NCR NIGERIA: WHY THE COOKIE IS NOT CRUMBLING

Far from crumbling in today's harsh Nigerian business environment, the cake being baked by NCR Nigeria PLC seems destined to bring smiles to stakeholders faces come financial year end. That is, provided the trend for nine months to September holds through the year.

According to the unaudited figures released this week, the really good news was that cost of sale went down at a much faster rate than income drop.

From the figures total income was driven down 4.13% to N5127.1m by core revenue decrease of 4.1% to N5105.4m and investment income drop by 11.4% to N21.7m.

However, the cost of sale that generated the core revenue dropped by 23.9% to N3590.4m leading to 149% growth in gross profit to N1515.1m.

Thus the foundation for good profit was solid and even 178.5% increase in distribution expenses to N875.5m, could not wipe this out. Instead, with administration cost tumbling by 61.7% to N45.6m, profit before tax soared by 209% to N615.8m

In other words, by the end of the nine months to September, NCR Nigeria gained N12 on every N100 income as against N3.73 at the same time in 2015.

Eventually, the company's liquidity position improved beyond expectation within the period with working capital standing at N5389.1m compared to N1633.5m previously.

NCR NIGERIA PLC:Nm nine months
                              2016.         2015
Total income      5127.1.      5348.1
Core revenue      5105.4.      5323.6
Cost of sale.       3590.4       4715.2
Gross profit.       1515.1.        608.4
Distribution          875.5.        314.4
Administration      45.6.        119.1
Investment income 21.7.       24.5
Profit before tax.  615.8.       199.3
Profit margin %     12.0.           3.73
Working capital. 5389.1.     1633.5

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