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Nestle Nigeria Records 74% Loss In Nine Months

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By Modupe Gbadeyanka

Nestle Nigeria Plc released its 2016 result for the nine months ended September 30, 2016, on Friday to the Nigerian Stock Exchange (NSE).

In the released financial result, the company’s profit before tax dropped by 74 percent for the period under review despite its gross profit improving by 8 percent under nine months.

As at September 30, 2015, the gross profit of Nestle Nigeria Plc stood at N48.01 billion compared to N51.93 billion it grew to this year, while it earned N129.5 billion as revenue under the same period compared to N107.9 billion it recorded last year.

However, the company’s pre-tax profit as at September 30, 2016, stood at N5.5 billion against N20.8 billion it recorded in the corresponding year.

Business Post correspondent learnt that this was majorly caused by the harsh environment it operated.

From the analysis submitted to the NSE, its marketing and distribution expenses gulped N19.9 billion compared to N17.9 billion it was in the same period last year.

Also, N6.68 billion was used as Administrative expenses for the period under review against N5.35 billion spent in 2015.

This resulted into the total amount on operating activities of Nestle Nigeria Plc, in the period under review, totalling N25.4 billion against N24.7 billion achieved last year.

While the net finance cost as at September 30, 2016 was N19.9 billion, it was N3.9 billion in the same period in 2015.

According to the financial result, Business Post gathered that N5.01 billion was paid as income tax compared to N3.6 billion paid last year, making the company post N484 million as profit after tax compared to N17.24 billion it recorded last year.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Banking

Rand Merchant Bank Adopts Kachasi to Strengthen Trade Finance Operations

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By Modupe Gbadeyanka

As part of its commitment to deliver quality service to customers, Rand Merchant Bank (RMB) has finally embraced the trade finance software of Union Systems Limited (USL), Kachasi.

The lender said its migration from Finastra’s Trade Innovation (TI) to USL’s Kachasi is a testament to the strength, reliability and competitiveness of this homegrown solution.

Kachasi is Nigeria’s leading indigenous trade finance software built to empower banks with seamless automation, regulatory compliance, and enhanced operational efficiency.

The platform has consistently proven to be a game-changer in the trade finance sector, offering key features such as full compliance with statutory and local regulatory requirements, end-to-end automation of trade finance processes, compliance with international trade regulations, advanced risk management and reporting tools, as well as seamless integration with core banking, local portals and third-party systems.

RMB said its decision to integrate Kachasi into its operations reinforces the platform’s reputation as a trusted trade finance solution.

As international trade becomes more complex, financial institutions require cutting-edge technology to navigate regulatory requirements, mitigate risks, and ensure operational excellence.

“This win affirms our commitment to revolutionizing trade finance automation across Africa. As more financial institutions embrace Kachasi, we remain dedicated to delivering cutting-edge solutions that drive efficiency and elevate the banking sector,” the financial institution stated.

Also, the chief executive of USL, Mr Chuks Onyebuchi, said, “This partnership with Rand Merchant Bank marks a defining moment, not just for Union Systems Limited but for African-built fintech solutions on the global stage.

“The successful transition from Finastra’s Trade Innovation (TI) to Kachasi proves that our homegrown technology is not only competitive but also better suited to the evolving needs of banks and trade finance institutions.

“Kachasi’s seamless automation, deep integration capabilities, and understanding of the local and international trade landscape make it the ideal choice for financial institutions looking to drive efficiency and innovation. This achievement is a testament to our commitment to building world-class technology, and we are excited to support RMB in revolutionizing their trade finance operations.”

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TAJBank to Raise N20bn Mudarabah Sukuk to Fuel Business Expansion

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By Adedapo Adesanya

Nigerian non-interest bank, TAJBank, is finalising arrangements to raise the sum of N20 billion Mudarabah Sukuk to beef up its additional tier 1 capital with the aim of fueling its business expansion drive in the country.

The issuance is part of its larger N100 billion Sukuk programme.

The new investment initiative, which is coming two years after the issuance of the first-ever N10 billion Sukuk on the Nigerian Exchange (NGX) Limited in 2023, presents a unique opportunity for individuals and institutions to invest in an ethical instrument with a competitive 20.5 per cent per annum return.

The Mudarabah Sukuk, which is open to all investors, is designed to offer a stable and ethical investment option, allowing investors to participate in the bank’s profit-sharing ventures.

According to a statement, the the move underscores its commitment to expand access to innovative financial solutions and promoting financial inclusion in the country.

The Mudarabah Sukuk issuance terms and conditions are undergoing final regulatory assessment and approval processes.

The chief executive of TAJBank, Mr Hamid Joda, said, “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.”

“This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model”, the banker added.

Mr Joda had, at the beating of the gong during the listing of the TAJBank’s maiden N10 billion Sukuk bond on the NGX in February 2023, assured investors that the bank’s board and management would ensure good returns on their investments.

Business Post reports that the bond was over-subscribed by over 115 per cent.

“As TAJBank gets the NGX’s endorsement today on its fund raising for operations, I want to assure all investors in the maiden Sukuk bond offer by our bank that the board and management will surpass their expectations in terms of return on their investment and other benefits,” he said.

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PalmPay, Carbon Issue Verve Cards to Customers for Seamless Transactions

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Verve Card for PalmPay Carbon

By Aduragbemi Omiyale

Top financial technology (fintech) companies in Nigeria, PalmPay and Carbon, have commenced the issuance of Verve cards to their customers.

This allows millions of Carbon and PalmPay customers access to Verve’s extensive payment network, bringing digital payment solutions to previously underserved populations.

They began issuance of the cards following the approval of the Central Bank of Nigeria (CBN), underscoring the apex bank’s commitment to empowering fintech companies and advancing financial inclusion across the country.

The issuance of Verve cards by these firms will bring digital payment solutions to previously underserved populations.

Industry observers note that the decision by both fintech companies to align with Verve stems from the payment card’s network-wide reach and a robust infrastructure across Nigeria and beyond.

Last year, Verve marked its 15th anniversary characterized by its outstanding quality, innovativeness and vast array of options; it also announced that it has issued over 70 million cards, establishing itself as a dominant player in Nigeria’s payment ecosystem.

The domestic card scheme’s impressive penetration makes it a natural choice for fintech platforms seeking to rapidly expand their payment offerings while supporting the CBN’s financial inclusion goals.

Other fintech companies that have previously followed this line in issuing Verve cards include Opay and Moniepoint.

As a homegrown card scheme, Verve has continued to innovate its service offerings to compete effectively with international payment networks.

The company has integrated advanced features, including contactless payment technology and enhanced security measures, such as biometric authentication through other sophisticated recognition systems such as fingerprints.

Through collaborations like this, Nigeria’s journey toward a more inclusive financial ecosystem will be shortened, providing more Nigerians with access to modern banking and payment services through the combined technological capabilities of these financial service providers.

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