SURE 2016 GRIEF FOR GREIF NIGERIA PLC.

Nine months into the year, it is now obvious that steel drum manufacturer, Greif Nigeria PLC will end financial year 2016 in the loss league.

According to figures released for the period to July released this week, this was principally because it had to absorb 147.9% growth in foreign exchange related loss to N76.1m.

In all, Greif ended the nine months with N16.5m loss before tax and this certainly was just a fraction of real increase of N36m in exchange loss.

Agreed, there were pressures from other sources. For example. Cost of sale at N577.1m was up 20.9% thus ahead of 18.5% growth in core revenue to N693m it generated.

To worsen matters, selling and marketing expenses rose by 30.2% to N3.58m and finance income decreased by 17.2% to N2.94m.

The point though was that controlled administration costs would have helped to absorb these if the exchange loss had not more than doubled.

In the end, because of the loss recorded and 155.2% leap in prepayments to N102.6m, Greif Nigeria PLC was less comfortable in terms of liquidity despite drawing down inventories by 26.2% to N99.4m.

GREIF NIGERIA: Nm Nine months
                             2017.        2015
Total income      695.9.       588.3
Core revenue       693.0.      584.7
Cost of sale         577.1       477.3
Selling etc              3.58          2.75
Admin(+FX loss) 131.8.       78.0
Finance income    2.94.       3.55
Profit b4 tax.       (16.5).       29.2
Working capital  145.8.       202.6
Inventories.            99.4.      134.6
Prepayments.      102.6.        40.2

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