Top 10 Most Profitable Companies In Nigeria In 2022

Many companies in Nigeria defied economic hurdles in 2022, with MTN Nigeria Communications Plc and Dangote Cement Plc and eight others emerging as the most profitable companies listed on the Nigerian Exchange Limited (NGX) as of September.

2022 was a difficult year for businesses in Africa’s largest economy: a rise in diesel prices combined with tight foreign exchange and high input costs forced some companies to close, while many others struggled to stay afloat.

However, the findings showed that some companies defied the odds by tightening their belts, applying cost optimization strategies and innovative solutions to navigate Nigeria’s weak macroeconomic environment.

After surveying the 30 largest listed companies on NGX, BusinessDay’s analysis showed that MTN Nigeria, Dangote Cement, Zenith Bank Plc, Access Holding Plc, Guaranty Trust Holding Company Plc, Ecobank Transnational Incorporated, United Bank for Africa Plc (UBA), FBN Holdings Plc, BUA Cement Plc and Stanbic IBTC Holdings Plc were the most profitable companies in the nine months to September.

The companies posted a combined profit of 1.38 trillion naira in the nine-month period, up 8.81 percent from 1.27 trillion naira in the corresponding period of 2021.

Analysts attribute the earnings growth to marketing and distribution strategies, a diversified product base and the acceptance of the companies’ products among consumers across the country.

MTN Nigeria

MTN Nigeria reported a 22.12 per cent increase in profit to N269.04 billion in the nine-month period from N220.31 billion in the same period in 2021, leading the pack as the most profitable company in Nigeria.

The largest telecom network has a market value of N4.36 trillion and reported earnings per share of N13.30 per share in the nine-month period, up from N10.82 per share in the same period of 2021.

MTN started the year with a share price of N197 and gained 9.14 per cent to close at N215 per share on December 30, 2022.

Dangote Cement Plc

Dangote Cement is the largest cement company in Africa with a market valuation of Naira 4.4 trillion and an after-tax profit of Naira 213.31 billion in nine months, making it the second most profitable company in the country .

This gain, however, represents a decrease of 23.41 per cent from N278.25 billion in the same period of 2021.

The company declared earnings per share of N12.41 in the period compared to N16.23 in the corresponding period of 2021.

Dangote Cement started the year with a share price of N257 per share and gained 1.56 per cent to close at N261 per share.

zenith bank

Zenith Bank is the third most profitable company with a market capitalization of N770.78 billion and a profit of N174.33 billion in nine months. Its profit grew 8.56 per cent from N160.59 billion in the same period of 2021.

Earnings per share for the period was N5.55 from N5.11 in the same period of 2021.

The lender started the year with a share price of N25.40 but lost 5.51 per cent to close at N24 per share.

Access stock

Access Holdings reported a profit of N137.01 billion in the nine-month period, up 12.40 per cent from N121.89 billion in the same period of 2021.

The tier one bank has a market capitalization of N307.67 billion and reported earnings per share of N388 in the period under review, up from N346 in the corresponding period of 2021.

Its share price fell 10.5 percent to close at N8.5 per share on December 30, 2022.

Guaranty trust holding company

GTCO reported an after-tax profit of N130.35 billion in nine months, up 0.73 per cent from N129.40 billion in the corresponding period of 2021.

Guaranty Trust Bank’s holding company reported earnings per share of N4.55 in the nine-month period, up from N4.54 in the same period of 2021.

With a current market capitalization of N676.92 billion, the bank’s share price fell 10.09 per cent, from N25.58 per share at the start of the year to N23 per share on Friday.

Transnational Ecobank

Ecobank’s reported profit increased by 12.34 per cent to N117.41 billion in the nine-month period from N104.51 billion in the same period of 2021.

The bank has a market capitalization of N201.85 billion and has reported earnings per share of N335.58 per share for the nine-month period of 2022 from N301.06 per share in the same period of 2021.

With a current share price of N10.6 per share, Ecobank gained 22.54 per cent from N8.65 per share at the start of the year.

United Bank for Africa

UBA’s reported profit grew 10.95 per cent to N116.04 billion in the nine-month period from N104.59 billion in the same period of 2021.

The tier-one bank reported earnings per share of N3.27 in the period under review, up from N2.94 in the same period of 2021.

With a current market value of N259.92 billion, the bank’s share price fell 5 per cent from N8 per share at the start of the year to N7.6 per share on Friday.

FBN shares

FBN Holdings’ profit grew 123.80 per cent in nine months to N91.29 billion from N40.79 billion in the corresponding period of 2021.

First Bank of Nigeria holding company reported earnings per share of N2.51 in the nine-month period, up from N1.12 in the same period of 2021.

With a current market capitalization of 391.26 billion naira, the company’s share price decreased 8.02 percent to 10.9 naira per share on December 30 from 11.85 naira per share at the beginning of the year.

Also read: CAMA 2020: close the curtain on the unused shares of a company

BUA cement

BUA Cement, with a market capitalization of N3.31 trillion, increased its profit by 12.29 per cent to N74.01 billion in the nine-month period from N65.91 billion in the corresponding period of 2021.

The cement producer reported earnings per share of N219 in the period under review, up from N195 per share in the same period of 2021.

Its share price appreciated 41.67 per cent to N97.75 per share from N69 per share at the start of the year.

Stanbic Holdings IBTC

Stanbic IBTC Holdings reported a 38.15 per cent growth in profit to N55.19 billion in nine months from N39.95 billion in the corresponding period of 2021.

It has a market capitalization of N433.41 billion and reported earnings per share of N410 in the nine-month period of 2022 from N293 per share in the corresponding period of 2021.

Its share price declined 9.59 per cent to close at N33.45 per share on Friday from N37 per share earlier in the year.

Expert Comments

Tunde Adelakun, a research analyst at a consultancy, said companies responded to the macroeconomic challenges of 2022 by cutting capital spending to maintain profits.

“Corporate debt issuance declined significantly in the first half (H1) of 2021, due to higher borrowing rates and low liquidity,” analysts at CSL Stockbrokers said.

“The dynamics are unlikely to change in the second half as yields are likely to remain high,” they added.