SCOA Nigeria Plc, a conglomerate company, recorded a loss after tax of N317 million in the first quarter (Q1) of 2022, from a profit of N86.82 million in the same period last year.
This is due to the firm’s high cost of sales which accounted for 88.97 percent of the firm’s total revenue in the period under review.
The firm’s cost of sales surged by 340 percent to N1.21 billion in the first quarter of 2022 from N275 million in the corresponding period of 2021.
Data sourced from the Nigerian Exchange Group (NGX) shows that the conglomerate company recorded an increase in revenue by a whopping 176.99 percent to N1.36 billion from N491 million in the comparable period of 2021, the highest in five years.
A breakdown of revenue by class of business shows revenue from equipment amounted to N63.38 million, autos amounted to N16.36 million, and trading amounted to N2.86 million in the first quarter of 2022.
Its distribution/administrative and other expenses recorded in the quarter amounted to N345 million, a 23.21 percent increase from N280 million recorded in the first quarter of 2021.
The conglomerate company’s total assets declined by 0.38 percent to N23.36 billion in Q1 2022 as against N23.45 billion reported in Q1 2021.
Net assets, also known as shareholder’s equity also declined by 18.47 percent to N2.34 billion in the first quarter of 2022 compared to the corresponding quarter of 2021 where it recorded N2.87 billion.
SCOA’s cash and cash equivalents, which show the value of a company’s assets that are cash or can be converted into cash immediately, amounted to N14.17 billion in the first three months of 2022, a 14.37 percent increase from N12.39 million in the same period last year.
Its net cash generated from operating expenses however declined by 103.05 percent to record a negative cash flow from operating activities of N-362 million in Q1 2022 from N11.87 billion in Q1 2021.
This is partly due to the loss incurred by the company during the quarter.
A negative cash flow from operating activities suggests that the company’s cash outflow is more than its cash inflow. This means the company is not making enough money to cover its expenses.
The conglomerate company, however, recorded positive net cash from its financing activities of N263 million in the first quarter of 2022, compared to N-418 million recorded in the first quarter of the previous year.
Net cash flow from investing activities reported by the company surged to N1.88 billion in the first quarter of 2022 from N2.11 million in the first quarter of 2021.
SCOA Nigeria PLC is a Nigeria-based company, which is engaged in the distribution, maintenance, and leasing of motor vehicles; assembling, sales, and servicing of power generators, sales and servicing of earth-moving and construction equipment, industrial compressors, agricultural tractors, machinery, and implements.