Livestock Feeds Plc has reported a pre-tax profit of N57.04 million for the first quarter ended 31st March 2025, reflecting a decline from the N270.2 million reported in the same quarter in 2024.
This decrease occurred despite a significant rise in sales, with revenue increasing to N10.8 billion—a 51.30% jump from N7.1 billion last year—due to the impact of rising finance and sales costs.
- In terms of sales performance, Aba emerged as the leader with N4.8 billion, surpassing Ikeja, which accounted for N3.7 billion.
- Northern operations contributed N1.6 billion, while the Onitsha operations generated sales of N569.7 million.
However, the company faced challenges as its cost of sales escalated by 53.41% year-over-year, reaching N9.2 billion in Q1 2025.
- This increase was primarily driven by fluctuations in inventories of finished goods and work in progress, which accounted for N8.8 billion.
Despite these challenges, gross profit still increased, rising to N1.5 billion—up 39.70% from last year’s N1.09 billion.
Less favorably, administrative expenses rose significantly to N411.4 million, reflecting an increase of 36.87%. However, the company’s operating profit still grew, rising by 44.80% from N739.9 million to N1.07 billion.
- A cursory look reveals that the notable decline in pre-tax profitability is largely attributed to a sharp increase in finance costs, which soared to N1.01 billion—a staggering 116% increase—primarily driven by interest on loans totaling N851.1 million.
On the balance sheet, retained earnings saw a modest rise to N1.2 billion, up by 3.20% from N1.1 billion, while total assets remained at N23.04 billion.
Key highlights
- Revenue: N10.8 billion, +51.30% YoY
- Cost of sales: N9.2 billion, +53.41% YoY
- Gross profit: N1.5 billion, +39.70% YoY
- Administrative expenses: N411.4 million, +36.87% YoY
- Operating profit: N1.07 billion, +44.80% YoY
- Finance costs: N1.01 billion, +116.00% YoY
- Pre-tax profit: N57.04 million, -78.89% YoY
- Retained earnings: N1.2 billion, +3.21% YoY
As of the trading day on April 28, 2025, shares of the company are priced at N8.55 in the Nigerian stock market, reflecting a year-to-date performance of 107.52%.
The company achieved a year-to-date performance of 122.70% in 2024.
