Greif, manufacturers of steel and plastic packaging products, bemoans the challenging business environment which has hampered its operations and affected its ability to comply with regulatory standards of the Nigerian Stock Exchange.
The Company made this disclosure on Monday, 4th of January, following the imposition of N429.5 million fines on 38 erring companies by the domestic bourse.
Specifically, the Lagos based company, in a notice filed on the exchange, explained that the delay in filing of its 2018 audited financial statements by 29 January 2019- the due date, was on the back of an audit exercise necessary to determine the state of the business following the closure of two branches last year.
Citing that its External Auditors had to exercise due diligence on the Financial Statements during the audit exercise to ensure all tax-related issues were resolved, and make certain that the results reflect the actual position of business operations for the year, as well as conform with all relevant statutory requirements.
The company, however, expressed optimism that it would be able ‘’to file the audited financial statements on or before 15th February 2019.’’
Greif Nigeria Plc, a subsidiary of Greif International Holding B.V. offers product including steel and plastic containers for industrial and domestic use, with service offering in packaging and logistics and Land management.
Although incorporated as Van Leer Containers (Nigeria) Plc in 1940, the Manufacturing and Marketing of Metal Drums Containers was renamed Greif Nigeria Plc in May 2004.
According to Grief, ‘’The 2018 financial year was a very challenging year’’ as the factories in Kaduna and Delta state were not yielding profitable returns, with Kaduna plant contributing just a tenth of its total revenue for Q1 2018 and the Delta plant virtually dormant.
The Board in May 2018, acceded to the ‘’closure of the factory branch network in both Koko, Delta State and Kaduna, Kaduna State and commencement of complete evacuation of all machines and equipment’’ during the accounting year in a move to consolidate its efforts on its Apapa plant, where the larger chunk of its earnings is derived.
Consequently, the company resolved to ‘’Embark on Apapa factory site improvement, capital expenditure and overhaul to meet the minimum standard of GREIF operation worldwide in terms of safety and operational excellence’’
BussinessDay analysis of the company’s most recent financials for Q3 to 31st of July 2018 show a 31.5 percent decline in revenue to N405.5 million compared to N591.6 in the corresponding period of 2017.
Despite the cost of sales for the Industrial Goods Company easing by 27.4 percent, gross profit declined by 48 percent to N42.7 million in the review period of 2018.
Greif made a negative operating profit of N1.9 million although, in the same period of 2017, operating profit was up to N54 million.
Profit before tax pared by an eye-watering 95 percent to N2.6 million from N55million in 2017, making little of the 549 percent gain or N4.5 million finance income for the nine months to July 2018.
Tax expense grew 157.4 percent as Greif recorded a loss after tax to the tune of N24.8 million even though it had posted a profit after tax of N44.4 million in the corresponding period of 2017.
Earnings per share, as a result, fell into the negative territory as shareholders lost N1.19 per share compared to N2.11 gained in 2017.
SEGUN ADAMS
