The earnings of Livestock Feeds Plc, a manufacturer of animal feeds in Nigeria, rose by 774.4 percent within a year, according to its latest financial statement.
The statement shows that the company’s after-tax profit increased to N181 million in the first quarter of this year from N20.7 million in the same period of 2023.
Further analysis shows that the manufacturer recorded an increase in revenue from contracts with customers to N7.14 billion from N4.8 billion driven by sales of livestock feeds to Aba (N2.6 billion), Ikeja (N3 billion), Onitsha (N507.5 million) and Northern parts of Nigeria (N985.7 million).
The producer of animal feeds was established in 1963 by Pfizer as a subsidiary of the pharmaceutical business introduced into Nigeria a few years earlier.
It operates two owned plants in Ikeja and Aba, Nigeria with a joint production capacity of well over 35mt/hr and other operations in Onitsha and Jos.
Livestock Feeds serves Nigeria’s economic sub-sector of livestock, comprising activities such as poultry, Aquaculture, Cattle, Sheep and Goat rearing, Piggery, and Rabbitry.
However, its cost of sales surged by 34.4 percent to N6.04 billion from N4.5 billion while its gross profit increased to N1.09 billion in the first quarter of 2024 from N352.4 million.
Selling and distribution expenses increased to N70.6 million from N50.7 million and Administrative expenses also increased to N300.6 million to N157.8 million.
Operating profit surged by 358.4 percent to N739.9 million in the first quarter of 2024 from N161.4 million.
However, finance income decreased to N236,000 from N280,000 but its finance costs increased to N469.9 million from N130.9 million.
Livestock’s net cash flow used in operating activities increased to N3.5 billion from N459 million. Net cash flow used in financing activities increased to N3.2 billion from N547.6 million in the first quarter of 2023.
The non-current assets of the company on property, plant, and equipment increased to N1.2 billion in the first quarter of 2024 from N1.15 billion.
