With the COVID-19 pandemic and currency-induced inflationary pressures reducing profit margins the previous year, Nigeria’s largest publicly traded corporations faced a slew of issues in 2021.
In 2021, the country’s largest listed firms on the Nigerian Exchange (NGX) utilized a variety of factors, including strong unit volume growth, pricing, and favorable base effects, to post considerable increases in both top-line and bottom-line figures, according to a BusinessDay research.
The performance of Nigeria’s largest publicly traded corporations reflects the country’s economic recovery. The economy increased by 4.03 percent in the third quarter of 2021, marking the fourth consecutive quarter of expansion since the recession of 2020.
Dangote Cement, MTN, Zenith Bank, GTCO, BUA Cement, Nestle, First Bank of Nigeria Holding, WAPCO, Stanbic Bank, and Seplat were the most profitable firms in 2021, according to BusinessDay’s review of the financial performance of the 30 largest listed companies on the NGX. Their stature was advantageous to them.
1. Dangote Cement
Dangote Cement is Africa’s largest cement firm, with a market capitalization of N4.35 trillion and a profit after tax of N278 billion in the first nine months of 2021. This is a 33% increase in profit from N208.6 billion in the first nine months of 2020.
In the first nine months of this year, the company’s earnings per share were N16.23, up from N12.25 in the same period last year. Dangote Cement started the year with a share price of N244.90, and it has subsequently gained 4.12% on that price.
In the first nine months of 2021, Dangote Cement continues to outperform industry peers, becoming the most efficient cement manufacturer in the world.
2. MTN
MTN Nigeria is Nigeria’s second-most profitable firm, as well as the Exchange’s second-largest company. In the first nine months of 2021, the largest telecom network had a market value of N3.81 trillion and a profit after tax of N220.3 billion.
When compared to the same period last year, the company’s profit after tax increased by 52.74 percent to N144.2 billion.
For the nine months ending in September 2021, earnings per share were N10.82, compared to N7.09 for the same period in 2020. MTN started the year with a share price of N169.90 and has since increased by 10.1 percent.
3. Zenith Bank
Zenith Bank is the corporation with the third highest profit margin. Among the other banks, the bank has the highest market capitalization and profitability. On November 6, it surpassed Guaranty Trust Holding Company (GTC0) in Market Capitalization for the first time, with a market capitalization of N779.6 billion.
In the first nine months of 2021, Zenith Bank had a profit after tax of N160.59 billion. When compared to N159.32 billion in the same period the previous year, this is an increase of 0.8 percent.
For the year 2021, earnings per share increased to N5.11 from N5.07 the previous year.
4. GTCO
In the first nine months of 2021, GTCO ranked fourth in terms of profitability, with a profit after tax of N129.4 billion. In comparison, N142.28 billion was spent in the first nine months of 2020, a decrease of 9.96 percent. It has a market capitalisation of N753 billion.
Guaranty Trust Holding started the year with a share price of N32.35, but it has already dropped 20.9 percent. In the first nine months of 2021, the company’s basic earnings per share fell to N4.54 from N5.02 in the same period of 2020.
5. BUA Cement
BUA Cement’s earnings after tax increased by 23.22 percent to N65.91 billion in the fiscal year ended September 30, 2021, compared to N 53.49 billion in the same period in 2020.
BUA Cement started the year with a share price of N77.35, but it has already dropped 3.68 percent. However, its earnings per share climbed to N195 in the nine months ending September 2021, up from N158 in the previous year’s same period.
6. Nestle
Nestle was rated fifth in the nine-month period ending September 2021, with a profit after tax of N33.5 billion. This is a 5% increase over the N31.9 billion realized in the same period of 2020. The value of Nigeria’s largest consumer products company is N1.11 trillion.
In the period under review, the company’s earnings per share climbed to N14.95 from N12.76 in the corresponding period of 2020. Nestle started the year with a share price of N1,505, but it has already dropped 7.31 percent.
7. FBNH
First Bank of Nigeria Holdings, which has a market capitalization of N434 billion, made a profit of N40.79 billion in the first nine months of 2021, down 40.15 percent from N68.15 billion the previous year.
FBN started the year with a share price of N7.15 and has since increased by 69.2 percent on that price. In the first nine months of 2021, the lender’s earnings per share fell to N1.12 from N1.87 in the same period in 2020.
8. WAPCO
WAPCO made a profit of N40.39 billion in the nine months leading up to September 2021, up 43 percent from N28.2 billion the previous year. The market capitalization of the cement manufacturer was N393 billion.
WAPCO’s earnings per share climbed to N251 in the first nine months of 2021, up from N175 the year before. Lafarge Wapco started the year with a share price of N21.05 and has now increased by 15.9% on that price.
9. IBTC Stanbic
In the first nine months of 2021, Stanbic IBTC made a profit of N39.95 billion, down 39.6% from N66.16 billion in the same period last year. The lender is valued at N466 billion on the stock exchange.
In the first nine months of this year, its earnings per share fell to N293 from N580 in the same period last year. Stanbic started the year with a share price of N44.05, but it has since dropped 18.3 percent from that level.
10. Seplat Energy
Despite being the least lucrative of the top ten profitable corporations, Seplat Energy had a profit of N13.90 billion in the first nine months of 2021, compared to a loss of N33.68 billion the previous year.
Seplat Energy started the year with a share price of N402.30 and has since increased by 61.6 percent. It had a market capitalization of N382.55 billion at the time.
Source: Nyscinfo