Dipo Olowookere
By Dipo Olowookere
The profit after tax (PAT) of Tantalizers Plc in the financial year ended December 31, 2019 reduced by 74.3 percent, the earnings of the company revealed on Thursday.
The firm, which is one of the leading fast-food players in Nigeria, said in the period under review, its net profit reduced to N22.2 million from N86.3 million achieved in the 2018 financial year.
Also, the profit before tax went down in FY 2019 to N33.4 million from N96.0 million. Last year, the company paid N11.3 million as tax to the appropriate authorities, higher than N9.8 million paid two years ago, while the earnings per share reduced to one kobo from 3 kobo.
According to the results released by the company, the system revenue dropped to N2.8 billion from N3.5 billion. This comprises mainly N1.16 billion from company owned outlet sales and N1.66 billion generated from franchisees owned outlet sales.
In addition, the cost of sales reduced to N729.7 million from N895.7 million, while the gross profit went down to N534.9 million from N629.4 million, with other income going down to N268.3 million from N421.4 million.
Funds raised from other income included N109.9 million from rent versus N99.7 million in 2018, N17.8 million from advertisement (versus N17.0 million 2018), N111.1 million from franchise (N162.7 million) and N29.6 million from profit on disposal of property, plant and equipment (versus N106.2 million in 2018).
Tantalizers recorded N20.8 million as distribution costs against N38.4 million in 2018, administrative expenses reduced to N940.9 million from N1.1 billion, while operating profit dropped to N127.1 million from N262.9 million.
Business Post reports that while the finance income was N776,712 in the period under review, the finance cost reduced to N94.4 million from N166.9 million. The decrease in the finance costs for the 2019 fiscal year was mainly due to the lower interest on term loans (N88.2 million versus N159.5 million in 2018). Other bank charges also contributed to it as it went down to N6.2 million from N7.4 million.
