These were the top 10 most profitable firms on the NSE in 2018

Despite the relatively weak economic growth recorded in 2018, the top 10 most profitable companies on the Nigeria made a total of N1.26 trillion as profit after tax for the 2018 financial year.

This amounts to a 32.8% increase from the N950 billion recorded in the comparative period of 2017.

The Companies 

The companies that made the list include: Dangote Cement, Zenith Bank, Access Bank, Guaranty Trust Bank and UBA.

Others are: Ecobank Trans International (ETI), Stanbic IBTC Holdings, FBN Holdings, Seplat and Nestle.

Dangote Cement leads the pack

Dangote Cement was the most profitable firm on the Nigerian Stock Exchange, with a profit after tax of N390 billion recorded in the 2018 financial year. The firm’s profits were boosted by a tax credit of N89 billion.

Zenith Bank was next with a profit after tax of N193 billion.

Guaranty Trust Bank follows closely with a profit after tax of N184 billion.

Banks dominate the list

Banks were the dominant firms, in terms of absolute numbers, accounting for 7 of the 10 most profitable firms on the NSE. Zenith Bank, Guaranty Trust Bank, Ecobank, Access Bank, UBA, Stanbic IBTC and FBN Holdings all made the list.

The 7 banks accounted for 62.1% or N784.2 billion of profit made by the top 10 listed firms.

Which firm had the biggest growth?

Dangote Cement had the biggest jump in terms of profit, with a 91.1% increase in profit year on year.

Access Bank was next, with a 58.1% increase in profit year on year.

Stanbic IBTC Holdings takes third place with a 56.1% increase in profit year on year.

Odd one out

Seplat Petroleum Development Company was the only firm among the top 10 firms that had a year on year decline. The upstream operator’s profit after tax fell by 81% from N81.1 billion in 2018 to N44.8 billion in 2019. Seplat had a spike in tax payments due to deferred tax payments made.

Only FMCG

Nestle Nigeria Plc was the only Fast Moving Consumer Good (FMCG) company on the list. The company made a profit after tax of N43 billion for the 2018 financial year.