Records N16.12m Loss, As Earnings Slide By 33.5%

Tripple Gee & Company Plc, on Thursday presented its unaudited result for the third quarter ended December 31, 2016, the summary of which was that the directors may not pay dividend this year based on the business activities by year-end March 31, 2017, except the board opts to put smiles on the faces of its shareholders by dipping hands in the retained profit of N148.713 million.
In an accompanying note to the account, the management lamented that “profit margins are continuously being eroded as a result of continuous depreciation of the Naira.”
At the end of third quarter financials showed a loss after tax of N16.12 million, as against the slim profit of N2.606 million in the corresponding period of last year, amidst a N178.71 million, or 33.5% fall in turnover from N532.948 million in the corresponding period of 2015, to N354.238 million.
The management also tried to keep costs of sales among others in check, as it dropped by the same percentage to N247.123 million from N373.94 million; resulting in gross profit of N107.115 million, compared to the N159 million reported in the previous third quarter.
Distribution and administrative expenses was flat at N94.526 million, from N95.135 million; leaving the company with an operating profit of N12.589 million, a significant decline from N63.873 million reported in the preceding third quarter.
Also, despite an ‘other income’ of N350,000 and the 54% drop in finance cost from N55.585 million to N25.517 million; loss before tax came to N12.578 million, as against a profit of N8.288 million.
After tax loss of the company within the period translated to loss per share of 3.26 kobo, as against the 53 kobo earnings per share for the corresponding period of 2015.
These, not withstanding, the management however assured that it is “vigorously exploring new opportunities in the economy.”
Over the next few quarters, how far such exploratory activities would lead Tripple Gee & Company would become clear.