University Press Net Profit Up 75%, Offers N43.13m Dividend Payout

University Press, on Friday presented its audited result for the year ended March 31, 2018, just before the end of the regulatory deadline, highpoint of which was the robust growth in profit before and after tax, despite a sluggish revenue growth.

The directors also proposed a dividend of N43.141m, double the N21.57m proposed last year, translating to about 9.54 kobo per share; up from 4.99 kobo each.

Revenue from the sale of printed books within and outside Nigeria rose to N1.801bn, up by N192.945m or 11.99% to N1.608bn; with the western zone contributing N821.778m or 45.62% of total, up from N676.778m; followed by the northern zone with N553.603m, slightly more than the N543.491m recorded in prior year; while the eastern zone pooled N425.934m from N388.101m.

A further breakdown showed that sale of primary school books constituted the bulk revenue, at N1.003bn, followed by N547.024m from secondary school books; while N57.821m from tertiary/general reference of N57.821m. Segment cost of sales and operating profit was also highest in the primary section at N410.954m and N592.l571m; N223.897m and N323,127m; and N32.942m and N24.879m

Cost of sales rose marginally from N667.793m to N686.515m; resulting in gross profit of N1.114bn, representing N192.945m or 11.99% rise, compared to the N940.577m reported in the corresponding full-year of 2017.

A breakdown of the cost of sales showed that the western zone accounted for the lion’s share of N313.194m, followed by the north with N210.989m and the east, N162.332m, resulting in operating profit of N508.583m, N342.614m and N263.584m respectively.

Other operating income for the period rose three-fold from N32.725m to N99.095m; just as marketing and distribution expenses increased to N413.572m, compared to N385.945m; helped by N158.938m in the western zone, N151.058m in the north and N103.576m in the eastern flank; leaving a segment profit of N349.646m for the western operations, N191.556m, northern operations and N160.026m, eastern operations, totaling N701.228m. Administration expenses increased from N428.124m to N488.232m.

Foreign exchange loss reduced to N24.462m from N59.244m; resulting in profit from operations of N286.629m, which was far better than the N64.952m of 2017.

Finance income rose marginally from N64.952m to N66.996m, following which profit before tax climbed by N189.684m or 115% to N354.625m from N164.941m.

Tax expenses jumped by N100.691m or 216.43% from N46.523m in 2017, to N147.214m.

Actuaral loss on defined benefit plan soared to N68.97m from N15.492m; resulting in total comprehensive income for the year of N138.441m from N133.91m. Earnings per share rose to 48.08 kobo, from 27.45 kobo.

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