MTN leads as Nigerian companies post profits amidst forex crisis

MTN Nigeria, Dangote Cement, Flour Mills, Nigeria Breweries Nestle, Total, Julius Berger and some other companies listed on the Nigerian Stock Exchange brushed aside rising inflation rate and exchange rate crisis to record a surge in revenues and profits.

Financial statements of 32 of the most capitalized companies on the stock exchange, excluding commercial banks, revealed the companies recorded aggregate revenue of N5.9 trillion in the first 9 months of 2021 compared to the N4.69 trillion posted in the same period in 2020.

The impressive performance was recorded across all sectors of the economy including oil and gas, food and beverage, brewery, cement, conglomerates, agriculture, and construction.

These blockbuster results are despite headwinds being experienced in the Nigerian economy, notably rising inflation, spiking unemployment and an exchange rate depreciation forced by the covid-19 pandemic, crash in oil prices, insecurity and citizens battered by weakening purchasing power.

Mobile telecommunication giant, MTN led the table as the highest revenue generating company with revenues of about N1.2 trillion in the first 9 months of the year and profits after tax of N220.3

billion. MTN also paid a tax of N101 billion out of its pre-tax profits.

Nigeria’s Cement giant, Dang Cem came second with a revenue of N1 trillion and a profit after tax of N278.2 billion.

Cement / Construction sector experienced the largest increases in Revenue, Profit-Before-Tax (PBT) and Profit-After-Tax (PAT). Specifically, revenues increased to N1.68 trillion from N1.27 trillion prior year whilst PBT increased to N0.53billion from N0.36billion prior year and PAT increased to N0.39billion from N0.29billion prior year.

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