QUARTER RESULTS: TOTAL NIGERIA, UACN.

TOTAL NIGERIA PLC: REWARD OF HOPE

In tough 2015, Total Nigeria PLC kept its own hope alive by investing in new plant and equipment thus raising closing value by 5.33% in spite of depreciation provision.
Of course, this threw some liquidity challenges on its way but, says first quarter figures to March 2016, even that is now under control.
True as far as revenue and cost of sale was concerned, it could only be inferred from the quarter figures that things were looking better although drop in revenue was still recorded.
It looked better because revenue drop was very marginal and more importantly, cost of sale decreased at a faster rate. So unlike in 2015 year when gross profit drop was it, 35.7% increase to N8893m was reported.
The more outstanding good news was that income from other sources spiralled to N304.7m; administration cost dropped by 7.88% to N3793.5m and finance charges declined by 45.1% to N254m although 50.5% decrease in finance income to N88.2m almost spoiled the fun.
Hence all said and done, Total Nigeria ended the quarter with N3843.3m profit before tax, more than triple previous first quarter profit.
Decoded: by March, the company's profit margin was 6.4% compared to 1.59% at the same time in 2015. And its liquidity position was better too with working capital closing at N4489.8m deficit as against N7823.5m deficit previously.

TOTAL NIGERIA PLC (Nm)
                   First quarter
                          2016.            2015
Total income 60097.7.       60310.0
Core revenue 59704.8.       60042.7
Gross profit     8893.0.         6550.7
Other income   304.7               89.2
Distribution.   1395.1.          1280.7
Administration 3793.5.        4118.2
Finance income   88.2.           178.1
Finance cost      254.0.           462.3
Profit b4 tax      3843.3.         956.8
Profit margin % 6.40.            1.59
Working capital (4489.8).  (7823.5)

UACN PLC: STILL GROANING

The struggle continues for UACN PLC as it groaned some more in the first quarter to March after 2015 trying times.
According to the unaudited results for the quarter, decrease in revenue seems to have slowed but cost pressure is still having upper hand.
It was because of this UACN closed the quarter with its profit margin down to 9.81% compared to 2015 first quarter 12.5% and indeed, compared to full year 2015's 10.4%.
At issue was that gross profit dropped by 6.24% because a marginal 1.19% decrease in core revenue was accompanied by increase in cost of sale
Then as income from other sources dropped by 11%, selling and distribution cost increased by 11.8% to N878.4m and finance cost closed 0.20% down.
In view of the fact that finance income also declined by 26.8% to N230.4m, the final drop in UACN PLC profit before tax by 23.1% during the quarter to N1766.7m was inevitable.
UACN PLC liquidity position was more solid though with working capital closing at N11525.5m from N7978.7m but as receivables rose by 2.41% atop 17.6% and 11.5% increase in long term loan and overdraft respectively.

UACN PLC (Nm)
                       First quarter
                       2016.             2015
Total income 18014.8.      18343.4
Core revenue 17517.9.      17729.4
Cost of sale.  13593.0.      13543.3
Gross profit.   3924.9.          4186.1
Other gains.      266.5.           299.4
Distribution.      878.4.           785.5
Administration 1647.1.       1655.4
Other losses.       -                    1.33
Finance income 230.4.          314.6
Finance cost      793.8.          792.2
Associates profit 664.2.        739.4
Profit before tax 1766.7.      2296.2
Profit margin %     9.81.          12.5
Working capital 11524.5.    7978.7
Overdraft.           19535.6.   17522.5
Long term loan   9553.4.      8125.6
Receivables.       14945.1.   14593.8
Inventories.        29312.3.    25283.1

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