• Monday, July 22, 2024
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Learn Africa’s earnings sink 97% on high operating, finance cost

Learn Africa’s earnings sink 97% on high operating, finance cost

Learn Africa Plc, a book publishing company in Nigeria, has reported a 97.4 percent decline in its earnings for the financial year ended March 2024.

BusinessDay findings from the firm’s latest financial statement show that high operating and finance expenses drove down its profit to N11 million from N429 million in the previous year.

Operating expenses or OPEX rose to N1.91 billion from N1.3 billion. A breakdown of the company’s OPEX consists of distribution and selling expenses which rose to N815 million from N652 million and administrative expenses which rose to N1.08 billion from N693 million during the reviewed periods.

Similarly, Learn Africa’s finance cost surged by 107 percent to N29 million from N14 million, thereby denting its profitability despite steady revenue streams.

The company’s financial statement disclosed that its revenue from contracts with customers rose to N4.08 billion from N3.42 billion with Western Zone and its head office constituting the biggest share.

The cost of sales reported by Learn Africa claimed 48 percent of the firm’s total revenue reported during the period. Its cost of sales grew by 25.6 percent to N1.96 billion from N1.56 billion.

However, the company’s net finance income fell by 30 percent to N9.6 million from N13.8 million.

Learn Africa in its financial statement disclosed that the dip in its finance income was on the back of a decrease in its interest received on deposits.

Although the company’s gross profit rose to N2.12 billion from N1.9 billion, its operating profit fell by N280 million from N607 million due to high operating expenses incurred in the year.

Total assets fell by six percent to N4.86 billion in 2024 from N5.1 billion in 2023, its total liabilities also fell to N1.2 billion from N1.4 billion.

The decrease in value experienced in the company’s financial position also impacted its Shareholder funds by 2.7 percent to N3.6 billion in 2024 from N3.71 billion.

Further analysis reveals that Learn Africa’s cash and cash equivalent fell to N488 million from N1.05 billion during the period reviewed.

Movement of cash and cash equivalent reveal that net cash flows from operating activities dipped to a negative N148 million from a positive N1.13 billion.

Net cash generated from investing activities dipped to N202 million from N204 million. Net cash used in financing activities stood at a negative of N215 million from N152 million.

In February, Learn Africa launched its online AI-enabled mobile app aimed at breaking barriers to learning empowering learners to take control of their education, and offering access to many resources.

Bala Hassan, managing director at Learn Africa speaking at the unveiling ceremony said the mobile app represents more than just a technological advancement, but an innovation meant to revolutionise how to teach and learn.

“With features designed to enhance the learning experience, including access to all our books, assessment questions, and examination materials, the Learn Africa Online app is set to revolutionise how we learn and teach,” he said.