A director at Uac Of Nigeria Plc bought 10,000,000 shares at 11.650NGN and the significance rating of the trade was 75/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Nigeria H2'19 Outlook - Feeble feet on thorny grounds Narrow opportunity window amid easing global monetary conditions: A sense of urgency is required for Nigeria to derive optimal benefits from the sudden increase in global liquidity conditions occasioned by the switch to accommodative monetary policy by central banks in developed markets. IMF projections indicate, that global GDP growth could ease to 3.3% for FY’19 due to weaker growth in the...
Buhari orders NNPC to take over operations of OML 11 President Muhammadu Buhari has ordered the Nigerian National Petroleum Corporation (NNPC) to take over the operation of the entire Oil Mining Lease 11 (OML 11) from Shell Petroleum Development Company. In a letter addressed to the NNPC, the President directed the Nigeria Petroleum Development company (NPDC), the exploration subsidiary of the NNPC, to take over the operation by 30 April 2019. OML 11 lies...
Mixed bag of performances for FMCGs In line with the year-long trend observed in the sector, we expect revenue growth for consumer goods companies in Q4’18 to remain majorly driven by volume performance. Specifically, we forecast stronger topline figures in the seasonally stronger fourth quarter amid higher consumption levels in the festive period, and also mildly buoyed by stronger commercial activity during the electioneering se...
FEC holds special budget meeting as DMO issues Sukuk President Buhari is scheduled to chair a special session of the Federal Executive Council today as the members deliberate on the draft 2019 budget. The meeting is expected to produce a completed draft of the 2019 Appropriation Bill which will be forwarded to the National Assembly. According to the earlier approved 2019-2021 Medium Term Expenditure Framework (MTEF), the 2019 Budget ...
The Week Ahead Access Bank is reportedly in talks to acquire Diamond Bank as early as Q1’19. We note that Diamond Bank has struggled with its non-performing loans and capital adequacy ratio—estimated at 16.3% as of September 2018, just above the regulatory threshold of 15%—and has also drawn attention over its liquidity health ahead of its Eurobond maturity in May 2019. Furthermore, the Chairman and three non-executive...
Volatile trading week ends on a negative note The market ended trading for the week on a mildly negative note, moderating 9bps on the day but closing +23bps higher w/w. The Consumer Goods sector (d/d: +11bps; w/w:+165bps) was the best performer, driven by gains in NESTLE (d/d: +69bps; w/w: +735bps). Meanwhile, the Oil & Gas sector (d/d: +160bps; w/w:+127bps) also closed in the green thanks to a solid performance from SEPLAT (d/d:+478bps; w/w:+696b...
UACN’s Q1’18 results showed a 25% y/y and a 10% q/q decline in Revenue to ₦18.3 billion (Vetiva: ₦19.7 billion), the lowest quarterly Revenue in eight quarters. The performance was driven by sustained weakness in the Animal Feeds (-40% y/y) and Real estate (-62% y/y) businesses, both impacted by intense competitive pressure and unfavourable demand conditions respectively. Gross margin in the quarter came in at 19.5% vs. our 21.0% estimate – howbeit an improvement from the 16% recorded in Q1’...
Dismal FY’17 earnings, strategic review on course Despite an 8% y/y rise in Revenue, UAC of Nigeria (UACN) recorded a 79% y/y decline in PAT (₦1.3 billion) - weakest bottom line performance in 16 years. The dismal performance was driven by sharp rises in expense lines which outpaced weak topline growth. Notably, FY’17 gross profit moderated 6% y/y following a 261bps deterioration in gross margin – specifically dragged by cost pressure...
UAC of Nigeria (UACN) reported disappointing FY17 earnings results over the weekend, posting EPS of NGN0.50, -75% yoy. This implies a Q4 17 loss per share of NGN0.29 vs EPS of NGN0.57 in Q4 16 and EPS of NGN0.27 in Q3 17. The company also announced DPS of NGN0.65, -35% yoy, which was also below our expectations.
UACN’s 9M’17 results showed a 21% y/y rise in revenue to ₦69 billion, albeit 5% below Vetiva estimate - following an underperformance in Q3’17. Whilst UACN recorded its first gross margin expansion in six quarters in Q3’17 (up 109bps q/q to 16%), a surge in OPEX in the quarter weakened operating margin to 2% (Vetiva: 7%). Performance also came in weaker on a y/y basis with gross margin weakened by persistent cost pressures across most operating divisions – down 604bps y/y to 16%. Despite stron...
Despite the bullish trend in the local bourse and the strong rally in the FMCG space (YTD, Food: 45%, HPC: +45%, Brewers: +30%), the share price of UACN continues to remain sticky with sentiments largely sour. To our minds, the apathy reflects weak performance in the first half of the year (PAT: H1 17: -55%, Q2 17: -55%) as well as share dilution risk given expectation of equity capital raise by way of rights issue. Food inflation weighs on margin: Given an import-COGS ratio of less than 1%, ...
Earnings dip as input and interest costs bite                                                  UAC of Nigeria recently released its H1’17 financial results showing a strong 32% y/y growth in topline to ₦48 billion. The Food & Beverages and Real Estate segments remained the strongest performing of the five segments, with revenue up 37% and 77% y/y respectively. Specifically, the Feeds businesses (Grand Cereals and Livestock Feeds) prov...
​Earnings miss on elevated interest charge UACN recorded an impressive 41% y/y revenue growth in the first quarter of 2017, outperforming Vetiva estimate by 17%. This growth was majorly driven by price increases implemented in the later parts of 2016 and better volume performances across some operating divisions. Cost pressures in Q1’17 remained a challenge for the Conglomerate as price increases were unable to save Q1’17 gross margin from a 598bps y/y contraction to 17% (Vetiva estimate...
UACN recorded a strong 29% q/q revenue growth in the seasonally strong fourth quarter of 2016, outperforming Vetiva and Consensus estimates by 22% and 29% respectively. With this, FY’16 topline rose 15% y/y to ₦84.6 billion, nearing the record high ₦85.6 billion revenue achieved in 2014. Looking at the segmental breakdown, the Group’s topline performance was supported by growth in the Food & Beverages (up 18% y/y), Real Estate (up 25% y/y) and Logistics (up 9% y/y) segments. The P...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
UACN recorded an impressive 18% y/y revenue growth in the third quarter of 2016, with the topline outperforming Vetiva and Consensus estimates by 14% and 15% respectively. With this, 9 months revenue growth for the Conglomerate came to 5%, compared to -2% in H1’16. With all other operating divisions recording revenue declines as at 9M’16, the Food & Beverages segment (up 11% y/y) singlehandedly buoyed the Group’s topline performance. We believe UACN will continue to ride on the strength of...
​ In spite of tepid consumer demand, UACN reported a mild 2% y/y revenue decline in H1’16 (outperforming Vetiva’s -7% y/y estimate). This comes following a re-consolidation for its Warm Springs Water business (previously held for sale) in FY’2015 and Q1’16 results which raised topline marginally in both periods. Looking at the Q2 performance stand alone, revenue was up 9% q/q – 8% below Vetiva’s estimate. According to management, minimal increases in retail prices and some volume g...
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