1st quarter: Leading firms in stock exchange show signs of recovery, post N1.74trn revenue
Corporate results for first quarter 2017 (Q1’17) from sector leaders in the Nigerian Stock Exchange, (NSE), have indicated a real rebound may be underway in 2017.
The reports turned in to the NSE for Q1’17, indicated general upbeat in turnover and profit before tax, (PBT), with companies drawn from various sectors of the NSE posting combined revenue of N1.74 trillion, representing 45 per cent increase against the N1.2 trillion reported in the corresponding period of 2016 (Q1’16).
The companies, numbering 62, accounting for the largest capitalization in the stock exchange, also recorded combined PBT of N270.92 billion, representing 36.9 per cent increase over N197.9 billion in Q1’16.
The results, both the turnover and pre-tax profit of the companies, outperformed the latest GDP and inflation figures, thereby affirming the position by the World Bank and the Minister of Finance, Mrs. Kemi Adeosun, that Nigeria was already coming out of recession.
Also, the CBN governor, Mr. Godwin Emefiele, had last month said that the country would come out of recession in the second quarter of the year.
The inflation figure has improved from a high of 18.6 per cent by end 2016 to 17.26 per cent at end of Q1’17 (March), while the GDP though a contraction at -1.30 per cent in year-on-year, in Q4’16, is an improvement over the previous quarter when the number contracted -2.24 per cent.
Also the CBN’s latest Manufacturing PMI index at 51.1 index points for the month of April, 2017 compared to 47.1 points recorded in March, showed recovery in the private sector.
The PMI index showed that of the 34 sub-sectors surveyed in the manufacturing and non-manufacturing sectors, 20 sub-sectors recorded growth in activities, while 14 sub-sectors recorded decline in activities.
Breakdown of the Q1’17 corporate results showed that the oil and gas sector led turnover in percentage terms, rising by 86.3 per cent to N297.4 billion in Q1’17 as against N159.7 billion in Q1’16, far outperforming the nation’s inflation rate and gross domestic product (GDP).
The consumer goods sector followed with 81.8 per cent increase to N225.63 billion against N124.14 billion recorded in Q1’16, while the agriculture sector ranked third, rising by 70.2 per cent to N9.7 billion in Q1, 2017 from N5.7 billion turnover posted in Q1’16.
Banking sector dominates revenue; profit size further breakdown showed that the