…FX /low production fired depressed performance
Pharma-Deko Nigeria Plc has said that its low revenue and increasing operating expenses recorded in the first quarter 2017 was caused by low production and high cost of materials caused by exchange rate.
The company in its recently released first quarter 2017 result for the period ended 30 March, reflected low turnover and bloated cost of sales, and operating expenses.
Pharma- Deko Plc financial statement for the first quarter (Q1) accounting records for the period ended.
The result further showed that, Revenue recorded by the company in Q1 2017 stood at N351.342 million, against N183.505 million posted in the corresponding period of 2016.
The pharmaceutical company’s cost of sales soared to N197.197 million, from N92, 950 million in the Q1 2016, reflecting -56 per cent increase year on year.
Reflecting the high operating cost, Q1 Distribution and other expenses closed higher at N160.988 million, from N149, 550 million posted in the corresponding period in 2016, indicating -46 per cent increase.
The company said that the sale experienced in the quarter was as a result of low production caused by capacity limitation in the consumer bottling machine which the company said , currently is in the process of being replaced.
Also, the increase in the cost of sales was attributed to impact of exchange rate which caused rapid increase in cost of materials.
The company said “we are continually optimistic that once the installation of the new bottling line I s in full operation, we will be able to catch up with the revenue gap.”