Meyer Plc: Decrease in paint sales depletes revenues

Meyer Plc reported revenues of N566.51 million in 2020 (YTD) compared to N858.32 million in the corresponding period of 2019.  

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 Key highlights for 2020 9M  

• Total revenues declined to N566.51 million, –33.99% YoY.  
• Revenues from paints declined to N551.99 million, –32.69% YoY.
• Revenues from application of paints declined to N14.53 million, –62.00% YoY.  
• Cost of sales declined to N360.41 million, -35.93% YoY. 
• Gross profits declined to N206.10 million, -30.33% YoY. 
• Other operating income increased to N25.75 million, +110.09% YoY. 
• Pre-tax loss increased to N98.23 million, +218.45% YoY.  
• Earnings Per Share increased to -20.20 kobo +195.32% YoY. 

READ: PZ Cussons suffers a pre-tax loss of N7.984 billion in 2020

Bottom Line

Meyer Plc recorded decreased revenues in its two revenue-generating units – paint sales and application of paint. 

Companies have generally recorded decreased revenues in the last three quarters mostly due to the negative impacts of COVID-19 on businesses worldwide. Meyer Plc was unable to grow its revenue in the period under consideration.

READ: FBN Holdings declares a Profit after Tax of N25.7 billion in Q1 2020

The pre-tax loss also increased in the period under consideration despite a reduction in the cost of sales and an increase in other operating income.