Nigerian Enamelware Records Post-Tax Loss of N2.6bn, Revenue Jumps 216%
Nigerian Enamelware PLC, a manufacturer of enamelware, plastic products, and galvanised buckets, has reported a significant decline in its financial performance. According to the company’s audited financial statements for the year ended April 30, 2024, the firm recorded a post-tax loss of N2.6 billion, representing a 254% decline from the N1.7 billion profit recorded in the previous year.
Despite the decline, Nigerian Enamelware’s revenue saw a significant jump of 216% to N718.3 million compared to N227.3 million in 2023. The cost of sales rose to N530.6 million from N254.5 million, driven by higher material costs and other production overheads. Administrative expenses were reduced by 6.4% to N100.8 million.
Earnings per share plummeted by 254% to a loss of N34.17 from N22.18 in the previous year. Net assets per share also fell by 141% to N9.79 from N24.08, reflecting an erosion of shareholder value.
The company faced cash flow challenges, with net cash provided by operating activities dropping to N1.0 billion from N1.6 billion in the previous year. However, the number of employees and shareholders remained stable at 91 and 3,268, respectively. The firm paid N33 million in the period under review, lower than the N885 million paid in the previous year, due to a deferred tax amounting to N9 million.
Nigerian Enamelware’s financial performance is a cause for concern, and the company will need to take swift action to address its cash flow challenges and stabilize its operations.
