Greif Nigeria Plc, an NSE-listed company has reported a loss before tax (LBT) of N245.2million in the financial year ended October 31, 2018. This represents a decline of 210percent when compared to profit before tax (PBT) of N77.554million which the company recorded same period in 2017.
The company has released its annual report and audited financial statements and supplementary financial information for the year ended October 31, 2018.
The company’s revenue declined in the review period by 62percent to N534.61million from N1.405billion in the preceding full year period of 2017. The company’s loss for the year stood at N262.58million against profit of N49.42million in the preceding full year period of 2017.
Shareholders’ funds at N98.83million represents 73percent decline when compared to N361.424million in 2017. Its loss per share at 616kobo represents 620percent decline when compared to earnings per share or 116 kobo in full year 2017.
Located in Apapa, Lagos State, Greif Nigeria Plc manufactures and markets steel drums in Nigeria. The company which was formerly known as Van Leer Containers (Nigeria) Plc changed its name to Greif Nigeria Plc in May 2004. Greif International Holding B.V The Netherlands owns 51percent stake in Greif Nigeria Plc, The Van Leer Nigerian Education Trust owns 23percent stake, while other Nigerian Citizens and Associations own 26percent stake in Greif Nigeria Plc.
“We have tried to navigate this difficult business terrain by recovering our costs through multiple price increases to our customers, cost reduction initiatives and improved efficiencies. However, we have not succeeded in that. We have lost our most important customer, halfway through the year and had to reduce prices to retain volumes, not fully recovering costs”, said Adedayo Olowoniyi, Chairman, Greif Nigeria Plc.
He said, “The trends that have started mid 2018 still continued in the first (fiscal) quarter of 2019. As a result of increased competition and a stagnant market for steel drums, we do not see an improvement happening in the near future.
“Greif Nigeria has been operating well below operating costs, even below direct material costs, and sees no signs of improved market conditions. Therefore, we have decided to stop operations with immediate effect. The coming months we will investigate on if and/or how we can continue with Greif Nigeria,” Olowoniyi noted in the report released to the investing public at the Nigerian Stock Exchange on February 6, 2019.
The Company’s significant overseas suppliers are ArcelorMittal International, Greif Shanghai, China, Wuxi Jiushun Steel, China and Proseal India. It has no distributors. All products are sold and delivered by the Company directly to the consumers.
Iheanyi Nwachukwu
