Livestock Feeds Plc, a subsidiary of United Africa Company of Nigeria (UACN), recorded a decline in profit by 89.8 percent to N18.1 million in the first quarter (Q1) of 2022, from N176.5 million in the same period last year.
Data sourced from the Nigerian Exchange Group (NGX) shows that the animal feed manufacturer recorded an increase in revenue by 8.3 percent to N3.64 billion from N3.36 billion in the comparable period of 2021.
On a regional basis, revenue from Ikeja saw the most improvement, up 27 percent to N2.40 billion in Q1 2022, from N1.89 in Q1 2021. While revenue from Aba, Onitsha, and Northern operations was down by 11.8 percent, 25 percent, and 14.3 percent respectively.
The rising inflation rate impacted the cost of sales to increase by 9.5 percent to N3.23 billion in the first quarter of 2022 from N2.95 billion in the first quarter of 2021, claiming 88.7 percent of the company’s revenue.
The company recorded a profit before tax of N27 million, an 85.8 percent steep decline from the N190 million recorded in the comparable period of 2021.
However, the agribusiness selling and distribution expenses declined by 28.6 percent to N40 million from N56 million in the comparable periods under review.
Its administrative expenses increased by 9.6 percent to N114 million in the first three months of 2022 from N104 million reported in the first three months of 2021.
Livestock feeds reported total assets amounting to N12.82 billion in the first three months of 2022, an 18.4 percent increase from N10.83 recorded in the first three months of 2021.
Similarly, its total shareholder’s equity appreciated by 0.8 percent to N2.52 billion in March 2022 as against N2.50 billion in March 2021.
The agricultural company reported an increase in cash and cash equivalents to N631 million in Q1 2022, a whopping 309.7 percent increase from N154 million in Q1 2021.
The cash and cash equivalent show the value of a company’s assets that are cash or can be converted into cash immediately.
Net finance costs recorded by the company in the first quarter of 2022 amounted to N229 million, a 308.9 percent surge from N56 million in the first quarter of the previous year.
Analysis by Businessday that gauges the profitability of the company relative to its revenue shows a profit margin of 49 percent.
Livestock feeds earnings per share declined by 89.6 percent to 0.60 kobo in Q1 2022, from N5.88 kobo in the corresponding quarter last year.
Livestock Feeds Plc is a pioneer in the production of animal feed in Nigeria.They operate two owned plants which are strategically located in Ikeja and Aba with a joint production capacity of well over 35mt/hr and other operations in Onitsha and Jos.