Academy Press Plc, a leading printing and publishing firm in Nigeria, Monday in the form of capital depreciation got its share of the tough operating environment, which triggered increased costs of production for most companies in the country, as its share price fell to its lowest level in more than 13 years.
The stock dropped 8.89 percent to close at 41 kobo on the floor of the Nigerian Stock Exchange (NSE), the cheapest since November 1, 2006, after the Lagos-based company released its financials for the nine months ending December which saw it enmeshed in losses amounting to N178.7 million as against N121.88 million losses recorded in the corresponding period of 2017.
The losses recorded by Academy Press were largely driven by low returns coupled with soaring cost of sales as witnessed by some of its peers in the printing and publishing business.
This is despite the company cutting its administrative expenses, which include payment of workers’ salaries, by over 8 percent to N348.85 million, and finance expenses on banks loans and equipment lease by 32 percent N124.67 million.
Revenue recorded in some of the company’s products like Calendar, Diaries, Books and Labels was not enough as declined turnover from AR/ Brochure and Security combined to weigh heavily on its total returns in the review period.
Gross Profit of Academy Press plunged by 27.16 percent as sales dipped 6 percent to N1.49 billion from N1.58 billion in the same period a year earlier, while the total costs used to create its goods sold surged by 2.48 percent to N1.16 billion from N1.13 billion. This caused its gross margin to wane to 22 percent from 29 percent.
Academy Press prints labels, calendars, company annual reports, books, magazines and other materials. The company further provides printing related services like visuals, layout designs, typesetting, artwork, photography and colour separation. It was incorporated on July 28, 1964, and listed on the NSE on June 15, 1995.
OLUWASEGUN OLAKOYENIKAN
