• Monday, July 22, 2024
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BusinessDay

Rising Inflation bites deeper as Tripple Gee’s input costs hit 10-year high

The impact of Nigeria’s rising inflation is taking a toll on businesses in Africa’s biggest economy as Tripple Gee, a manufacturer of paper and packaging products has recorded its highest input cost in 10 years.

In its newly released half-year (H1) financial statement ending September 30, 2022, the firm’s cost of sales reported by the printing company grew faster than revenue by 212.26 percent to N1.194 billion in September 2022 from N382.3 million in September 2021.

Further analysis by BusinessDay shows that the paper company’s cost of sales claimed 80.75 percent of its total revenue reported in the period.

Revenue reported by Tripple Gee & Company during the period surged by 135.28 percent in September 2022 to N1.48 billion compared to N628.3 million in the corresponding period of 2021.

Profit reported by Tripple Gee & Company grew by 62.85 percent to N14.64 million in September 2022 from N8.99 million reported in September 2021.

Triple Gee, in its half-year financial statement, reported marginal growth in its distribution and administrative expenses by 0.35 percent to N227.4 million, against N226.6 million reported in September 2021.

Its finance costs surged by 452 percent to N36.13 million in the period that ended September 2022 from N6.55 million in the same period in 2021.

The document printer’s total assets were up by 42.52 percent in September 2022 to N4.96 billion compared to N3.48 billion in September of last year.

In the same vein, its total shareholder’s equity rose by 3.98 percent to N1.17 billion in its half-year 2022 report from N1.12 billion in the corresponding period of 2021.

Read also: PZ Cussons: Driving profit despite inflationary pressures

However, the company reported a decline in its cash and cash equivalents by 92.88 percent to N1.36 million in September 2022 from N19.11 million in September 2021.

Furthermore, its net cash from operating activities was reported as negative during the period, indicating that the company did not generate enough cash from its operations during the period.

Net cash flow from operations amounted to N-636.8 million in September 2022, a further decline from N-633.4 million in September 2021.

Further breakdown of its cash flow from operations shows that Tripple Gee paid dividends in September 2022 amounting to N29.7 million.

Its cash from financing activities grew by 5.95 percent to N740.4 million in September 2022 from N698.8 million in September 2021.

The printing company also reported negative cash flow from investing activities of N111.3 million in September 2022, a further decline from N-54.1 million reported in September 2021.

Tripple Gee & Company Plc reported earnings per share of N2.96 per share in September 2022, 62.64 percent higher than the N1.82 per share reported in September 2021.