Meyer Plc Records 61% Increase in Market Value
Premium paint and allies products manufacturer, Meyer Plc, registered a sharp gain due to exceedingly stable positive price movement despite a slowdown in market performance.
The steep repricing of the company’s market value which printed at N3.67 billion came even though the board of directors had no declaration of dividend for 2023. In its earnings results, the company’s profit slumped to N237 million, a significant reduction of 40% from about N394 million posted in 2022.
Details review showed that earnings per share jerked down by exactly 39.20% year on year to 48 kobo from 79 kobo over 12 months. Moving against stock market performance, the company’s share price rose by about 61% as investors took positions in industrial stocks amidst an expectation that the paint maker’s earnings would rebound.
According to data from the Nigerian Exchange, Meyer Plc’s share price rose to N6.91 per share on Friday, representing a strong increase of 60.7% week on week from N4.30. This week, the benchmark index plummeted by a substantial 2.45% week-on-week to 101,858.37 index points, as profit-taking activities dominated the market amidst weak breadth and elevated volatility.
Meyer Plc grew revenue to N2.226 billion at the end of the fourth quarter of financial year 2023, from N1.435 billion in the comparable period in 2022. The company’s cost of sales also increased amidst accelerating headline inflation in Nigeria.
Other operating income of the paint-making company nosedived strongly at the time when its distribution and administrative expenses recorded a year-on-year upsurge. The major drivers of its overhead expenses were carriage outward, in addition to sales and promotion spending. #Meyer Plc Records 61% Increase in Market Value# Nigerian Exchange Loses N1.4trn as GSK Delists