Livestock Feeds Plc, a manufacturer of animal feeds in Nigeria after-tax profit grew to N1.41 billion in the nine months of 2024 the highest in a decade, analysis by BusinessDay shows.
Data gathered from the company’s financial statement disclosed that its after-tax profit surged to 3,515 percent from N39 million reported in the same period last year.
The animal feed manufacturer started the year with a share price of N1.72, which has grown significantly by 183.1 percent to N4.87 as of January 3rd as disclosed by investing.com, a real-time financial data platform.
The company ended the year with outstanding shares worth 2.9 billion and with a market capitalisation of N11.6 billion thereby making it stand out as one of the most capitalised agricultural stocks on NGX.
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During the period the firm’s revenue surged 95.8 percent to N28 billion from N14.3 billion, driven by sales of livestock feed.
Further analysis reveals the firm made more revenue from Ikeja amounting to N13.2 billion while revenue from other places within Nigeria reported about 53 percent of the total revenue made.
Here are five things to note about the company’s financials:
Borrowings declined by 59%
Livestock Feeds Plc borrowings declined during the period to N4.1 billion from N10.2 billion.
Despite the 59 percent reduction in loans and borrowings acquired during the period, the company incurred interest of N919 million, 181 percent from N326 million reported in the nine months of last year.
Cost of sales surged 79.7%
The firm’s cost of sales increased to N23 billion from N113 billion during the period reviewed.
A further breakdown of the firm’s result disclosed that changes in inventories of finished goods and work in progress accounted for 92 percent of the total production cost.
Cash flows
The firm’s cash flows (used in)/ from operating activities was an increase in the amount reported from its core business activities amounting to N8.3 billion from N2.5 billion.
During the period its net cash flows (used in)/ from investing activities reported a negative of N390 million from N182 million.
Net cash flows (used in)/ from financing activities was a negative of N7.01 billion from a negative N2.59 billion. The company’s cash and cash equivalents increased significantly to N1.4 billion from N262 million.
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Other operating income
Livestock Feeds’ other operating income rose to N58 million from N48 million during the period.
Further breakdown shows that the company generated income from sales of sacks, laboratory income, weighing income, and sales of scrap, among other line items.
Earnings per share
The firm’s earnings per share rose to N47.1 per share from N3.1 per share.
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