At least 33 listed companies on the floor of the Nigerian Stock Exchange, who have so far published their half year result, have seen their cumulative profit after tax drop by N95.8 billion, Daily Trust reports.
The firms’ profits dropped from N903.6bn recorded in 2019 to N807.8bn in 2020, which translates to 10.6 per cent.
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The drop in total profit of the 33 firms is in spite of the increase in cumulative revenue amounting to N45bn, from N2.88 trillion in 2019 to N2.93tn in 2020, translating to 15.6 per cent growth.
The Companies covered in the analysis include: MTN Nigeria, Dangote Cement, Nestle, FBNH, Caverton Group, Okomu oil, Jaiz Bank, May & Baker, NAHCO, BUA cement, PRESCO, NASCON, UACN, Nigeria brewery, Dangote Sugar, Japaul, Eterna Oil, Champions brewery, BOC Gases, Sterling Bank, ABC Transport, Access, GTB, UBA, Zenith, Stanbic, WEMA, Union bank, Unity Bank and FCMB.
However, only 17 of the 33 companies made more profit in half year 2020 compared with the same period in 2019.
A further breakdown of the results shows that 19 of the firms which excludes the banks, grossed N1.74 trillion in half year revenue compared to N1.77tn in 2019. A drop of N28bn, translating to 15.8%.
The Profit after tax of the 19 firms also saw a massive drop of N106.9bn from N429.2bn in 2019 down to N312.3bn in 2020.
The amount translates to 26% drop from the previous year.
The companies that made more despite the nearly three months lockdown include: Okomu Oil (N4bn vs N2.5), Dangote Cement (N126bn vs N119bn), May & Baker (N339m vs N291m), BUA cement (N35bn vs N30bn), PRESCO Oil (N4.3bn vs N2.6bn), NASCON (N860m vs 754m), Dangote Sugar (11.6 vs 10.9bn), BOC Gases (N127m vs a loss of 614m)
Daily Trust reports that the 14 Deposit Money Banks listed on the floor of the NSE cumulatively recorded N1.187tn revenue for the first six months of operations in 2020 compared to the N1.114tn recorded in the corresponding period of 2019.
The amount shows that despite the effect of the Coronavirus which ensured that banking halls were not available for physical transaction for nearly three months, the banks grew their revenue by an additional N72.5bn which translates to a growth of 6.5%.
The 14 banks grew their cumulative profit after tax from N484.4 bn in half year 2019 to N495.5bn in half year 2020.
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