No Dividend For Livestock Feeds Investors, As Profit Slides 18.96%

The board of Livestock Feeds Plc, on Tuesday complied with one of its post-listing requirements by submitting its audited 2016 financials 48 hours ahead of regulatory deadline.
The result, among others, showed that the little growth in turnover was swallowed up by a higher percentage increase in cost of sales, as well as the marketing and distribution, as well as administrative expenses, which left gross profit slimmer than in the 2015 financial year. More importantly for shareholders is the failure of the directors to recommend a dividend, as net profit sagged by 18.96%
Turnover rose by N2.104bn or 23.47% to N11.067bn from N8.963bn, while cost of sales rose from N8.071bn to N10.094bn, representing a growth of 25.06%, resulting in gross profit of N972.971m, up from the previous N891.652m.
Other operating income fell to N233.869m from N357.608m; marketing and distribution expenses rose from N191.574m to N214.337m; admin expenses grew to N319.391m, as against N280.973m in the preceding full year, leading to profit from operations of about N673.112m, compared to the N776.712m recorded in 2015.
Finance expenses fell from N521.949m to N456.28m, just as finance income dropped by 84.21% from N45.352m to N7.158m, leaving a net finance expense of N449.122m, as against the previous N476.597m.
Profit before tax fell to N223.99m, down by 25.36% to N223.99m, just as net profit dropped by N35.636m or 18.96% from N187.917m to N152.281m, representing Earnings Per Share of 7.61 kobo, down from 9.40 kobo in 2015.

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