Meyer Plc, a manufacturer and marketer of high-quality paints, has recorded its second nine-month profit in five years in the third quarter of 2021, thanks to the surge revenue and the increase in its finance income.
The company grew its profit after tax by 109.4 percent to N9.4 million in nine-month of 2021, compared to the loss of N100.5million reported in the same period last year.
The profit reported by Meyer Plc in the period under review is the company’s first nine-month profit in two years.
Compared to the N71.7 million loss reported in the nine months of 2016, the 2021 profit was better by 98.8 percent. The profit recorded by the Group for the nine months of 2021 is the first profit since 2018.
During the period under review, Meyer Plc grew its revenue by 34 percent to N749.2 million from N566.5 million in the first nine months of 2020, while the cost of sales gulped N504.7 million compared with N360.4 million recorded in Q3 of last year.
The revenue was gathered from the sales and application of Paints. The income from both sources increased by 36.8 percent year on year and a 73.3 percent decrease, respectively.
The paints makers, said in its financials that it generated N35.9 million as other operating income in the third quarter of this year, higher than the N25.8 million it generated in the same period of last year. Its finance income rose to N67.1 million from N42.3 million.
In the period under review, Meyer Plc spent N18.6 million on selling and distribution expenses compared with N15.4 million used for the same purpose in the same period of the previous year. Its administrative costs gulped N323.4 million, lower than the N350.0 million reported in the first nine months of 2020, which was impacted by the outbreak of the novel coronavirus pandemic.
The company’s high operating cost, though lower than the figures reported in 2020 resulted in an operating loss of N51.7 million. (N133.5 million was reported in Q3 2020).
Breakdown of the financial report revealed that Meyer’s profit on disposal of property, plant and equipment decreased to N1.6 million in the review period from N3.1 million reported in the comparable period of 2020.
Rental income also decreased to N805million in 2021 from N2.4 million in the comparable period of 2020.
Sundry income on the other hand increased to N31.6 million in the ninth month of 2021 from N18.3 million in the same period of 2020.
The sale of empty drums also increased to N1.9 million in 2021 from N1.8 million in the same comparable period of 2020.