University Press Plc grew its revenue by 14.5 per cent to N3.895 billion in the financial year ended March 31, 2026, despite rising production, energy, transportation and financing costs that squeezed profitability.

The company disclosed this at its 48th Annual General Meeting, where management said the revenue growth reflected sustained demand for educational materials, particularly primary education titles, even as inflation and weakening purchasing power continued to affect the publishing industry.

Profit before tax, however, declined to N389.5 million from N619.7 million recorded in the previous year, while profit after tax fell to N213.7 million from N450.6 million.

The company attributed the decline largely to higher operating costs and the absence of exceptional income recorded in the preceding year, when it realised significant gains from the disposal of certain assets.

Cost of sales rose from N1.445 billion to N1.763 billion during the year, driven by increases in material,
printing, production and logistics expenses. Consequently, gross profit increased from N1.957 billion to N2.132 billion, but the gross profit margin narrowed from 58 per cent to about 55 per cent.

Marketing and distribution expenses also rose to N775.7 million from N694.7 million, reflecting higher transportation and sales costs as the company expanded its market coverage.

Profit from operations fell to N338.2 million from N541.3 million in the preceding year.

The Chairman, Obafunso Ogunkeye, said the performance demonstrated the resilience of the company’s core business despite a difficult operating environment.

He said inflation, high energy and transport costs, elevated interest rates and insecurity had increased operating costs while weakening the purchasing power of consumers and institutions.

According to him, foreign exchange movements and global supply-chain disruptions also increased the cost of paper, ink, machinery components and other imported inputs required by the publishing industry.

He added that insecurity and temporary school closures in some parts of the country, particularly the northern region, disrupted academic activities, institutional purchases and distribution of educational materials.

Despite the challenges, Ogunkeye said the company’s Northern Zone performed creditably, while demand for primary education titles remained strong.

The company also identified the Federal Government’s revised national curriculum for the 2025/26 academic year as both a challenge and an opportunity for the business.

Ogunkeye said University Press was reviewing its existing catalogue, revising affected titles and developing new learning materials to align with the revised curriculum.

He said the process would involve authors, editors, teachers, curriculum specialists and relevant education authorities to ensure that publications meet prescribed learning outcomes and market requirements.

The Chairman said the company would focus on tighter cost control, improved production efficiency, inventory management and commercially appropriate pricing to protect margins.

The company recommended a dividend of 18 kobo per ordinary share of 50 kobo, compared with 15 kobo paid in the previous year. The proposed dividend amounts to about N77.65 million and remains subject to shareholders’ approval.

Its net assets increased to N3.557 billion from N3.408 billion, while net current assets rose to N1.946 billion from N1.792 billion.

Cash and cash equivalents stood at N949.4 million at the end of the year, compared with N1.011 billion in the previous year, while inventory increased from N1.658 billion to N1.866 billion.

Managing Director/Chief Executive Officer, Samuel Kolawole, said the results highlighted the need for the company to convert revenue growth more effectively into profitability.

Kolawole said the company’s strategy for the 2026/27 financial year would focus on strengthening its core publishing business, improving operational efficiency and developing new channels through which learners and institutions could access its content.

He said the company would also accelerate investment in e-books, interactive learning resources and other digital products while maintaining printed books as a core part of its business.

“The future of publishing will be defined by how effectively traditional print is integrated with technology,” he said, adding that digital products would complement rather than replace the company’s established print publishing business.

Kolawole said the company would also review its product portfolio more deliberately, directing resources towards titles and market segments with strong educational value and commercial prospects.

He noted that printed books would continue to play a central role in Nigeria’s education system, particularly in communities where access to devices, reliable internet and digital infrastructure remains limited.

University Press said its nationwide distribution network, established catalogue, brand and experienced workforce would remain central to its strategy of expanding market reach and creating new revenue opportunities.

The company also maintained that its financial position remained resilient, with management noting that it was largely debt-free and had sufficient resources to meet its immediate obligations and support selected growth initiatives.

The Board said it would continue to monitor procurement, production planning, cash generation, capital allocation and risk management as inflation, energy costs, transportation expenses, insecurity and pressures on education funding remain key risks to the business.