Multiverse mining and exploration Plc posted its first profit in nine years of N61 million in the first half of 2022 (H1 2022), findings by BusinessDay have shown.
Data gleaned from the firm’s latest financials showed the company which specialises in solid minerals, recorded an increase in revenue to N251.6 million in the first half (H1) of 2022, from N74 million in the same period last year thanks to improved activities in its mining of lead/Zinc ore business.
The company’s financials show that the mining operation part of their business resulted in N190 million in the first half of 2022, contributing substantially to the company’s revenue, up 160 percent from the N73 million recorded in the comparable period last year.
The quarrying segment of their business also drove revenue as it increased to N61.5 million in the period under review from N317 thousand in the same period last year.
The aforementioned business segments were the only drivers of revenue for the company in the period under review amongst their other business operations which include sales of dust, stone base, hardcore, and big lump.
BusinessDay’s analysis to evaluate the efficiency of the company in creating profit shows that its profit margin in this period stood at 24 percent.
However, the firm’s cost of sales skyrocketed more than revenue growth, up 5775 percent to N16.6 million in the first half of 2022 from N283 thousand in the same period last year.
Given the robust revenue growth, gross profit still grew significantly, up 219 percent to N235 million in the period under review from N74 million.
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The mining company recorded other income of N4.6 million in this period, although this was not recorded in the same period last year.
Return on average equity, which is a measure of a company’s financial performance that shows the relationship between a company’s profit and the investor’s return was 30.5 percent.
Likewise, Earnings Before Interest Tax Depreciation and Amortisation which is used to track the underlying profitability of companies regardless of their depreciation assumptions or financing choices was N134.3 million in H1 2022 compared to a negative of N42.6 million reported last year.
Operating expenses surged 94 percent to N90 million in H1 2022 from N46 million in the same period last year, likewise finance costs surged 105.7 percent to N62.6 million from N30 million.
Analysis of how quickly the company can turn its assets to cash shows that Multiverse’s cash flow declined by 53 percent to N1.2 million in H1 2022 from N2.6 million in the same period last year.
Breaking it down based on cash flow from various activities shows that net cash from operating activities resulted in N75 million in the period under review, up 299 percent from N19 million.
Net cash used in investing activities was negative of N3.6 million while net cash used in financing activities in this period increased to N72.8 million from N16.6 million.
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