Tantalizers PLC released its 2024 second quarter results, showing a pre-tax loss of -164.7 million.
This represents a 42.17% year-over-year offset from a loss of -284.9 million reported in 2023.
According to the report, cost of sales decreased by 51.26% year-over-year, from -742.3 million recorded in the previous year.
Reduction in the cost of sales and cash injections from shareholders cushioned the impact of revenue decline due to low customer patronage in Q2 of 2024.
Key Highlights:
Net Revenue: 559.9 million, -51.97% YoY
Cost of sales: -361.8 million, 51.26% YoY
Gross profit: 198.1 million, -53.21% YoY
Administrative Expenses: -388.7 million, 54.14% YoY
Net Finance costs: -31.4 million, 70.14% YoY
Pre-tax loss: -164.7 million, 42.17% YoY
Cash & cash equivalents: 72.7 million, 204.00% YoY
Commentary:
The company’s Q2 net revenue fell by -51.97% YoY due to an increase in the cost of living exerted by the harsh economic factors affecting its customers.
However, due to the reduced cost of sales, the fall in revenue for Q2 of 2024 did not worsen an already present pre-tax loss.
Although gross profit fell by -53.21% year-over-year from 423.4 billion in Q2 of 2023, the decrease in administrative expenses aided in the reduction of pre-tax losses.
Hence, the company’s second quarter pre-tax loss was offset by 42.17% YoY from -284.9 million in 2023 to -164.7 million in 2024.
Also, cash and cash equivalents for Q2 rose by 204.00% YoY due to cash injections from shareholders.
In total, 1,788,372,094 ordinary shares opened from January 25 to February 9, 2024, aiding in the offset of pre-tax losses, as the effects of cash injection trickled down into the second quarter.
Tantalizers PLC is currently trading at N0.45 per share in the Nigerian stock market.
Also, it has been riding a strong buy trend since breaking out from lows of N0.20 in May 2023.