Reports

Nigerian Enamelware returns to profitability amid factory shift

Nigerian Enamelware Plc has announced a return to profitability for its fiscal year ended April 30, 2025, despite relocating its factory from its current site in Ogba, Lagos State, to a new location at the Lagos-Ibadan Expressway, Isheri-Ibafo, Ogun State.

The company, known for manufacturing and marketing enamelware, plastic products, and galvanized buckets, in October 2024, revealed that the relocation process, expected to span over nine months before the recommencement of business operations, will significantly disrupt its business operations, potentially leading to substantial financial losses.

Despite previous expectations, the company achieved an after-tax profit of N39 million by April 30, from the N2.59 billion after-tax loss reported during the corresponding period in 2024.

According to Enamelware’s unaudited fourth-quarter financial statement, released on the Nigerian Exchange Group (NGX), revenues increased by 99 percent, reaching N1.4 billion, a substantial rise from the N718 million reported in April 2024.

However, this growth was offset by a dramatic rise in the cost of sales, which climbed to N1.47 billion from N530.65 million, totaling the company’s gross profit to N19.4 million, an 89.6 percent decline from N187.7 million.

Administrative expenses fell to N93.8 million, while other income increased to N114 million from N9.4 million.

Read also: Nigerian Enamelware slips to N2.58bn loss on debt provisioning

No income tax was recorded in 2025, and the net profit for the year stood at N39 million. This turnaround in profit impacted the company’s earnings per share, which rose sharply to N52 in FY’25 compared to a negative of N3,417 reported the previous year.

As of April 30, 2025, total assets stood at N2.69 billion, slightly down from N2.52 billion in 2024. The company maintained steady levels in property, plant, and equipment at N276.91 million, while inventory fell to N290 million from N382 million.

However, liabilities tell a cautionary tale. Trade and other payables rose to N2.2 billion, up from N2.04 billion a year earlier, bringing the company’s total liabilities to N3.4 billion in the fiscal year ended 2025.

The 65-year-old manufacturing company reported a loss in its shareholders’ fund amounting to N704 million; its retained earnings dipped to a negative N843 million, a stark reversal from the N1.75 billion reported in FY 2024.

Operating cash flow was under pressure, with N1.53 billion paid to suppliers and employees over the year, against N1.34 billion in receipts from customers, leading to a net operating cash deficit of N191 million.

Investment activities and financing activities were subdued with no corresponding capital inflow, pushing cash and equivalents down to N238 million from N429 million in FY 2024.

Despite the downturn, the company’s stock remained listed on the Main Board of the NGX with a share price of N25.30 as at April 30, 2025, up from N19.30 in January this year.