Enamelware Nigeria announced its third quarter results for the period ended January31, 2019 last week. Gross revenue was down by 18 percent from N1.13 billion in 2018 to N923.8 million in 2019. The same trend manifested in other financial metrics such as gross profit and operating profit. Gross profit fell by 19 percent to N247.5 million in 2019 down from N306 million in 2018. Operating profit declined by 43 percent to N158 million from N275.9 million in comparable period last year.
Nigeria Enamelware was incorporated in Nigeria on 21 may 1960 as a limited liability company. It became a listed company on the Nigerian Stock Exchange on 28 December 1979 in line with the Indigenisation Decree of 1977. The company adopted Nigerian Enamelware on June 6, 1991. It has since created a niche for itself in the production and marketing of enamelware, plastic products, and galvanised buckets.
A further examination of its financials shows that its current level of profitability is very fragile as to sustain it requires that its management think out of the box. For the reference period, profit before tax stood at N13.4 million which is a marginal improvement over a loss before tax of N4 million in comparable period in 2018.
Nigeria Enamelware made N9.4 million profit compared with a loss after tax of N4.6 million in similar period in 2018. Total assets fell to N3.7 billion compared with N4.6 billion in similar period, while shareholders funds remained flat at N1.422 billion compared to N1.423 billion in 2018.
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