Covid or no Covid, see how a LIVESTOCK FEED company in Nigeria made MEGA profits in 2020
Livestock Feeds Plc recorded a major boost in its 2020 FY pre-tax profits, as total revenue also recorded a 12.3% increase.
Livestock Feeds Plc– a company that manufactures animal feeds, reported pre-tax profits of N520.77 million in 2020 FY compared to N112.63 million reported in 2019 – a 362.37% increase.
Key highlights for 2020 FY
- Revenues increased to N11.18 billion, +12.30% YoY.
- Revenues from Aba increased to N2.0 billion, +24.45% YoY.
- Revenues from Ikeja increased to N5.78 billion, +11.98% YoY.
- Revenues from Onitsha increased to N1.15 billion, +77.37% YoY.
- Revenues from the North declined to N2.26 billion, -11.27% YoY.
- Other operating income increased to N86.38 million, +283.66% YoY.
- Cost of sales also increased to N9.92 billion, +8.67% YoY.
- Selling and distribution expenses increased to N316.13 million, +9.84%YoY.
- Finance costs increased to N140.09 million, +35.61% YoY.
- Pre-tax profits increased to N520.77million, +362.37% YoY.
- Earnings Per Share increased to 11.80k, +232.39% YoY.
Livestock Feeds Plc recorded a major increase in its pre-tax profits in the period under consideration, 2020 FY. The company also recorded increased revenues from three – Aba, Ikeja and Onitsha – of its four revenues generating units.
Despite increased costs, a cursory look at the results indicates that the company was able to record significant growth in pre-tax profits by containing costs of sales in the period, compared with the corresponding period of 2019. Costs of sales in relation to revenues was 88% in the period under consideration. It was 91% in the previous year.
Thus, gross profit was substantial (+52.39% YoY) compared to the corresponding period of 2019. The 283.66% increase in other operating income to N86.38 million, also aided the rise in pre-tax profits.