University Press’ half-year pre-tax profit declines 7.22% to N747.07 million

University Press Plc has released its H1 2026/2027 results reporting a pre-tax profit of N747.07 million for the six months ended September 30, 2026, representing a 7.22% decline from N805.17 million recorded in the corresponding period of 2025/2026

The unaudited report also shows that in the second quarter of its 2027 financial year, covering July to September 2026, pre-tax profit declined by 8.48% to N900.76 million from N984.29 million in the corresponding quarter of 2025.

However, this represented a recovery from the N153.69 million pre-tax loss recorded in the preceding quarter.

Also, the company’s half-year revenue declined by 3.53% to N2.67 billion from N2.76 billion, while profit after tax fell by 7.46% to N496.97 million.

Key Highlights

• Revenue: N2.67 billion (Down 3.53% YoY from N2.76 billion).
• Gross profit: N1.66 billion (Down 1.17% YoY from N1.68 billion).
• Operating profit: N716.13 million (Down 8.32% YoY from N781.10 million).
• Pre-tax profit: N747.07 million (Down 7.22% YoY from N805.17 million).
• Profit after tax: N496.97 million (Down 7.46% YoY from N537.03 million).
• Earnings per share: 115 kobo (Down 7.26% YoY from 124 kobo).
• Cost of sales: N1.01 billion (Down 7.18% YoY from N1.08 billion).
• Total assets: N5.75 billion (Up 21.49% from N4.73 billion).
• Cash and cash equivalents: N899.89 million (Down 5.22% from N949.44 million).
• Total equity: N3.98 billion (Up 11.79% from N3.56 billion).

Driving the numbers

University Press’ half-year performance reflects weaker book sales across two of its three operating zones, although lower production costs helped cushion the decline in revenue.

• Revenue from printed books declined by 3.53% to N2.67 billion, with the Western Zone remaining the company’s largest market.
• Sales from the Western Zone declined by 7.44% to N1.20 billion from N1.29 billion, accounting for approximately 44.85% of total revenue.
• The Northern Zone contributed N855 million, down 1.53% from N868.29 million, representing 32.08% of total revenue.
• However, the Eastern Zone recorded growth of 1.97% to N614.74 million from N602.87 million, contributing 23.07% of revenue.

Despite the decline in sales, the cost of sales fell faster, decreasing by 7.18% to N1.01 billion from N1.08 billion.

Consequently, gross profit margin improved to 62.24% from 60.76%, although gross profit declined marginally to N1.66 billion.

Operating expenses, however, continued to weigh on profitability

Marketing and distribution expenses increased by 8.52% to N420.68 million from N387.66 million, while administrative expenses rose by 2.89% to N527.64 million from N512.82 million.

• These increases contributed to an 8.32% decline in operating profit to N716.13 million.

Finance income provided some support, increasing by 28.55% to N30.95 million from N24.07 million. The company did not separately report finance costs.

• Consequently, pre-tax profit declined by 7.22% to N747.07 million, while profit after tax fell by 7.46% to N496.97 million.

The second-quarter figures nevertheless revealed a significant recovery from the first quarter, with pre-tax profit reaching N900.76 million compared with a first-quarter loss of N153.69 million.

Balance sheet

On the balance sheet, total assets increased by 21.49% to N5.75 billion as of September 2026, from N4.73 billion at March 2026, driven largely by higher trade receivables and inventories.

• Trade receivables rose to N969.63 million from N25.44 million, while inventories increased to N1.97 billion from N1.87 billion.
• The increase in receivables was particularly significant for cash generation. Although the company reported N496.97 million in profit after tax, net operating cash flow amounted to only N3.28 million, reflecting substantial working-capital requirements.

Cash and cash equivalents consequently declined to N899.89 million from N949.44 million, while total liabilities increased to N1.77 billion from N1.17 billion.

Market reaction

University Press shares closed at N4.55 on Thursday, October 29, 2026, reflecting a 24.2% year-to-date loss compared to its opening price of N6.00, ranking 114th on the Nigerian Exchange in terms of year-to-date performance.