THE harsh economic weather experienced in Nigeria in 2009 and in the first quarter of 2010 has continued to reflect in company results as Berger Paints plc and Fidson Healthcare Plc in their recently released results revealed a drop in income.
Berger Paints turnover was down by 6.1 per cent during its 2009 financial year with a turnover of N2.4 billion.
The company’s pre tax profits was up by 31.9 per cent, as it recorded a profit before tax of N152.2 million as against a pre tax profit of N148.7 million made in the 2008 financial year.
The company explained that its low debt and improved liquidity position in addition to conservative management had resulted in cost savings and improved production efficiency and effectiveness.
However, its profit after tax went down by 6.0 per cent to N193.3 million when compared to 2008 figures, while its pre tax and profit margins improved during the period to 13.6 per cent and 8.1 per cent respectively.
Experts believe that the future earnings potential of the company will continue to come under treat as the industry continues to face constrains such as lack of infrastructure and product adulteration, thereby impairing its profitability.
Meanwhile, Fidson Healthcare Plc in its third quarter results released posted a turnover of just under N4.0 billion a 1.4 per cent drop when compared to the equivalent period of 2009.