University Press 2026 profit falls 52%, dividend rises to 18 kobo

University Press Plc has released its audited 2026 results for the period ended March 31, 2026, reporting pre-tax profit of N389.52 million, down 37.15% YoY from N619.74 million in the prior year.

Also, profit after tax declined by 52% to N213.67 million, compared to the N450.63 million in 2025

Against its Q4 forecast, reported pre-tax profit came in slightly above the forecast of N388.10 million, while profit after tax missed the forecast of N256.14 million.

Even though profit missed forecast and declined, the directors, however, recommended a dividend of 18 kobo per ordinary share of 50 kobo each, amounting to N77.65 million, subject to shareholders’ approval at the Annual General Meeting.

The proposed dividend is subject to withholding tax and is payable on 24 September 2026 to shareholders whose names appear on the register as at the close of business on 31 August 2026.

Key Highlights (2026 FY vs. 2025 FY)

• Revenue: N3.89 billion (Up 14.47% YoY from N3.40 billion)
• Gross profit: N2.13 billion (Up 8.91% YoY from N1.96 billion)
• Operating profit: N338.16 million (Down 37.53% YoY from N541.35 million)
• Earnings per share: 49.53 kobo (Down 52.58% YoY from 104.45 kobo)
• Total assets: N4.73 billion (Up 4.98% YoY from N4.51 billion)
• Cash balance: N949.44 million (Down 6.06% YoY from N1.01 billion)
• Shareholders’ funds: N3.557 billion (Up 4.3% YoY from N3.408 billion)

Driving the numbers

Universal Press ‘ bottom-line performance was largely driven by higher direct costs, higher operating expenses and a drop in other income, notwithstanding the growth in revenue

• Revenue grew slower than the cost of sales and was driven by:
• The Northern zone, where sales rose to N1.45 billion from N1.04 billion, representing 37.19% of total revenue.
• The Western zone remained the largest contributor at N1.76 billion, or 45.25% of revenue, while the Eastern zone contributed N683.67 million, or 17.55%.
• By product category, Primary books provided the strongest support, rising to N2.22 billion from N1.55 billion and accounting for 57.07% of total revenue.
• Secondary books declined to N1.56 billion from N1.77 billion, while Tertiary and General Reference books rose to N111.04 million from N87.66 million.

Despite the increase in revenue, profitability weakened because costs and non-core income moved against the company.

• Cost of sales increased to N1.76 billion from N1.45 billion, outpacing revenue growth and reducing gross margin to 54.74% from 57.53%.
• The biggest cost item was the cost of books sold, which rose to N1.45 billion from 1.15 billion, while royalties remained material at N251.35 million.
• Marketing and distribution expenses also rose to N775.70 million from N694.73 million, while administrative expenses were broadly flat at N1.13 billion.
• Other operating income fell to N56.90 million from N404.94 million, largely reflecting a much lower profit on disposal of property, plant and equipment compared with the prior year.
• Finance income also declined to N51.36 million from N78.39 million, and no finance-cost line was disclosed in the statement of profit or loss.
• As a result, operating profit dropped to N338.16 million and profit after tax declined to N213.67 million.

Balance sheet

Total assets grew by 4.98% YoY to N4.732 billion, with current assets accounting for over 62% of the total assets.

The current assets are driven by a high inventory of N1.87 billion; 39% of the total assets, and PPE of N1.34 billion, which is 28% of the total assets.

On the equities/liabilities side, total shareholders’ funds increase by 4.37% to N3.557 billion, which is over 75% of the balance sheet size

Cash flow

The cash-flow statement shows net cash used in operating activities of N11.60 million, an improvement from N377.93 million used in the prior year, but working-capital movements, especially inventory build-up and higher receivables, continued to absorb cash.

Market reaction

University Press Plc began the year at N6.00 and closed at N5.15, representing a 14.17% year-to-date loss and a 16.26% month-on-month loss. At this price, the stock was trading at 69% of its 52-week high.