Post Views: 69 Presco on Friday presented its audited financials for the year ended December 31, 2017 indicating that growth in cost of sales was slig...
Presco on Friday presented its audited financials for the year ended December 31, 2017 indicating that growth in cost of sales was slightly lower than that of revenue, just as selling, general and administrative expenses jumped 72.11%.
The biggest decline for the year was the 88.77% drop in the gain on biological asset revaluation from N24.879bn in 2016, to just N2.789bn; a situation that was mitigated by the N14.452bn tax credit, compared with the tax expense of N9.49bn in 2016.
The directors of Presco have offered a dividend of N2bn, translating to a dividend per share of N2 per share; up from N1.5bn or N1.50 in 2016.
According to the result, Presco Plc’s revenue for the year rose by N6.649bn or 42.3% from N15.716bn in 2016 to N22.365bn, of which local sales contributed N18.885bn, up from N14.824bn; compared with N3.369bn, which was a significant improvement from just N891.224m. Cost of sales rose by N1.523bn or 34.88%to N5.941bn, from N4.404bn, the biggest of which was the management fees of N2.299bn (nil: in 2016); followed by the staff costs of N1.03bn, as against N824.964m; even as transport and travelling expenses climbed from N124.152m to N567.937m; just as clearing and handling expenses increased to N327.78m from N131.859m. Following which Gross Profit increased by N5.112bn or 45.19% from N11.311bn to N16.424bn.
Selling and general administribution expenses jumped to N7.184bn from N4.174bn; distribution expenses climbed N93.303m or 72.11% to N317.248m from N223.945m; even as other gains rose to N94.869m or 80.06% from N119.489m in 2016 from N213.358m.
Operating profit before changes in fair value of biological assets, tax and finance cost therefore climbed by N2.103bn or 29.92% from N7.031bn to N9.135bn.
Gain on Presco Plc’s biological asset revaluation fell sharply to N2.789bn from N24.879bn; just as financial costs rose to N973.479m from N684.655m, with interest on loans gulping N588.128m, down from N598.919m. Interests on overdrafts jumped to N385.351m, as against N85.736m. Profit before tax of N25.403bn, representing a rise of N3.668bn, or 16.87% from N21.735bn in 2016, to N25.403bn.