Economy
Flour Mills Will Achieve 137.3% EPS Growth—Analysts
By Modupe Gbadeyanka
One of the top players in the flour milling sector in the country, Flour Mills of Nigeria Plc, has been tipped to record a year-on-year expansion of 137.3 percent in its earnings per share in its present financial year ending March 31, 2020.
In its first quarter ended June 30, 2019, the firm recorded an impressive 16.5 percent year-on-year EPS growth from a finance cost-induced negative EPS printed in the fourth quarter of ended March 31, 2019.
According to analysts at Cordros Research, the upsurge in earnings largely stemmed from the blend of lower effective taxes (-700 bps) and material decline in finance charges (26.6% y/y) as the company used the proceeds from the rights issue earlier in the year to pay off its expensive borrowing.
For evidence, the company’s total debt dipped by 22.0% y/y to N133.9 billion, split into overdraft (12% of total), short term (32% of total), and long term (48% of total), respectively.
Earlier this year, Flour Mills raised N39.0 billion via a rights issue and utilized the proceeds to pay off its expensive short-term debt. Consequently, the company recorded a 22 percent decline in finance charges.
Looking ahead, Cordros Research says it sees scope for further debt reduction given the group’s less aggressive CapEx programme and better revenue outlook. It said management has guided to CapEx intensity remaining low in the medium-term, pointing out that there is the belief that the group’s FCF generation is looking set to be boosted and net debt reduced.
“From our previous estimate of N2.27 per share, we now forecast Flour Mills will deliver a +137.3% y/y expansion in EPS (N2.31 percent share) in 2020E, driven by the combination of (1) low base from the prior year, (2) sizeable decline in finance charges, and (3) managements cost-cutting tactics,” Cordros Research analysts said.
“While we are concerned about the weak food margin, on account of consumer downtrading, we like that the sugar segment is now at break-even point, and despite the strength of competition, we believe margin growth prospect is high.
“On our estimates, the stock is trading at 2020E P/E and EV/EBITDA of 6.41x and 3.38x, relative to 17.5x and 13.5x for Bloomberg Middle East & Africa peers.
“Our revised TP of NGN26.59/share (previously: NGN25.23) implies a total return of 76.0% as at the closing price yesterday. We retain our BUY rating on the stock,” the Lagos-based research company said in its report.
Business Post reports that shares of Flour Mills were traded on the floor of the Nigerian Stock Exchange (NSE) on Wednesday at N15.30k each, going down by 0.30 kobo or 1.92 percent at the close of business.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
