Presco Nigeria Plc has recorded an after-tax loss of N196million for the period ended 30th September 2017, compared with the profit after tax of N3.8billion reported in the corresponding quarter of 2016.
The report, released by the Nigerian Stock Exchange recently, showed no positive index as the result has triggered negative market sentiment expected to run a course in the prevailing fourth quarter, which is expected to end 31st December 2017.
Further to the declining nature of the result, Presco’s Q3 sales declined, and gross margin contracted by –3,991 basis points, year-on-year, to 55.8 per cent. While its net finance costs increased by 168 per cent, year-on year, it reported a N1.4billion loss on the revaluation of biological
assets.
Presco’s negative profit and loss lines were heavy enough to offset a -77 per cent decline in operating expenses and led to the weak bottom line. The underlying results reveal that Q3 PBT declined by -6 per cent. The company recorded N3.8billion gain on biological asset revaluation in Q3 2016.
Although Presco’s operating expenses declined by -76 per cent, it was completely offset by the sales decline, a -1,423 basis point gross margin contraction, a 66 per cent rise in net finance costs and the loss on biological assets revaluation, leading to the PBT decline.
The Chairman, Presco Plc, Mr. Pierre Vandebeeck, assured shareholders that the company was moving in the right
direction.
‘‘We are sailing in the right direction, making progress in all facets of our business and continually pushing forward in all fronts to sustain and further enhance our leadership position in our industry. We will ensure further expansions in our oil palm plantation hectarage, additional investments in processing facilities and support infrastructure and commencement of developments in the 14,000 hectare new project site in Orhionmwon Local Government area of Edo State for oil palm and rubber,’’ he said.
