NGX Group grows income by 18% to N5.7b in nine months
…As NB declares N3.29b interim dividend, 27% increase in revenue
Nigerian Exchange Group Plc (NGX Group) has recorded a 17.4 per cent growth in revenue for the third quarter ended September 30, 2022 from N4.86 billion posted in 2021 to N5.71billion.
The group’s revenue from its core businesses rose by 13.37 per cent from N4.39 billion to N4.97 billion in the same period in 2022. This includes income generated from treasury investment, transaction fees, listing fees, rental income and other fees.
According to NGX Group, other incomes consisting of market data income, net gain on disposal of property and equipment; and technology income also rose by 55.48 per cent from N417.8 million in 2021 to N733.6 million in the corresponding period of 2022.
Operating profit rose to N798.5 million in September 2022 compared to N710.31 million in 2021 while operating margin declined to 13.99 per cent from 14.62 per cent in the previous year.
In the same vein, Nigerian Breweries (NB) Plc has announced revenue of N393.3 billion for the Third Quarter (nine months) ended 30th September 2022. The figure represents an increase of 27.2 per cent over N309.22 billion recorded in the corresponding period in 2021.
In a statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, the revenue growth was driven by pricing but was however offset by higher input cost arising from increased rate of inflation and higher energy costs.
Analysis of the results revealed that cost of sales rose significantly by 20.2 per cent from N198.75 billion in 2021 to N238.9 billion in 2022 while marketing, distribution, and administration expenses also grew by 40.1 per cent from N86.3 billion in 2021 to N120.95 billion in 2022.
Apart from volume and cost challenges, which affected business performance negatively in Q3, 2022, there was increased pressure on consumers’ disposable income. Nevertheless, the company performed relatively well in the period, led by a strong premium portfolio of Heineken, Tiger and Desperados.
According to the company, despite the volume and cost challenges in the third quarter, the strong performance recorded in the first half of the year ensured that operating profit grew by 44 per cent while Profit after Tax (PAT) rose by 80 per cent.
Based on the improved performance, the directors of the company are recommending an interim dividend of N3.29 billion payable to shareholders at 40 kobo each per ordinary share of 50 kobo.
The company assured stakeholders that it is well positioned to take advantage of any upswing in the market and maintain its leadership position while being cautious about the development of input costs and consumer demand in the remaining period of 2022.