Tripple Gee & Company Inks 42% Market Valuation Growth
Tripple Gee and Company Plc led the gainer chart on the Nigerian Exchange (NGX) as its share price increased by 42%. The packaging and container company’s popularity has taken a new dimension in the stock market, a signal that something is cooking.
In its 9 months of financial year 2023/24 earnings release, the company posted more than N224 million loss after tax versus N101 million profit registered in the comparable year.
This was a result of a more than 50% decline in turnover, from N3.176 billion at the end of March 2023 to N1.572 billion as of December 2023. The decline in turnover was majorly as a result of slowdown in printing services. Revenue from prints decline by about 47% to N631 million from N1.19 billion in 12 months.
The company’s costs of sales also worsened as inflation pressures filtered into the business environment. Costs of sales grew without commensurate growth in sales, putting pressure on margin.
This reduce gross profit significantly in December 2023, down by 66% to N244 million from N727.755 billion at the end of March of the same year.
Gross profit was down by 53% between Dec 2022 and December 2023 as a result of inflation run off on costs of sales.
Even as sales decline, distribution and administration costs increased by 11% year on year – resulting in about N126 million operating loss. This was worsened by finance costs
Tripple Gee is expected to release earnings results for 2023 amidst the ongoing rally in the local bourse.
The company has about 495 million shares outstanding valued at N1.989 billion on Friday, according to data from the Nigerian Exchange.
Total equities of Tripple Gee as of the end of the third quarter earnings ended in Dec 2023 was N1.001 billion. Of the sum, its non-controlling interest was N419.578 million.
Total assets were valued at N5.582 billion in the same period, representing a decline from N5.562 billion at the beginning of the year.
Amidst a high interest rate environment, the company cut short-term borrowing to N640.555 million from N820.614 billion at the beginning of the financial year 2023/24.
It however supports its working capital position with an increase in payable to suppliers. Payments to suppliers spiked to N1.103 billion in the 9-months of 2023 results ended in Dec, from about N637 billion in March.
The company’s long-term borrowing also decline in the period, signalling a deliberate effort to reduce balance sheet funding costs.
Tripple Gee’s earnings plunged at the end of 9 months of the financial year 2023. Detail from its financial scorecard indicated earnings per share turned red after taking a 360-degree U-turn from strong earnings per share in the comparable period.
At the end of 9m-2023, loss per share was N45.38 as against earnings per share of N24.83 at the end of its financial year ending in March 2023. #Tripple Gee & Company Inks 42% Market Valuation Growth#