Due to rising input costs accounting for 80.75 percent of the company’s total revenue, SCOA Nigeria Plc has reported a loss of N395 million in the first half (H1) of 2022, down from a profit of N1.8 million in the first half of 2021
Finding by BusinessDay showed the firm’s total cost of sales grew by 101.67 percent in H1 2022 to N1.9 billion from N957 million in the first half of 2021, thereby straining its profitability margin.
The conglomerate company’s revenue also grew by N2.39 billion in the first half of 2022, up 85.37 percent from N1.29 billion in the corresponding period of 2021.
However, on a quarterly basis (q/q), revenue was down by 24.26 percent to N1.03 billion in the second quarter (Q2) of 2022 from N1.36 billion in the first quarter (Q1) of 2022.
Analysis by business showed that the company generated revenues from the equipment and auto operating segment, with equipment amounting to N2.32 billion and auto amounting to N80.98 million in the first half of 2022.
The conglomerate company also reported distribution/administrative and other expenses to the tune of N719 million in the first half of 2022, up 47.6 percent from N487 million in the first half of 2021.
Its total asset grew by 7.98 percent to N23.67 billion in the first half of 2021, as against N21.92 billion reported in the first half of 2021.
S C O A Nigeria’s net assets, however, depreciated by 25 percent in the first half of 2022 to N2.1 billion from N2.8 billion in the first half of 2021.
It’s cash and cash equivalent which shows the value of a company’s assets that are cash or can be converted into cash immediately amounted to N14.12 billion in the first six months of 2022, a 78.96 percent increase from N7.89 billion in the same period last year.
Net cash generated from operating expenses however declined by 72.98 percent to N2.04 billion in the first half of 2022 from N11.86 billion in the first half of 2021.
The conglomerate company’s net cash generated from its financing activities also declined by 94.02 percent to N-18.3 million in the first half of 2022 from N-301 million in the first half of 2021.
Net cash flow from investing activities reported by the company remained flat at N2.9 million in the first half of 2022.
The conglomerate company reported earnings per share of N-0.52 per share in the first half of 2022.
SCOA Nigeria PLC is a Nigeria-based company, which is engaged in the distribution, maintenance, and leasing of motor vehicles; assembling, sales, and servicing of power generators, sales and servicing of earth-moving and construction equipment, industrial compressors, agricultural tractors, machinery, and implements.