Despite economic challenges, MTN Nigeria, Dangote Cement, and Zenith Bank have emerged as three of Nigeria’s top five most profitable companies in 2022.
These companies have showcased remarkable resilience and achieved impressive financial results, solidifying their positions in the Nigerian business landscape.
Despite the adverse economic conditions, their success highlights their ability to navigate challenges and thrive in the competitive market.
MTN Nigeria emerged as the most profitable company with significant revenue growth and increased dividends to shareholders.
According to its audited 2022 financial report, the telecom giant recorded a profit before tax of N533.97 billion in 2022, representing a 22 percent increase from N436.7 billion in 2021.
Revenue surged by 22 percent to N2.01 trillion, making it the first Nigerian company to post revenue above N2 trillion. Its operating profit despite rising costs increased by 25 percent to N733.29 billion while Profit after tax was stated at N175.1 billion.
The company’s total dividend summed up to N317.53 billion from N267.1 billion in the previous year.
Dangote Cement came second, posting a profit before tax of N524 billion in 2022, down marginally by 2.7 percent from N538.4 billion in 2021.
The cement firm, which made most of its revenue from the sales of cement and clinker, saw its revenue increase by 17 percent to N1.62 trillion from N1.38 trillion a year ago, despite a decline in sales volume.
Operating profit improved slightly by 0.6 percent to N585.9 billion as net income increased by 4.9 percent to N382.3 billion, due to a decline in income tax expenses, which fell by 18.5 percent to N141.7 billion.
Dangote Cement declared a total dividend of N20 per share, amounting to a payment of N340.8 billion in 2022.
Airtel Africa Plc, which earns about 40 percent of its revenue from Nigeria, recorded a profit before tax of N461.3 billion in 2022 compared to N513.5 billion in the previous year.
This makes the telecom firm the third most profitable company in Nigeria.
Revenue surged by 18.5 percent to N2.34 trillion, while operating profit also increased by 21.7 percent to N783.8 billion. However, net profit increased by 5.6 percent to N334.6 billion in the review year compared to 2021.
The firm declared $0.05 as total dividends in the review year, translating to a dividend payment of N91.4 billion. Fourth on the list is Zenith Bank Plc, which recorded a pretax profit of N284.7 billion in 2022, a slight increase of 1.5 percent compared to N280.4 billion recorded in the previous year.
The bank, which was awarded the top bank in the country by Tier-1 capital posted a 23.5 percent Year-on-Year increase in gross earnings. It declared a total dividend payment of N100.5 billion, up from the N97.3 billion paid in the previous year.
Guaranty Trust Holdings ranked fifth on the list of most profitable companies in the country with a pretax of N214.2 billion, slightly lower than the N221.5 billion recorded in the previous year.
GTB posted revenue growth of 20.4 percent to N539.4 billion. Profit after tax also declined slightly by 3.2 percent to N169.2 billion from N174.8 billion recorded in the previous year.
It declared a total dividend of N88.29 billion to its shareholders in 2022.