A director at Flour Mills Nigeria sold 433,286 shares at 30.000NGN and the significance rating of the trade was 52/100. 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 years cl...
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....
Strong product portfolio will drive growth. Flour Mills of Nigeria has released its audited FY’21 earnings report, showing revenue growth (+34% y/y) that outpaced our 30% y/y projection. Despite FX challenges and cost volatilities, the company managed to preserve and enhance the positive revenue performance in its PAT performance (+124% y/y to ₦24.5 billion). The company has also proposed a dividend of ₦1.65, an 18% upside from the ₦1.40 declared in the FY’20 period, and a 5.7% divide...
President Muhammadu Buhari declared a shutdown of business, economic and social activities in Lagos, the Federal Capital Territory (FCT) and Ogun during his national broadcast on Sunday. The restriction aimed at curbing the spread of the coronavirus in these states, which account for 83% of all 111 confirmed cases in the country (according to the NCDC), is expected to last 14 days and will take effect from today at 11 pm. Essential services like hospitals (including clinics and pharmacies), a...
Strong volumes support Revenue FLOURMILL in its unaudited 9M’19/20 results, posted a positive third quarter performance, with revenue growing 12% q/q to ₦152.72 billion. While the Food segment (+4% q/q) remains the biggest contributor to top line, we note that revenue from the agro-allied and the sugar businesses grew at a faster pace of 34% and 9% q/q respectively. The revenue growth in these segments did not come as a surprise, as we had anticipated better volume-supported performances from...
Nigeria under pressure to join OPEC supply cuts Ahead of the OPEC general meeting in Vienna today, where a possible cut in crude production of up to 1 million bpd will be discussed, President Trump has once again called on OPEC to maintain oil production at current levels, tweeting yesterday that “The world does not want to see, or need, higher oil prices!”. That said, in spite of mounting pressure from the U.S., consensus expect the ...
Nigeria plans London Eurobond roadshow Nigerian officials will embark on a three-day road show in London next week ahead of the planned $2.8 billion Eurobond sale this month. The Senate earlier approved the issuance of the Eurobond from the International Capital Market to finance the 2018 budget and this would be the second Eurobond sale this year after a total sale of $2.5 billion in February 2018 to refinance local currency debt. The co...
The Week Ahead Brent crude prices dipped early on Monday, falling to $77.39/bbl (Friday close: $78.26/bbl) as fears of a shortage abated after data at the end of the previous week showed an increase in oil supplies. Furthermore, additional U.S. tariffs of $200 billion on Chinese imports expected this week have cast a cloud over oil demand in the latter part of the year. However, these factors are being upset by persiste...
Gains from deleveraging to support FY’19 PAT FLOURMILL recently released its FY’18 financial results showing a 3% y/y rise in revenue to ₦542.7 billion and a notable 54% y/y jump in PAT to ₦13.6 billion. The impressive y/y performance was however weaker than we had expected. Particularly, profit before tax came in 39% lower than our ₦18.3 billion estimate following a markedly weak performance in Q4 (Jan-Mar ...
FLOUR MILLS OF NIGERIA PLC Abnormally weak Q4 slows strong FY earnings FLOURMILL released its FY’16/17 financial results with revenue coming in 53% higher y/y and 2% above Vetiva estimate at ₦524 billion - finishing the year with yet another revenue outperformance in its final quarter. Earnings were further supported by improvement in costs which saw operating profit rise from ₦9 billion to ₦41 billion. Despite reporting impressive y/y growth in operating profit, PAT was down 39 y/y to â...
In line with expectations, FLOURMILL sustained the strong y/y topline growth with 9M’16/17 revenue up 48% to ₦389 billion – already 14% better than its FY’15/16 revenue. The resilient growth from the food manufacturer has been powered by a strong mix of price hikes across product categories and volume ramp-up. Given its c.78% exposure to imported raw materials (such as wheat and raw sugar), price increases were implemented to counter rising costs following over 50% currency devaluation i...
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...
Buoyed by the strongest quarterly revenue performance on record, FLOURMILL reported a 44% y/y topline growth in its H1’17 period ended 30 September 2016. Amidst a challenging operating landscape, the company’s outperformance can be tied to gradual increases in selling prices (ranging between 10% and 25% as at Q1) as well as strong volume growth. We believe additional product offerings (such as edible oils and cereal snacks) effected in FY’16 and a ramp up in sugar production have played a ...
Following two consecutive quarters of slow topline growth, FLOURMILL began its FY’17 financial year on a strong note with Q1’17 results showing a 45% y/y and 51% q/q increase in revenue to N119 billion (23% above Vetiva’s estimate). According to management, the jump in revenue was driven by both volume growth (particularly in the Food segment) and price increases (ranging from 10% to 25% depending on the product category). Whilst all the business segments of the miller grew at double digit...
FLOUR MILLS OF NIGERIA PLC UNICEM sale masks earnings challenge Despite a second consecutive quarterly decline in topline growth (Q4: -8%, Q3: -10%), FLOURMILL reported an 11% y/y revenue growth in its FY’16 period ended 31 March, above Vetiva’s 9% growth estimate. This growth was supported by the strong performance recorded in the first half of the year w...
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