THIRD QUARTER: SCOA DOWN; CAP PLC ABSORBING BLOWS


SCOA NIGERIA PLC: COUNTING LOSSES.

Since the year SCOA Nigeria PLC has been putting up gallant fight to stay in control of its fortune but, alas, nothing doing, says the third quarter figures released recently.

According to the figures, sought desperately for profit and better liquidity position but, things still got worse by September as it crashed into N963m loss compared to N421.3m previously and working capital closed N1262.2m negative.

Yet it did try its very best especially in cost control. There was a 20.7% drop in core revenue to N3022.7m but this was mitigated somehow with higher 24.1% drop in direct cost deployed to generate it to N2176.5m.

Then, administration cost was driven down by 12% to N721m but 18.1% drop in income from non-core sources to N20.8m did not help matters.

Finally, liquidity pressure forced SCOA Nigeria to seek N6410.7m new financial liability thus almost doubling its finance cost to N1109m, up 94.3%.

One clear wrong step in terms of liquidity position was the 70.6% reduction in trade payables to N843.4m while growing receivable by 4.75% to N2792.2m and drawing down inventories by 28.8% to N3076.9m.

Combined with the higher loss and despite the new financial debt, raw cash position dived by 67.7% to N136.2m.

In the end, SCOA Nigeria closed the nine months losing N31.6 on each N100 income compared to N11 loss on the same income level by September 2015.

It looks like the full year can not end any better, all things being equal.

SCOA NIGERIA: Nm, Third quarter.
                          2016.          2015
Total income  3043.6.       3835.6
Core revenue. 3022.7.       3810.2
Cost of sale.   2176.5.       2867.0
Admin. etc.       721.0.         819.1
Other income.     20.8.          25.4
Finance cost.  1109.0         570.7
Profit b4 tax.   (963.0).     (421.3)
Profit margin % (31.6).       (11.0)
Working capital (1262.2)  614.3
Inventories.       3076.9.   4322.2
Receivables.      2792.2.  2665.6
Payables.             843.4.  2873.0
Cash.                    136.2.   422.6
Financial debt   6410.7.      -

CAP PLC: THE BLOWS KEEP LANDING

Veteran paints manufacturer, CAP PLC is absorbing blows from the macro economic environment fairly well but they keep landing on target.

According to third quarter figures released recently, CAP PLC ended with only slight drop in profit margin to 31.2% compared to 32.5% by the same time in 2015 year.

But, let's face it, CAP PLC lost part of its ability to absorb them. For example, core revenue dropped by 7.61% to N4709.5m but gross profit depressed faster by 11.5% to N2316.4m because cost of sale drop came to only 3.52%.

Then finally profit before tax went down by 12% to N1516.9m principally because finance income dropped by 39.7% to N96m and in spite of 22.5% decrease in selling and distribution expense to N295.3m and 35.4% increase in income from other sources to N55.1m.

The chances are that year end figures may not be any worse and given the trying times for manufacturers presently, that's good news of sorts

CAP PLC: Nm Third quarter
                     2016.          2015
Total income 4860.6.    5297.6
Core income  4709.5.    5097.6
Cost of sale.   2393.2.   2480.6
Gross profit.   2316.4.   2617.0
Distribution.    295.3.      381.2
Administration 655.3.    712.1
Other income     55.1.      40.7
Finance income 96.9.    159.3
Profit b4 tax.   1516.9.   1723.6
Profit margin %  31.2.       32.5

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