• Friday, February 23, 2024
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Less cash for Meyer Plc as loss hits N17m

Less cash for Meyer Plc as loss hits N17m

Meyer Plc is not benefitting from the paint industry as the company’s net cash from operations declines to N-156.9 million in 2022, showing that the paint manufacturer’s core business operations are not generating enough cash.

With the firm’s core business activities not generating enough cash, the firm resulted to increasing short-term borrowings by 203 percent to N20 million in 2022 to cater to its working capital needs.

The paint manufacturer also reported a loss of N17 million in 2022, down from a profit of N33.7 million in 2021, due to the rising cost of production.

The total cost of sales grew by 40 percent to N1.02 billion in 2022 from N725.73 million in 2021 and claimed 70.81 percent of its total revenue during the period which increased by 28.35 percent to N1.44 billion in 2022 from N1.12 billion in 2021, the highest reported by the paint maker in seven (7) years.

Furthermore, selling and distribution surged by 70.76 percent during the period to N48.24 million from N28.25 million in 2021 while administrative expenses increased by 12.11 percent to N516.88 million in 2022 from N461.03 million in 2021.

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Finance income increased to N82.74 million in 2022 from N83.41 million in 2021, while finance costs soared by 278 percent to N3.78 million in 2022 from N1 million in 2021, on the back of soaring interest rates experienced during the year.

Total assets during reported the period declined by 3.95 percent to N1.94 billion from N2.02 billion in 2021, while total shareholder’s equity declined by 1.62 percent to N1.04 billion from N1.05 billion in 2021.

Total cash and cash equivalents dipped by 4.95 percent to N1.33 billion in 2022 from N1.39 billion in 2021, while the movement of its cash and cash equivalents reveals that net cash flow from investing activities for the period amounted to N95.99 million.

As part of investing activities, Meyer Plc purchased property, plant, and equipment worth N12.77 billion, while it received proceeds from the sale of old property, plant, and equipment of N26 million during the period.

It also repaid short-term borrowings of N4.8 million and finance charges of N3.78 million, thereby bringing net cash flow from financing activities to N-8.58 million during the period.

Consequently, earnings per share totaled N-3 per share in 2022 from N7 per share in 2021.

Meyer PLC is the Manufacturer and Marketer of high-quality Paints, including Architectural Paints, Wood Paints, Auto refinishes, Industrial and Marine, Road lining Paints, Roof coatings, Tube coatings, HP coatings, and Adhesives.