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Rising cost deflates Learn Africa’s profit, two others


Learn Africa Plc and DN Tyre Plc reported losses in their quarterly results due to growing cost of sales and administrative/distribution cost. This also led RT Briscoe Plc’s profit to fall by 87.7 per cent.

The poor results prompted a negative return on their share prices within the week.

In its 2013 first quarter result filed at the Nigerian Stock Exchange, Learn Africa Plc recorded a significant loss after tax, depreciating by 994 per cent, with a N64.44 million loss as against a profit after tax of N7.32 million recorded in the same period of 2012. It revenue dropped by 78.6 per cent in the period under review, with N149.85 million as against N700.53 million recorded in Q1 2012.

The significant loss recorded was occasioned by its inability to manage its cost of sales effectively which rose by 81.11 per cent quarter to quarter and its distribution/administrative and cost other expenses which rose by 38.57 per cent.

The poor result declared by the company impacted negatively on its share price which fell to N1.65 per share on Wednesday from N2.00 per share recorded on Monday when it released its Q1 result to the investing public.

DN Tyre Plc 2nd quarter loss after tax slumped further by 5.6 per cent, recording a loss of N437.43 million as against a loss of N463.21 million in the same quarter of 2012. Its revenue also dropped to N81.81 million from N99.1 million recorded in its corresponding period of 2012.

Huge administrative and marketing expenses, as well as interest expenses and similar charges impacted negatively on the company’s bottom line. Its share price has remained at it nominal value of N0.50 year to date.

The company has been having a tough time in breaking through in its operations as it declared N826.864 million loss in its 2012 audited profit/loss after tax ended September 30 2012. The company increased its loss from N615.823 million recorded in the same period of 2011.

R T Briscoe Nigeria Plc profit after tax depreciated by 87.7 per cent, recording N8.4 million in first quarter of 2013 as against N68.17 million in corresponding period of 2012. Its revenue also fell to N5.24 billion from N5.46 billion in the previous period.

The company’s profitability margin witnessed a significant drop as a result of its financial cost depleting its operating profit by 96.3 per cent. It expended N355.7 million as its financial cost out of N368.1 million realised as operating profit in Q1 2013.

Its unimpressive result drove its share price to fall by 10 per cent between Wednesday and Monday this week that the company released its Q1 result to the investing public.

However, Fidson Healthcare Plc grew its first quarter revenue by N2.62 billion, rising by 55 per cent, as against N1.7 billion recorded in the same quarter of 2012. Its profit after tax rose by 60 per cent, recording N194.5 million in contrast to N121.4 million in 2012.

The company’s share rose by 14.1 per cent to close at N1.78 per share on Wednesday from N1.56 per share last Friday when it released its Q1 result to the investing public. The company recently releasing an impressive 2012 full year result, showing a profit after tax growth of 272 and proposed a dividend of N180 million, which   translates to   12 kobo dividend payout to shareholders.

Commenting on the results, the Finance Director, Fidson Healthcare, Mr. Olatunde Olanipekun, said  the improvements recorded  resulted from concerted efforts to raise performance and productivity.


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