HOPEFUL QUARTER FOR TIGER BRANDED CONSUMER GOODS PLC

Tiger Branded Consumer Goods PLC (TBCG) erstwhile known as Dangote Flour Mills had a rather hopeful first quarter to December 2015 although it remains in the loss league.
According to the figures for the period released recently, TBCG ended with only N975.3m compared to N2987m loss recorded at the same time in 2014.
This was principally due to N962.4m profit from foreign exchange as against N1290.1m loss here previously.
In view of this TBCG had ended the quarter with only N39.1m operating profit loss compared to N2225.4m  such loss by December 2014.
However all the credit does not go to Forex gains but also to the decrease in direct cost even as core income rose very marginally and due to sound 40.7% increase in income from other sources.
Core revenue had increased to N10672.1m from N10665.4m but this was accompanied by 0.97% decrease in direct cost to N9405.9m from N9498.2m.
This resulted in 8.49% increase in gross profit to N1266.2m as against N1167.1m previously.
The situation was helped further by the increase in income from other sources to N9.03m from N6.42m.
But then, TBCG could not stay atop its overheads with distribution and administration costs rising by 7.97% from N2108.9m to N2276.7m.
This was the main pressure that led to the marginal operating loss recorded.
Then, of course, finance costs closed 23% higher at N936.5m leading to the nearly one billion naira loss for the quarter.
SO:
* It certainly will be smoother sailing if TBCG can take charge of its overheard during the rest of the year.
* One good thing though, if previous year is anything to go by, business used to flow in more after the first quarter.

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