Thread by @quansimodo

Good Evening and Welcome to this week’s edition of Bulls and Bears powered by @WealthNG .

Bulls and Bears is a weekly newsletter by @Nairametrics Nairametrics which looks at happenings on the @nsecontact

Please retweet from the very first thread, so those on your timeline dont miss out. Thread starts here.

First a look at how the markets did this week.

The downturn on the @NSEcontact showed no signs of abating as the All Share Index ended the week’s trading session down 0.28%, at 27,918.59 basis points

Year to date, the index is down 11.17%.

NPF Microfinance Bank was the best performing stock this week, appreciating by 14.16% to close at N1.29.

Linkage Assurance Plc was the worst performing stock on the NSE this week, declining by 20.31% to close at N0.51.

Moving on board changes,

GSK Consumer Nigeria announced the resignation of Tunde Lemo, a non Executive Director effective 30th of June, 2019.

Ambassador Nonye Udo was elected a Director of Presco Plc effective July 24, 2019, during the company’s 26th Annual General Meeting.

Now to results. Its earnings season, and as such well over 20 results were released.

In order to prevent the thread from turnioniown, ive looked at a few key results.

Ive you have a questions pertaining to any company, not on the thread, feel free to tweet at me.

The struggles at its Nigerian subsidiary, were a recurrent theme at an investor call held this week, by PZ Cussons UK (parent company of PZ Nigeria).

The Nigerian unit is likely to declare an operating loss of £1 million.

Listened in to the call, and barely a minute into it, Nigeria was the topic of convo.

PZ Nigeria needs to tweak a few things. But like Amy Winehouse of blessed memory, its one thing to need rehab.

Its another thing, for you to actually go through the process.

Nestle Nigeria maintained its stellar delivery in its half year 2019 results.

Revenue rose marginally by 5% from N135 billion in 2018 to N141 billion in 2019,

profit before tax increased by 27% from N31.8 billion in 2018 to N40 billion in 2019.

The increase in profit was due to an absence of a N3 billion impairment loss in H1 2019. Beverage revenue thus rose from N7.6 billion in 2018 to N13.8 billion in 2019.

There was however no indication that the firm would pay an interim dividend. Thats a usual Nestle tradition.

Unilever Nigeria’s H1 2019 results came sandwiched between the two other FMCG giants.

While far from PZ Nigeria’s woeful performance, the decline seen in the first quarter of 2019 continued.

Revenue dipped slightly from N23.8 billion in 2018 to N23.4 billion in 2019.

The drop in bottom-line was however a bit more pronounced.

Profit before tax fell from N3.8 billion in 2018 to N2.6 billion in 2019,

down 31.5% year on year.

Profit after tax also dropped from N2.8 billion in 2018 to N1.9 billion in 2019, down 32%.

GSK Consumer Nigeria’s H1 2019 results show a decent performance, both year on year, as well as the two consecutive quarters of 2019.

H1 revenue was up by 16.7% from N8.5 billion in 2018 to N9.9 billion in 2019.

Profit before tax however grew by a slimmer margin from N517 million in 2018 to N531 million in 2019.

Profit after tax, also rose by the same margin from N362 million in 2018 to N372 million in 2019

Cement Company of Northern Nigeria released its results for the half year ended June 2019.

There was a sharp increase in both topline and bottom-line.

Revenue jumped by 166% from N12 billion in 2018, to N32 billion in 2019.

Profit before tax jumped by 169% from N3.6 billion in 2018 to N9.7 billion in 2019.

Profit after tax also increased from N2.6 billion in 2018 to N7.2 billion in 2019, up 176%.

Caverton Offshore Support Group’s H1 2019 results show a sharp increase in profit after tax, year on year.

While revenue was up from N14.2 billion in 2018 to N16.9 billion in 2019.

Profit after tax surged from N962 million in 2018 to N1.7 billion in 2019, up 77.9%.

Oando Plc incurred a N17.2 billion loss in H1 2019 largely due to a spike in administrative expenses, which increased by 65.7% from N32.4 billion in 2018 to N53.7 billion in 2019.

An income tax credit of N24.4 billion, pushed the profit for the period to N7.1 billion.

Total Nigeria Plc delivered disappointing H1 2019 results due to a spike in administrative expenses and finance costs.

Revenue dipped from N156 billion in 2018 to N150 billion in 2019, down 4% year on year.

Administrative expenses increased from N9.3 billion in 2018 to N11.3 billion in 2019, up 21.5% year on year.

Finance costs rose by 143% from N1.6 billion in 2018 to N3.9 billion in 2019.

Profit for the period fell sharply from N5.6 billion in 2018 to N129 million in 2019.

With this result, the stock could hit new multi year lows.

Okomu Oil Palm Plc's H2 2019 results were also disappointing.

Turnover fell sharply from N12.9 billion in 2018 to N8.5 billion in 2019, down 51.7%.

Profit before tax also fell from N5.9 billion in 2018 to N2.5 billion in 2019, down 136%.

The two Purple banks (FCMB and Wema Bank) posted decent H1 2019 results.

FCMB Group had an uptick in both topline and bottom-line.

Gross earnings increased from N83.9 billion in 2018 to N89.7 billion in 2019, up 6.9%.

Profit before tax was up by 23.9% to N8.8 billion in 2019. .

Profit after tax also increased by 31.5% to N7.5 billion in 2019.

Wema Bank’s gross earnings grew by 25% from N32 billion in 2018 to N40 billion in 2019.

Profit before tax jumped by 44.4% from N1.8 billion in 2018 to N2.6 billion in 2019.

Profit after tax rose by 46.6% to N2.2 billion in 2019.

MTN Nigeria painted Friday’s trading session yellow, as it released its H1 2019 results and declared an interim dividend.

Revenue grew by 12.2% to N566 billion in 2019.

Profit before tax, did much better, rising by 30.86% to N140 billion.

Profit after tax was up 34.79% to N98.9 billion in 2019.

Fun fact: 63.4% of that revenue came from airtime and subscription.

The firm declared an interim dividend of N2.95 per share.

Prior to this, the company also announced a few changes to its board that will take place effective September 2, 2019.

Chairman Pascal Dozie, Vice Chairman Col. Sani Bello, Victor Odili, Ahmed Dasuki, Babatunde Folawiyo, and Gbenga Oyebode will retire from the board.

The following individuals will take their places, effective same date.

Michael Ajukwu, Muhammad K Ahmad, Andrew Alli, Omobola Johnson, AB Mahmoud, and Ifueko Omoigui-Okauru

Ernest Ndukwe was also appointed Chairman designate.

So whats happening next week ?

A number of firms will be holding their Annual General Meetings (AGMs) within the week.

Prestige Assurance Plc will hold its AGM on the 29th of July, 2019.

C and I Leasing Plc and Chams Plc will hold theirs on the 30th of July, 2019.

Ellah Lakes Plc will hold an EGM on the 31st of July.

Mutual Benefits Assurance Plc will hold its Annual General Meeting on the 1st of August, 2019.

As for stocks to watch next week,

NPF Microfinance Bank and Linkage Assurance Plc are on next week’s watchlist, as they were the best and worst performing stocks this week.

All the companies having Annual General Meetings as well as an EGM, are also on the watchlist.

Zenith Bank and PZ Cussons Nigeria also have spots in next week’s watchlist due to the impending release of their H1 2019, and full year 2018/2019 results respectively.

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The newsletter is a bit more formal. No comparing stocks to Arsenal or danfo buses.

If you have any questions, feel free to tweet at me or @Nairametrics

Good Evening once more and have a productive week ahead.

@Nairametrics PS: Any key results that come after the thread, will be added under.

Seplat should be releasing its h1 2019 results early next week and holding an investor call