International Breweries Plc, UAC of Nigeria Plc, Ikeja Hotel Plc, and 11 other companies listed on the Nigerian Exchange Limited have declared a loss of N38.77 billion in the 2022 financial year as opposed to N16.03 billion in the 2021 financial year due to the challenging business environment.
According to THISDAY, these companies’ loss before tax was significantly impacted by weak revenue generation, increasing energy prices, foreign exchange illiquidity, commodity cost headwinds, harsh weather, and general inflationary pressures. In the reviewed year.
In 2021, seven of the 14 businesses generated impressive profit before tax.
As a result, capital market analysts noted that these corporations may not soon announce dividend payout, emphasizing that their stock prices have depreciated lately over poor corporate earnings.
The companies with the largest losses in 2022 so far are International Breweries and UAC of Nigeria Plc, which both struggled with high operating costs, loan interest rates, and currency loss.
The analysis showed that International Breweries recorded a loss before taxes of N26.84 billion in the 2022 fiscal year as opposed to N19.84 billion in 2021, and UAC of Nigeria reported a loss before taxes of N4.37 billion as opposed to N4.11 billion in 2021.
International Breweries reported N218.65 billion in revenue in 2022 from N182.3 billion in 2021, but the brewer also experienced a 29% increase in its cost of sales and N10.68 billion in financing costs in 2022 from N4.8 billion in 2021, which ultimately caused the brewery to post a loss to N26.84billion.
The beer manufacturer reported revenue that was the largest in ten years, and loss before tax that was the second highest since the company revealed a N28.59 billion loss before tax in 2020.
Others companies with losses for two consecutive years are: Chams Holding Company reported N129.06billion loss before tax in 2022 from N493.03billion loss before tax in 2021; The Initiates Plc announced N43.37million loss before tax in 2022 from N62.24million loss before tax reported in 2021; Capital Hotel Plc reported N808.281million loss before tax in 2022 from N2.620million loss before tax in 2021; Secure Electronic Technology Plc announced N15.084million loss before tax in 2022 from N61.82million loss before tax in 2021; Tantalizer Plc posted N 264.091million loss before tax in 2022 from N214.821million in 2021 and FTN Cocoa reported N430.88million loss before tax in 2022 from N1.48billion loss before tax in 2021.
The company’s managing director, Theophilus Netufo, recently voiced confidence that the company would maintain its prominent position as Nigeria’s premier hotel and tourism enterprise.
He claimed, “We had no choice but to turn the company around since the new board came, and I was appointed to oversee the company as Group Managing Director, with collaboration and support of the board.
“As part of our plan, we establish the objective we want to attain, the means by which we will do it, and also get rid of roadblocks and bottlenecks along the route. Since then, progress has been made despite the economy’s difficulties.”
He mentioned that the business has decided to start the hotel’s extensive renovation in order to increase its competitiveness in the industry.
Additionally, Netufo announced that the business will diversify into related industries and create goods that would assist increase revenue and profitability.
In contrast to the N4.11 billion profit before taxes recorded in 2021, UAC of Nigeria reported an N4.37 billion loss before taxes in 2022.
The diversified company’s sales in 2022 increased by 8% from N101.38 billion in 2021 to N109.27 billion. The performance of the company in the analyzed year was impacted by an increase in overall operating expenses of 16.6% and a 13.4% increase in cost of sales to N95 billion.
Other notable businesses that switched from profits to losses in 2022 include Ikeja Hotel, which reported a N3.36 billion loss before taxes in 2022 as opposed to the N200.9 million profit before taxes reported in 2021; NCR Nigeria Plc; N801.9 million loss before taxes as opposed to N317.48 million profit before taxes in 2021; and Union Dicon Salt Plc, which reported an N44.96 million loss as opposed to the N39.97 million profit before taxes in 2021.
Additionally, Livestock Feeds Plc posted N781.39 million in profit before taxes in 2022 compared to N565.13 million in profit before taxes in 2021; SCOA Nigeria reported N525.08 million loss before taxes in 2022 compared to N526.46 million profit before taxes in 2021; and Neimeth International Pharmaceuticals Plc reported N388.05 million loss before taxes in 2022 compared to N365.28 million profit before taxes in 2021.
