University Press Plc records 21% increase in revenue

Chairman , University Press Plc, Obafunso Ogunkeye, has said despite challenges, the company has recorded a turnover of N2.63 billion for the fiscal year 2023/2024, marking a significant increase of N463.99 million or 21 per cent compared to the previous year’s N2.16 billion.

This growth, according to him, is a testament to the company’s robust sales strategies and the enduring demand for its products, particularly in the educational sector, which continues to drive its revenue. Ogunkeye stated this yesterday in Ibadan at the 46th yearly general meeting.

According to him, the financial landscape was not without its hurdles. The company incurred a loss of N157.73 million after tax for the year, largely due to a foreign exchange loss of N388.20 million on the amount owed to one of its foreign suppliers as of March 31st, 2024.

This loss, he said underscored the impact of the volatile foreign exchange rates on its operations and the broader economic environment in which the company operates.

Ogunkeye said in Nigeria, the journey was no less challenging. He said the first quarter of the year 2023 was characterised by a severe shortage of naira due to the stringent implementation of the Central Bank of Nigeria’s (CBN) demobilisation policy ahead of the general elections.

He said the removal of fuel subsidy in the second quarter and the implementation of a floating naira exchange rate system led to about 200 per cent increase in the price of petrol and devaluation of the Naira.

These factors according to him pushed the inflation rate from 21.82 per cent at the start of 2023 to 28.9 per cent by year-end, driven by increased energy prices and the ripple effects of currency devaluation on goods and services.

However, despite the financial challenges, the board approved a dividend of 2.5 kobo per ordinary share, totaling N10.7 million for the year 2023/2024. The approval reflects the company’s commitment to delivering value to its shareholders while ensuring the financial stability of the company.

In his remarks, the Managing Director, University Press Plc, Samuel Kolawole, said while the company managed to improve its year-on-year performance in terms of turnover, despite the serious challenges, the bottom line was negatively impacted by foreign exchange loss arising from liability to foreign suppliers due to the unprecedented fall in the value of the country’s currency, this, according to him is the first time the company is declaring a loss in recent memory. Kolawole said the challenges in the operating environment have persisted and not abated.

According to him, the effects of the twin policies mentioned above are even being compounded by the recent electricity tariff hike, which is also threatening to cripple manufacturing activities in Nigeria.