[upme_private]Fast food giant Tantalizers Plc released its 2013 H1 results indicating revenues continues its steep decline back to back for two years. Revenues dropped 18.5% tp N1.7billion (2012 H1: N2.1billion, 2011 H1: N2.2billion). Operating profit was a loss of N258million even as cost of sales and operating expenses remain contained. Pre-tax losses this year N280million more than double the loss it posted same period last year.
Key Highlights
- The drop this year in comparison to 2012 and 2011 shows the company is rapidly loosing market share
- Retained earnings remain deep in red but can still be reversed if the company can increase revenues
- The Tantalizers brand has suffered serious brand dent in recent years as competition from the likes of KFC intensifies
- However, the 8% equity injection from KFC is expected to help change things as they plan to use the money to renovate branches making them more exciting to consumers already spoilt with choices.
- The only issue however is that the 8% equity investment only amounts to N128million cash by my estimates and may not be enough to create the impact it urgently requires.
- This result shows N208million was spent this year on investments.
- The company still has about N181million cash in the bank but generated a near zero Ebitda.
Tantalizers Plc released its 2013 H1 results in the website of the NSE[/upme_private]