Five things to note from Tripple Gee’s 2021 financials

The financial year-ending-March 2021 report from Tripple Gee Company Plc, a manufacturer of paper and packaging products, has shown how the sale of packaging materials drove revenue to N1.51 billion in 2021 compared to the previous year when N2 billion was recorded, consisting more of printing services.

The company recorded a decline in revenue and profit after tax in 2021. Its share price also declined by 9.37 percent from N0.96 to N0.87 year-to-date.

Here are major talking points;

Revenue declined by 24.9%

In the full year 2021, ending March, the company recorded a 24.9 percent decline in revenue to N1.51 billion from N2 billion last year.

In the report, turnover in 2021 from packaging was 71 percent of the total revenue, resulting in N1.1 billion from N619 million in 2020.

Printing, which made the bulk of revenue in 2020 reduced to N434 million in 2021 from N1.39 billion.

In the past six years, Tripple Gee’s revenue has grown by 86.8 percent, from N806 million in 2016.

Profit After Tax declined by 33 %

The company’s PAT also declined by 22 percent to N66.24 million in 2021 from N85.88 billion in the previous year.

The reduction in PAT is as a result of a decrease in revenue as it incurred a reduction in all but one of its expenses.

The cost of sales declined to N1.06 billion from N1.59 billion, resulting in an increase in gross profit to N450.5 million from N419.94 million.

Read also: Tripple Gee unveils new printing press, eyes expansion

Distribution and administration expenses increased to N316.59 million. However, the company earned an 8692.1 percent increase in ‘other gains’ to N8.68 million from an ‘other loss’ of N101 thousand last year.

The exchange rate difference also declined to N81 thousand in 2021 from N783 thousand in 2020, while finance costs declined to N44.64 million from N46.93 million.

Cash flows from financing activities

Net cash outflows from financing activities stood at N979.21 million in 2021, compared to N416.66 million in the corresponding period last year.

This reflects the proceeds from loans and borrowings, which totalled N1.12 billion in 2021 from N456.7 million in the previous year, a dividend payment of N34.65 million from N29.7 million, and repayment of loans and borrowings, which increased to N103.82 million from N10.37 million in the previous year.

Cash flows from operating activities

Net cash flows from operating activities stood at N501.2 million in 2021, up from N98.76 million incurred in the previous year.

Cash flows from investing activities

Net cash used in investing activities stood at N1.48 billion in 2021, up from N323.2 million in the previous year.

In the first half of 2022, Tripple Gee was listed among the fastest-growing companies in Africa by the Financial Times. It was one of the 21 companies in Nigeria that made the list.

Covering the period between 2017 and 2020, while taking the COVID-19 pandemic into consideration and highlighting the companies that successfully adapted to the resultant challenges, the FT’s ranking showed the company’s absolute growth rate of 170.142 percent and a compound annual growth rate of 39.272 percent.

Tripple Gee’s revenue stood at $5.584 million in 2020, up from N2.428 million in 2017, as reported by FT.