Report
Victor Dima
EUR 14.84 For Business Accounts Only

Unilever Nigeria (SELL, TP NGN 21/share) - Q4 16A: Solid EPS beat driven by 20% y/y sales growth and opex control


  • Q4 16A revenue increased by 20% y/y to NGN 19.9bn, c.10% above consensus and 3.9% above ACe
  • Gross margin decreased 915bps y/y to 28.1%, 330bps below consensus (31.4%) but 215 above ACe (26%). Despite gross margin pressure, 24% y/y reduction in operating expenses helped EBIT margin to remain flat y/y at 13.6%; 578 bps above consensus and 815 above ACe (consensus: 7.8% and ACe: 5.4%)
  • EPS increased 42% y/y at NGN 0.40/share vs. consensus at NGN 0.15/share and ACe at NGN 0.05/share. 


Underlying
Unilever Nigeria PLC

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Victor Dima

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