The reliance on bank borrowings to finance its operations continued to have a negative impact on the fortunes of
Financing costs jumped by 193 per cent from N2.86 billion in 2018 to N6.706 billion in 2019, thereby depressing profit after tax (PAT) to N2.422 billion, down from N7.969 billion in 2018.
An analysis of the results showed that
Other income rose on the back of N2.763 billion realised from sale of property, plant and equipment to hit N4.597 billion in 2019 compared with N1.451 billion in 2018. The company ended with an operating profit of N10.358 billion, up from N9.812 billion in 2018.
However, net financing cost jumped from N2.286 billion to N6.706 billion in 2019. Consequently, profit before tax fell from N12.098 billion to N3.652 billion. A reduction of 70 per cent in taxation from N4.137 billion in 2018 to N1.231 billion in 2019, made PAT to print at N2.422 billion, down from N7.961 billion in 2018.
Some shareholders of
According to one of the shareholders, the chairman of
"The company can even capitalise some its reserves by issuing bonus shares to shareholders.
Copyright This Day. Distributed by AllAfrica Global Media (allAfrica.com)., source