Greif posts 41% hike in revenue as cost of sales soars by 38% to N1.15bn
The company’s end of year result for the period ended 31 October , 2017 showed that key performance indices closed positive, which if not checked could be eaten up by mounting cost of sale which ballooned by 38 per cent.
However, the company made no declaration of dividend, compared with 60 kobo paid in the corresponding 2016 financial year.
According to the result release by the Nigerian stock Exchange (NSE) recently, Grief Nigeria Plc posted a 41 per cent growth in revenue in 2017 which closed at N1. 405,218, from N 999,150 million recorded in 2016.
The result showed that cost of sales Cost of Sales closed the period at N1, 149,882, against N832, 998 in the preceding period of 2016, indicating -38 per cent rise. Profit before tax grew by 106 per cent to N77, 554, from N37, 597 in 2016.
The result further showed that total Comprehensive Income of Grief Nigeria grew by 82 per cent to N49, 424, from N27, 106 recorded in 2016.
The healthy 2017 result recorded by the company enhanced its earning per share for the period to close the year at 116 kobo, from 64 kobo in the preceding year.
Chairman, Grief Nigeria Plc, Adedayo A. Olowoniyi in a statement to shareholders that the country is restructuring its entire steel industry aimed at eradicating illegal plants producing steel products of inferior quality, closure of old plants and those not meeting new strict international standard on renewable energy.
He added that coupled with the challenges in domestic economy, especially erratic foreign exchange rate, 2017 was a very difficult year to navigate as the company also had its share of the challenges.
He said,“We, however, navigated the difficult business terrain by recovering our costs through multiple price increases to our customer, pragmatic cost reduction initiatives and improved efficiencies.
“In addition, we retained business focus by strict adherence to the discipline of the Greif business system and customer service excellence, running a lean production system with increased emphasis on continuous line improvement and waste elimination”.
The company achieved a turnover of N1, 405.218million for the period under review, an increase of 41% over the prior year figure of N999.15m. Total comprehensive income increased by 82% to N49.424m in 2017 as against N27.106m in 2016
“Due to a need to optimize our manufacturing footprint in Nigeria, and the impact it will have on operating working capital in an inflationary economy, the Board is unable to recommend a dividend for approval at this Annual General Meeting.
“Specifically, for our business, we have started facing new entrants to the industry, tougher competition, pressures on reduction of product prices due to relative stability in the foreign exchange and increasing need to restructure our entire business in order to face the issues of 2018.
“We will have to be proactive and make clear cut choices about how to compete and be unique in the market place, make clear definition of strategy and the business model of our core operations in order to ensure income growth and profitability”.
Bonny Amadi
