Enamelware ends 2014 with 16.46% increase in net income

Enamelware Nigeria plc has impressively ended 2014 financial year with a 16.46 percent rise in net income as the company continues to tap into the country’s growing economy, analysis of its financial shows.

The 2014 audited financial statement of thea company showed profit after tax (PAT) increased by 16.46 percent to N86.15 million from N73.97 million the same period of the corresponding year (ended April) 2013, while sales were up 2.39 percent to N2.57 billion.

Based on BusinessDay’s analysis, the company’s gross profit margin increased to 15.17 percent in 2014 from 12.17 percent the preceding year, while operating profit margin jumped to 7.01 percent in 2014, as against 6.80 percent in 2013.

Enamelware is also seeking organic growth through merger and acquisition as it recently announced the acquisition of Universal Nigeria Industries Limited (UNICO) with a view to forming synergies.

The objective of this union is to diversify the basis of our operations/activities, reduce cost, and make the best use of both our human and capital resources in a rapidly changing economy like in Nigeria, according to the company’s chairman, Ola Yusuf, during the presentation of the 2013 annual report posted on its website.

This is a good surviving strategy put in place by your Board to face economic challenges of today, said Yusuf, saying that the company will tap into the robust Nigeria economy and its growing population and burgeoning middle- class.

The last rebased GDP estimates by the National Bureau of Statistics (NBS) puts the Nigerian economy at $510 billion (N80.22trn) outstripping South Africa as the largest economy in Africa.

Nigeria’s economy expanded by 6.23 percent in the third quarter of 2014, while inflation moderated to 8.1 percent, according to the NBS data.

The company’s cost of sales margin reduced to 84.82 percent in FY (ended April  2014)  from 87.42 percent as of FY (ended April ) 2013, while cost of sales remained flattish at N2.18 billion.

“The year was again marked by a spate of challenges in the operating environment, but our company showed resilience and remained focused during the period in spite of the circumstances,” said Yusuf.

Enamelware’s total assets surged by 40 percent to N3.08 billion in the review period from N2.20 billion in the period under review, while total equity increased by 5.08 percent to N1.24 billion the preceding year.

The company’s directors also recommended the payments of dividend of 45k ordinary per 50k ordinary share amounting to N28.51 million for the year ended April 30, 2014.

Enamelware’s share price closed at N32.27 billion on the floor of the NSE, while market capitalisation was N2.04 billion.

BALA AUGIE