MTN Revenue Rises to N568bn in 3 Months, as Fidelity Bank Doubles Profit, BUA Foods Profits Soars

MTN Revenue Rises to N568bn in 3 Months, as Fidelity Bank Doubles Profit, BUA Foods Profits Soars

  • Three Nigerian firms saw impressive profits in the first quarter of this year
  • Telecoms giant MTN, Fidelity Bank, and BUA Foods experienced massive profits in the first three months of 2023
  • The firms’ records survived despite serious headwinds and uncertainties in the economy

Three Nigerian companies, MTN Nigeria, Fidelity Bank, and BUA Foods, saw record financial performance growth in the first quarter of 2023.

The mobile telecommunication network, MTN Nigeria, saw a 20.6% increase in its total revenue, which increased to N568.136 billion for the first three months of 2023.

MTN, Fidelity, Bank, BUA Foods
MTN Nigeria CEO Karl Toriola, MD of Fidelity Bank, Onyeali-Ikpe, and BUA Foods Chairman, Abdul Samad Rabiu. Credit: Archives Nigeria
Source: UGC

MTN smashes records

The revenue is higher than the N470.984 billion the company recorded in the same period in 2022.

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Daily Trust reports that the telecoms giant stated in its unaudited report to the Nigerian Exchange Limited on Thursday, April 27, 2023, that it recorded a profit after tax of N101.303 billion for the period under review.

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The profit represents an 8.5% increase over the N96.81 billion recorded in 2022.

The company said its expenses grew by 24.2% to N265.49 billion from N213.85 billion in 2022, cost of sales soared by 15.6% from N79.569 in 2022 to almost N92 billion this year.

MTN’s capital expenditure (Capex) decreased by 25.8% to N120.5 billion.

It saw a mobile subscription increase of 9.4% to 76.7 million, an addition of 1.1 million subscribers in the first three months of this year.

MTN’s CEO, Karl Toriola, said the telecom provider experienced headwinds in the first quarter of this year.

Fidelity Bank records double-digit growth

Nigerian bank Fidelity said it doubled its profit before tax in 2022, per its audited financials released on NGX on Thursday, April 27, 2023.

The profit before tax of N53.7 billion recorded by the bank represents 112.9% annual growth.

The bank also recorded a 34.4% growth year-on-year in gross earnings to N337.1 billion.

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The growth was driven by a 45.2% growth in interest and a similar income of N295.6 billion, a combination of improved yield on earning assets and 19.1% Year-on-Year earnings base to N2.64 trillion.

The bank’s Managing Director, Onyeali-Ikpe, said it is delighted with its result.

She said:

“We are happy to report another year of impressive double-digit growth across key income and balance sheet lines. This validates our growth strategy and capacity to deliver superior returns to shareholders”.

Vanguard reports that the bank declared a final dividend of 40 kobo per share, bringing its total dividend to 50 kobo per share for the year.

The bank boasts 7.5 million customers across 250 branches and digital banking touchpoints.

BUA Foods records impressive Q1 results.

Leading Nigerian food manufacturer BUA Foods said it recorded an 85% increase in pre-tax profits, amounting to N49.5 billion.

The company’s earnings per share increased from N1.27 to N2.25 in the period under review.

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The company’s stellar performance comes after it became a publicly quoted company.

BUA Foods recorded a 31% increase in profits after tax in 2022.

The firm’s revenue increased by 60.3% to close at N144.3 billion, which provided it with enough buffer to soak in the rising sales costs.

Its revenue is derived mainly from all its major business segments, with every segment posting revenue growth quarterly.

The company’s sugar business contributed N93 billion in revenue, compared to N54.1 billion recorded in the same period in 2022.

BUA Foods Bakery Flour venture grew from N18,3 billion to N29.6 billion in the period under review.

Its Pasta concern involving pasta processing, manufacturing, and distribution increased its revenue from N15.9 billion to N19.4 billion.

Nairametrics reports that the firm faced substantial cost pressures as its cost of sales increased by 42% to N87.6 billion.

Union Bank declares over N39bn profit in 2022, but there's big trouble ahead

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According to the bank's audited financials submitted to the Nigerian exchange, its profit after tax payment for December 31, 2022, amounted to N39.18 billion, a substantial increase from N16.9 billion in the previous year (2021).

The 106-year-old bank also reported a 19% increase in gross earnings to N208.2 billion, primarily driven by solid growth in net interest income.


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