In a period when banks are declaring losses due to huge provisioning for bad loans, some manufacturing firms have raised investors’ hopes for dividends as they declared improved profit in their results.
The eight banks recently rescued by the Central Bank of Nigeria (CBN) have recorded losses of about N1.4 trillion, thereby sealing any hope of shareholders getting dividends. However, the results posted by Nigerian Bottling Company (NBC) Plc, and Flour Mills Nigeria Plc, among others, showed impressive growth that would lead to dividend payment to shareholders.
In its unaudited result for the third quarter ended September 30, 2009, NBC reported a turnover of N64.740 billion, showing an increase of 15 per cent above the N56.47 billion posted in the corresponding period of 2008. But profit after tax soared by 135 per cent from N974 million in 2008 to N2.291 billion in 2009.
In a similar vein, Flour Mills Nigeria Plc posted a turnover of N81.601 billion for the half year ended September 30, 2009, up from N80.866 billion in the corresponding period of 2008. Profit after tax stood at N4.886 billion, showing an increase of 97 per cent above the N2.486 billion in 2008.
Academy Press also recorded improved performance for the half year ended September 30, 2009. The company posted a turnover of N1.086 billion, as against N850 million in the comparable period of 2008. Profit after tax stood at N67.4 million compared with N16.74 million in 2008.
Cutix Plc posted turnover of N763 million for the half year ended October 31, 2009, up from N633.45 million in the comparable period of 2008. Profit rose from N67.42 million to N139.7 million.
National Salt Company of Nigeria Plc reported a turnover of N6.504 billion as against N5.703 billion in the comparable period of 2008. Profit after tax stood at N1.362 billion million compared with N1.079 billion in 2008.
Meanwhile, Honeywell Flour Mills Plc has projected a turnover of N36.229 billion and a profit after tax of N1.772 billion the year ending March 31, 2010. Similarly, Nigerian Bag Manufacturing Company had projected a turnover of N7.744 billion and profit after tax of N512 million in the third quarter ending December 31, 2009.
Chevron Oil Nigeria Plc said it would post a turnover of N32.508 billion and profit after tax of N415.81 million for its first quarter ending March 31, 2010. UAC of Nigeria Plc also said it would record N15.777 billion and profit after tax of N866 million for the first quarter ending March 31, 2010.