Livestock Feeds Posts N121m Loss in HY 2017

By Modupe Gbadeyanka

One of the latest quoted companies on the Nigerian Stock Exchange (NSE) to release its financial statements for the period ended June 30, 2017, Livestock Feeds Plc, has declared a loss.

In the half year financial results released today, the firm declared a loss of N121 million in the first six months of 2017.

This occurred despite the slight increase in its gross profit in the period under review when compared with last year’s results.

Exactly a year ago, the company gross profit stood at N406.5 million, but it appreciated to N592.8 million this time around.

Also, Livestock Feeds raked N5.84 billion as total revenue as at June 30, 2017, in contrast to N4.57 billion.

The firm said during the period, it fully repaid the N1.8 billion loan it obtained in January 2016 at an interest of 7 percent for one year under the Commercial Agriculture Credit Scheme from Central Bank of Nigeria (CBN) through IBTC Bank.

It explained that repayment was by refinancing arrangement with the bank at the rate of 21.5 percent p.a for 90days pending the renewal of CACS by Central bank of Nigeria but this has been fully settled as at June 30, 2017.

The application submitted in January 2017 for renewal of this facility is yet to be approved by Central bank of Nigeria as at this date.

Livestock Feeds noted that the renewal of N500 million term loan and N500 million overdraft facilities were approved by Zenith Bank Plc for the company to finance working capital requirements with respect to production of animal feeds and to finance bulk purchase and stock piling of grains during the harvest season at the rate of 23 percent p.a and both facilities were utilised in the 1st quarter of the year.

However the sum of N352 million short term loan is still outstanding while the sum N448.5 million overdraft was utilised as June 30, 2017.

It further disclosed that First Bank of Nigeria Plc also approved a short term facility of N1 billion at the rate of 19.25 percent for 90 days for the procurement of grains but only the sum of N985 million was utilised by the company as at June 30, 2017, while the sum of N300 million overdraft was approved by GTBank Plc to augment the working capital of the company at the rate of 23 percent p.a and the sum of N288 million was utilised as at June 30, 2017.

In addition, the sum of N1.607 billion and N100 million term loans were received from the parent company UACN Plc and UAC Foods Limited at the rate of 15.5 percent to boost the working capital of the firm and specifically for the stockpiling of materials during the harvesting season in the last quarter of the year 2016.

The company also received additional N150 million from UAC Foods but at 18 percent p.a for the same purpose in the current year.

The sum of N1,700,573,994 and N255,327,397 is payable to UACN and UAC Foods Limited as at June 30, 2017 respectively.