UNIVERSITY PRESS PLC REPORTS 21% REVENUE INCREASE AMID FINANCIAL CHALLENGES
Overview:
University Press Plc has announced a revenue growth of 21% for the fiscal year 2023/2024, reaching a turnover of N2.63 billion. However, the company also faced significant challenges that resulted in a net loss after tax.
Key Details:
1. Financial Performance:
Revenue: The company achieved a turnover of N2.63 billion, up from N2.16 billion in the previous year, indicating an increase of N463.99 million.
Loss After Tax: Despite the revenue growth, University Press Plc reported a loss of N157.73 million after tax, primarily attributed to a foreign exchange loss of N388.20 million related to debts owed to a foreign supplier.
2. Chairman’s Statement: Obafunso Ogunkeye, the Chairman, attributed the revenue increase to effective sales strategies and sustained demand in the educational sector. He acknowledged the adverse effects of fluctuating foreign exchange rates on operations, highlighting the broader economic challenges.
3. Economic Context: Ogunkeye discussed several economic hurdles, including:
Naira Shortage: The first quarter of 2023 saw a severe naira shortage due to the Central Bank of Nigeria's stringent demobilisation policy ahead of general elections. Fuel Subsidy Removal: The removal of fuel subsidies in the second quarter led to a 200% increase in petrol prices. Currency Devaluation: The transition to a floating naira exchange rate resulted in significant devaluation of the currency, contributing to rising inflation rates.
Inflation rose from 21.82% at the start of 2023 to 28.9% by the year's end, largely driven by higher energy prices and currency devaluation effects.
4. Dividend Declaration: Despite the net loss, the board approved a dividend of 2.5 kobo per ordinary share, totaling N10.7 million for the fiscal year. This reflects the company’s commitment to providing shareholder value amid financial difficulties.
5. Management’s Perspective: Managing Director Samuel Kolawole noted that while turnover improved year-on-year, the financial bottom line was adversely affected by foreign exchange losses. He mentioned that this is the first time the company has reported a loss in recent memory and emphasized that challenges in the operating environment remain persistent.
6. Future Challenges: Kolawole warned that recent electricity tariff hikes could further threaten manufacturing activities in Nigeria, compounding the difficulties already faced by the company.
Overview:
University Press Plc has announced a revenue growth of 21% for the fiscal year 2023/2024, reaching a turnover of N2.63 billion. However, the company also faced significant challenges that resulted in a net loss after tax.
Key Details:
1. Financial Performance:
Revenue: The company achieved a turnover of N2.63 billion, up from N2.16 billion in the previous year, indicating an increase of N463.99 million.
Loss After Tax: Despite the revenue growth, University Press Plc reported a loss of N157.73 million after tax, primarily attributed to a foreign exchange loss of N388.20 million related to debts owed to a foreign supplier.
2. Chairman’s Statement: Obafunso Ogunkeye, the Chairman, attributed the revenue increase to effective sales strategies and sustained demand in the educational sector. He acknowledged the adverse effects of fluctuating foreign exchange rates on operations, highlighting the broader economic challenges.
3. Economic Context: Ogunkeye discussed several economic hurdles, including:
Naira Shortage: The first quarter of 2023 saw a severe naira shortage due to the Central Bank of Nigeria's stringent demobilisation policy ahead of general elections. Fuel Subsidy Removal: The removal of fuel subsidies in the second quarter led to a 200% increase in petrol prices. Currency Devaluation: The transition to a floating naira exchange rate resulted in significant devaluation of the currency, contributing to rising inflation rates.
Inflation rose from 21.82% at the start of 2023 to 28.9% by the year's end, largely driven by higher energy prices and currency devaluation effects.
4. Dividend Declaration: Despite the net loss, the board approved a dividend of 2.5 kobo per ordinary share, totaling N10.7 million for the fiscal year. This reflects the company’s commitment to providing shareholder value amid financial difficulties.
5. Management’s Perspective: Managing Director Samuel Kolawole noted that while turnover improved year-on-year, the financial bottom line was adversely affected by foreign exchange losses. He mentioned that this is the first time the company has reported a loss in recent memory and emphasized that challenges in the operating environment remain persistent.
6. Future Challenges: Kolawole warned that recent electricity tariff hikes could further threaten manufacturing activities in Nigeria, compounding the difficulties already faced by the company.