Economy
Owners of Chicken Republic Declare N3.3bn Net Profit
By Adedapo Adesanya
Food Concepts Plc, owners of the popular Chicken Republic, has declared a 135.7 per cent growth in its profit after tax (PAT) for the financial year ended December 31, 2019.
The company revealed this in its financial statements and a look at the books showed that the net profit increased to N3.3 billion from N1.4 billion in the 2018 fiscal year.
The firm recorded a 73.3 per cent rise in profit before tax to N2.6 billion from N1.5 billion in 2018 and in the period under review, it received a tax credit of N723 million, which boosted the net profit for the year.
Food Concepts trades its shares on the floor of the NASD OTC Securities Exchange and in the year under review, the revenue generated, which was made from contracts with customers, rose 51.6 per cent to N13.8 billion from N9.1 billion in the preceding year.
A breakdown showed that operations within Nigeria accounted for the chunk of the revenue (N13.6 billion versus N8.9 billion in 2018). Meanwhile, operations outside the shores of the country recorded a drop in revenue by 6.7 per cent as N208 million was made in the year as against N223 million.
Also recording a drop during the period was the operating income, which went down by 2.9 per cent to N135 million from N139 million recorded in 2018.
There was a rise in the number of raw materials and consumables used during the period as N6.4 billion was expended against N4.1 billion on record the year before.
Equally, employee benefits expense rose by 40 per cent during the year with N2.1 billion spent compared to N1.5 billion in the previous full year.
Operating profit rose during the period by 109.1 per cent to N2.3 billion from N1.1 billion during the preceding year.
Speaking on the result, the Chairman, Mr Odunayo Olagundoye, noted, “We have, once again, grown our revenues and our bottom line and despite various Macro and Micro economic challenges, we are pleased to share with you your company’s key achievements for the financial year ended December 31, 2019.
“We have achieved many milestones over the past few years; we continued to open our flagship brand Chicken Republic stores, whilst adding a new and exciting brand Pie Express to our portfolio of brands.
“We concluded our rights issue in 2019 and secured the requisite funds to continue investing in new stores, IT infrastructure and Central Kitchens; we also built a strongly integrated manufacturing and supply chain division, that will enable our future growth strategy.”
“Our company has overcome many challenges over the years and is now well-positioned to exceed the many milestones achieved in 2019. We have generated strong cash flows and as a result, have achieved robust profitability.
“We have a solid new store pipeline in place for 2020 and will fund our growth and ambitious plans with a combination of cash generated from operations and cash raised from the rights issue.
“Our staff are motivated, happy and responding well to the direction set by the board, executive and senior management teams,” the Managing Director, Mr David Butler, noted.
“Our growth continues to be driven both by same-store sales growth and the expansion of our Chicken Republic and Pie Express brands; we have seen a 56 per cent year-on-year increase in customer traffic to our stores – representing a significant gain in market share. We have opened 25 new shops taking our total to 94 company-owned and franchised locations,” he added.
He noted that due to the COVID-19 pandemic, Food Concepts Plc was declared an Essential Service and continued to trade noting that despite the related challenges, the company has continued to see its sales, customer count and profitability continuously increasing.
He assured that “It is still early days with many predicting a rocky, protracted rollercoaster-type recovery to the COVID-19 pandemic… but I can assure you that our business is improving daily and reacting well under the current circumstances.”
By Modupe Gbadeyanka
Customers of AXA Mansard in the Micro Small and Medium Scale Enterprise (MSME) sector of the economy will enjoy free exhibition stands at the Made by Nigerians Fair.
The fair is scheduled to take place on Saturday, December 7 and Sunday, December 8, 2024, at the Landmark Event Centre, Lagos.
To support small business owners, AXA Mansard is paying for stands for selected entrepreneurs to showcase their products at the fair, which attracts thousands of people.
According to the Head of Marketing at AXA Mansard Insurance Plc, Mr Olusesan Ogunyooye, this is another gesture by the company to show that MSMEs can benefit from having insurance.
He described MSMEs as the backbone of any economy, noting that they drive innovation, create jobs, and contribute significantly to national development.
“Our support for these businesses at the MBN Fair reflects the commitment to their growth and sustainability. We are passionate about helping them reach their full potential by connecting them with resources and opportunities that foster success.
“By the very nature of insurance, its benefits are in the future and they are uncertain. That has been a main source of discouragement, particularly to MSMEs. Businesses are geared to making money.
“So, when thinking about insurance, an average MSME would rather invest the money in the growth of his business first.
“The risks that businesses face are also real. There are various types of risks businesses have to contend with today; from burglary to fire, the health of employees, and so on.
“When these risks manifest, they can significantly impact a business negatively. We understand that to get MSMEs to protect themselves and the millions of jobs they create, we must help them strike a balance between growing their businesses and protecting them.
“So, we have come up with different Initiatives to help them grow their businesses. The opportunity to exhibit their products and services to thousands of visitors to the MBN Fair is another in the series of our initiatives.
“We are convinced that for insurance to grow, we need to help people and businesses see it as a strategic lever to grow their businesses, not a cost that takes away from them. If we get this right, it can’t have a massive impact on our economy because, when MSMEs thrive, the economy will prosper.
“We have experimented with this model, and we are particularly excited about the responses from our customers. It is a call for us to do more, and we are committed to Nigerian MSMEs,” Mr Ogunyooye stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.05 per cent gain on Friday, December 6 after the price of Afriland Properties Plc went up by 60 Kobo to settle for the day at N16.60 per share versus Thursday’s closing price of N16.00 per share.
Consequently, the market capitalisation of the bourse increased during the session by N520 billion to settle at N1.056 trillion, the same value it ended a day earlier, as the NASD Unlisted Security Index (NSI) went up by 1.5 points to wrap the session at 3,014.91 points compared with 3,013.41 points recorded in the previous session.
Business Post reports that yesterday, the price of Acorn Petroleum Plc depreciated at the close of business by 15 Kobo to trade at N1.54 per unit compared with the preceding day’s N1.69 per unit.
The volume of securities traded in the session by investors soared by 168.3 per cent on Friday to 199,577 units from 74,381 units, but the value of securities went down by 45.8 per cent to N1.4 million from the N2.7 million recorded a day earlier, and the number of deals grew by 20 per cent to six deals from the five deals executed in the preceding session.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rebounded by 0.10 per cent on Friday as almost all the key sectors closed in green when trading activities ended for the week.
The banking index appreciated by 0.73 per cent, the insurance sector gained 0.55 per cent, the energy counter improved by 0.17 per cent, and the industrial goods space jumped by 0.04 per cent, while the consumer goods sector depreciated by 0.16 per cent.
At the close of business, the All-Share Index (ASI) moved up by 96.64 points to 98,210.75 points from 98,114.11 points and the market capitalisation gained N58 billion to quote at N59.534 trillion compared with Thursday’s closing value of N59.476 trillion.
The bourse finished with 27 price advancers and 21 price decliners, representing a positive market breadth index and bullish sentiment.
Golden Guinea Breweries jumped by 9.98 per cent to N5.40, Japaul improved by 9.30 per cent to N2.35, Sunu Assurances expanded by 9.07 per cent to N5.05, Sovereign Trust Insurance rose by 7.69 per cent to 84 Kobo, and Secure Electronic Technology grew by 7.69 per cent to 70 Kobo.
On the flip side, Eterna lost 4.62 per cent to N22.70, Sterling Holdings depreciated by 4.12 per cent to N4.65, Prestige Assurance fell by 3.85 per cent to 75 Kobo, Consolidated Hallmark shrank by 3.85 per cent to N2.50, and Champion Breweries slumped by 3.50 per cent to N3.86.
Yesterday, investors bought and sold 1.0 billion equities worth N17.5 billion in 7,220 deals, in contrast to the 723.0 million equities valued at N12.8 billion transacted in 8,495 deals a day earlier, indicating a decline in the number of deals by 15.01 per cent and a surge in the trading volume and value by 43.98 per cent and 36.72 per cent, respectively.
On top of the activity chart on Friday was Wema Bank with the sale of 472.5 million stocks valued at N4.1 billion, Fidelity Bank traded 251.5 million shares worth N4.0 billion, FCMB transacted 45.0 million equities for N404.9 million, UBA sold 42.3 million shares valued at N1.4 billion, and Japaul traded 20.7 million stocks worth N46.3 million.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN