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Meyer Plc management fails to curb cost, as N504.70m paint expenses eat into nine months revenue



Meyer Plc management is having a battle keeping the company’s cost of sales in check amid declining inflation and rising dollar rate in Nigeria, as it eats into the firm’s revenue.

In its financial statement for the nine months period of 2021 obtained by Ripples Nigeria, analysis shows that cost of doing business grew higher than turnover from sales.

Revenue generated between January to September 2021 grew by 34 percent, as Meyer Plc grossed N759.15 million, against the N566.51 million recorded during the corresponding period of 2020.

The turnover growth fell behind the cost of sales, which rose by 40 percent during the period under review, as it cost Meyer Plc N504.70 million to produce its paint in nine months, against the N360.41 million used same period last year.

READ ALSO: Domestic investors gain over N30 billion in single day trading as Meyer lead gainers

Rise in cost of sales reflected on the profit grossed between Q1 to Q3, as it settled at N254.45 million, 23.4 percent higher than the N206.09 million profit of the corresponding period.

The financial statements, however, showed that the company is exiting a negative period of 2020 when Meyer Plc recorded N98.40 million loss, N13.53 Profit Before Tax was recorded in nine months of 2021.

But profit after tax was low, sitting at N9.47 million, exiting the N100.52 million loss recorded between January to October last year.

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