letters from among the 500 hundred bags of cement, which he bought to make blocks for customers.

Apart from the N1million, Mr Ojediran said that he also won several recharge cards and extra N2,000 in the promo.

On what he would do with his winnings, he explained that he is going to invest the N1 million to expand his block making business. Said he: “I am very happy for becoming one of the first sets of people to win in the Dangote Cement Promo. I intend to use the money to expand my business. I am going to buy more bags of cement to produce more blocks.

“I thank Dangote Cement company for organizing this promo in this era of COVID-19 and I believe the money will go a long way to reduce the pain of the pandemic in the country”, he added.

Another lucky winner, the Managing Director of Afolabi Adefila Block Industry, said that he has been a user of Dangote Cement since the inception of his business, which he started several years ago.

According to him, he buys over 300 bags of Dangote Cement weekly for his block factory located in Lagos. “I patronize only Dangote Cement. This money is timely, most especially during this era of COVID-19. Dangote has been doing a lot to ameliorate the challenges of COVID-19 in Nigeria.

I am aware of what the company has been doing to reduce hardship in Nigeria. The promo is just an added effort to what Dangote has already done in terms of poverty alleviation”, he said.

Reacting to the news of the first winners, the Block Makers’ association Secretary, Mr Aina, said that he is excited that members of his association have emerged as the first set of winners of the ongoing Dangote Cement promo.

He described Dangote Cement as best in terms of quality, saying the promo would help improve the association’s members’ revenue. He lauded the company’s innovate efforts at producing the best products for building construction from the stable of Dangote cement.