NIGERIAN ENAMELWARE: HARD TO PREDICT AT HALF YEAR

Nigerian Enamelware PLC is one company h with fortune had to predict  by half year to October.

According to the interim results released this week, this was because what it earns from non core activities hold the ace.

In the half year to October 2015, Nigerian Enamelware earned N21.6m from this source but this turned to be only just 18.7% of the total such income of N115.4m by the end of year in April, 2016.

With the year ending with profit before tax of N177m, out of which only 39.5% was earned by its half year, it is easy to discern that the growth in other income in the second half made a difference.

It certainly helped drive mid year profit margin of 4.18% to final 6.08%.

Now, in the half year to last October, the company earned N58.3m as other income and with a slightly higher profit (N71.9m) the margin again closed at 4.18%.

Now will the same other income do the trick once again and thus grow to about N322.1m by year end thus maintaining the previous year's trend? If it does that indeed will mean a lot for Nigerian Enamelware PLC.

However, something else may also set some pace for profit level come year end and that was the fact that as total income by half year grew by 9.52% to N1478.3m, administration expenses was brought down by 12.6% to N88.7m.

The rest cost components continued to apply pressure as cost of sales rose by 10.1% to N1217m and finance charges increased by 38% to N100.6m.

NIGERIAN ENAMELWARE PLC: Nm
                      Half year
                           2016.             2015
Total income   1478.3.          1349.8
Core income.   1420.0.          1328.2
Cost of sale.     1217.0.          1105.5
Other income.      58.3.            115.4
Administration.    88.7.            101.5
Finance cost      100.6.               72.9
Profit b4 tax          71.9.              69.9
Profit margin %    4.86.               4.18

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