PAINTS & COATINGS MANUFACTURERS NIGERIA PLC: TAKING CONTROL.

When the figures of Paints & Coatings Nigeria PLC ( PCN ) for half year and nine months are laid side by side, it becomes obvious that the company is gradually taking control in spite of the tough times.
According to the figures released simultaneously recently, PCN's main headache remains cost of sale. By half year this had increased by 9.4% to N902.2m and refused to slow down during the third quarter hence growth by September jumped to 19.8%. It thus ended nine months at N1189.2m.
If not, even turnover growth responded better rising from 8.88% by June to 17% by September at N1946.1m compared to N992.5m a year earlier.
An additional ache was of course slow down in decrease in selling and distribution costs from the drop by 62.4% recorded by June to only 6.85% decrease to N13.6m. But at least, it was still a drop at a time sales growth improved.
Naturally, what selling and distribution ended up contributing to PCN bottom line could not be compared to 12.5% increase in administration costs by June reducing to only 6.78% growth by September to N681.1m.
Perhaps far more helpful was the slow down in increase in finance cost growth to 115.7% as against 255.6% monster by June.
Hence, by September PCN' profit before tax closed September at N58.5m down by only 17.6% compared to 40.9% drop by June.
Thus PCN's improved situation within the third quarter shows clearly as closing nine months gain on each N100 income came to N3.01 compared to 4.27% by September 2014.
In contrast, June closing profit margin was 4.71% representing almost half the 8.67% at the same time in 2014.
* If the good hold on costs can be extended to cost of sale, the year will end far better.
* Hey, what turned finance cost to such a heavy load?

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