What Will the Earnings Bring?
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Good morning and welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two:?
Green White Green Last Week?
Access Holding (the parent company of Access Bank) has invested $300 million as capital in the bank.?
From bank to Holdco?
Sterling Financial Holding Company Plc’s (Sterling HoldCo) entire issued share capital of 28,790,418,124 ordinary shares of 50 kobo each were also listed on the Daily Official List of NGX at N1.60 per share.?
Shareholders of Sterling Bank exchanged their shares for that of the holdco. The holdco will enable the bank to go into other aspects of finance than banking.?
A deadline
For MTN Nigeria shareholders who would prefer to receive shares in lieu of dividends, the deadline for the submission of the form is April 11, 2023.?
You can get the form from the company’s registrars (Coronation registrars) or use this link:
The reference price (dividend share exchange rate) is N232.68 per share.?
Update from Seplat?
A Federal High Court sitting in Lagos has vacated the court order against Seplat, its CEO and its Board Chairman, including the orders that restrained the Chief Executive Officer Roger Brown from participating in the running of the company. The case has been adjourned to May 16, 2023, to continue the hearing.?
Last month, a court order by Hon. Justice C. J. Aneke of the Federal High Court, Lagos, Nigeria, restrained the Chief Executive Officer, Mr. Roger Brown from participating in the running of the company [for a period of 7 days].?
The petitioners also accused the Chairman, CEO and all of the Independent Non-Executive Directors (INEDs) of Seplat Energy on allegations of unfair, prejudicial, and offensive acts.
The CEO was accused of organising a site visit for a number of its major shareholders to the company’s operations, cancelling some catering and landscaping contracts, and introducing a new job performance rating.
The injunction was filed by Messrs Moses Igbrude, Sarat Kudaisi, Kenneth Nnabike, Ajani Abidoye and Robert Ibekwe who are shareholders in the company.
Key points from UAC of Nigeria conference call
UAC of Nigeria, founded in the 1920s, is one of Nigeria’s oldest conglomerates.?
FY 2022 was a poor year due to losses in the animal feeds segment, and escalating costs particularly energy, distribution, and finance costs. The group recorded a N4 billion loss after tax as against a N2.5 billion profit after tax made in the previous year.
Here are the key points from the company’s analyst call.
The company invested N2.8 billion in expanding Swan water capacity by 3X. N1.2 billion was spent on expansion of Mr Biggs and Debonair stores.?
As part of moves to contain rising energy costs, the company’s units are exploring gas, solar and biomass energy.?
领英推荐
Chemical and Allied Products (CAP) is a key firm in the group as it has tripled its revenue in the last few years. Management is aggressively pushing management to grow the business and exploring acquisition opportunities.
A new executive will be joining in June to grow the industrial segment (marine and protective segment in particular). The benefit of this is that the segment earns dollar revenue.?
A merger between grand cereals and livestock feeds makes sense but not the company's priority until they address performance issues particularly in grand cereals.?
Green White Green This Week?
Dangote Cement, Dangote Sugar and Custodian Investment will be holding their annual general meetings during the week. For shareholders, it is an opportunity to interrogate management on last year’s performance and plans for the current year.
The primary reason shareholders look forward to AGMs is the approval of dividends. Sometimes dividends are paid on the same day or the day after.?
We could see a few companies drop their earnings as well.?
Star-Spangled Banner Last Week?
J&J atones for its sins
In what would be one of the largest product liability settlements ever, Johnson & Johnson has proposed paying at least $8.9 billion to thousands of people who sued the company, claiming that their use of J&J's talc-containing powders caused cancer.
The business also disclosed on Tuesday that its LTL Management LLC division, which J&J had set up to handle the litigation, had reapplied for bankruptcy protection in order to request approval of the plan to spread out the payments over a 25-year period.
The chips fall at Samsung
Samsung announced on Friday that it projected its operational profit for the January–March 2023 to have decreased by 96% from the preceding year to ?600 billion (? is the symbol for the Korean currency)—an equivalent of about $455 million). This would be the lowest operating profit for a quarter since 2009.
The fall is due to declining semiconductor demand. During the Covid pandemic, customers purchased a lot of stock. A slowing economy means they've opted to use what they already own, rather than buy more.
Star-Spangled Banner This Week
The first earnings reports from major banks and financial institutions, including JPMorgan Chase, Wells Fargo, Citigroup, BlackRock, and PNC Financial Services, would be released this week.
Progressive Insurance, Delta Air Lines, and UnitedHealth Group are just a few of the other firms that will be releasing their quarterly reports.
On Wednesday and Thursday, March inflation figures for the consumer and producer respectively will be released. The level and shape of increase will influence the rate at which the Fed (US Central bank) will raise interest rates.?
The Spring 2023 annual meetings of the World Bank and International Monetary Fund (IMF) will begin on Monday in Washington, D.C.
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