QUARTER RESULTS: LIVESTOCK FEEDS, DN MEYER.

LIVESTOCK FEEDS: GOING STRESS.

For Livestock Feeds PLC in the first quarter of this financial stress was an ongoing experience.
According to the unaudited figures for the quarter, the only relief came from unexpected quarters: Finance as charges related to it dropped by 30% to N94.4m from N134.8m.
The quarter to March had ended with encouraging 11.7% growth in core revenue to N2091.4m but this was watered down to 10.3% increase in total income growth due to 30% decrease in income from other sources.
Yet that was just the beginning. Cost of sale closed 15.5% up at N1918.3m leading to 18% drop in gross profit.
Then selling and distribution cost rose by 19% to N51.9m coupled with 18.6% increase in administration expenses. All above revenue growth rate.
In the end, Livestock Feeds settled for only N3.42m profit, down 91.6$ on previous first quarter.
In other words, at 0.16%, the company's profit margin was dangerously close to the loss league compared to 2.11% by the same time in 2015.

LIVESTOCK FEEDS PLC: (Nm)
                      First quarter
                       2016.             2015
Total income 2136.2.        1936.4
Core revenue 2091.4.        1871.5
Cost of sale.  1918.3.        1660.4
Gross profit     173.1.           211.1
Other income   44.8.              64.6
Distribution       51.9.             43.6
Administration 68.2.              57.5
Finance cost     94.4.            134.8
Finance income  -                   0.28
Profit B4 tax.       3.42.           40.8
Profit margin %   0.16.           2.11

DN MEYER PLC: FLYING START.

Financial year 2016 may turn out to be one DN Meyer PLC may not forget in a hurry, if the flying start recorded in the first quarter is sustained or even improved upon.
According to the unaudited results, the least DN Meyer PLC had to worry about was the 3.13% increase in selling and distribution cost to N56.1m yet this was nothing alongside the 29.7% and 28.7% growth recorded in total income and core revenue respectively.
For starters, the core revenue growth was accompanied by only 23% increase in cost of sale to N201.2m.
Then, for good measure, finance charges dived by 94.2% to N1.76m and administration cost was brought down by 11.5% to N65.3m.
Naturally, this the recipe needed for profit before tax to close the quarter at N29.96m, putting a very comfortable distance ahead of  loss of N45m recorded previously.
Decoded it meant that compared to loss of N16.2 on each N100 in 2015 first quarter, a gain of N8.34 was now achieved.

DN MEYER PLC (Nm)
                      First quarter
                        2016.              2015
Total income 359.44.          277.04
Core revenue 349.2.             271.4
Cost of sale.  201.2.             163.6
Other income  5.12.               4.49
Distribution    56.1.               54.4
Finance income -                    1.15
Finance cost   1.76.              30.2
Profit b4 tax   29.96.           (45.0)
Profit margin % 8.34.         (16.2)

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