Livestock Feed Plc has reported a pre-tax profit of N681.8 million for the fourth quarter of 2024, as detailed in its financial statements released on the Nigerian Exchange (NGX) on January 27, 2025.
This figure represents a year-over-year recovery of 445.37% compared to the same quarter in 2023, resulting in a total pre-tax profit of N2.7 billion for the fiscal year 2024, a significant improvement from the pre-tax loss of N126.7 million recorded in fiscal year 2023.
In terms of revenue, the company reported a 114.99% increase for Q4 2024, amounting to N13 billion, compared to N6 billion for the corresponding period in the previous year.
For the entire fiscal year, total revenue grew by 104.17%, from N20.4 billion in fiscal year 2023 to N41.6 billion in fiscal year 2024.
Additionally, Livestock Feed Plc’s ‘other operating income’ for Q4 rose to N393.9 million, up from N24.9 million last year. For the entire fiscal year, this totaled N452.8 million, marking a 514.54% increase.
Key Highlights (2024 vs 2023 FY)
- Revenue: N41.6 billion, +104.17% YoY
- Cost of Sales: N35.2 billion, +84.02% YoY
- Gross Profit: N6.4 billion, +407.39% YoY
- Other Operating Income: N452.8 million, +514.54% YoY
- Administrative Expenses: N1.8 billion, +170.46% YoY
- Operating Profit: N4.6 billion, +889.51% YoY
- Finance Income: N145.1 million, +11,566.72% YoY
- Finance Costs: N2 billion, +234.58% YoY
- Pre-tax Profit: N2.7 billion, -2,304.71% YoY
- Total Assets: N23.1 billion, +72.92% YoY
Commentary
A cursory look at the company’s earnings report reveals notable growth in revenue and income from its core operations.
For the full year 2024, revenue increased by 104.17% year-over-year, reaching N41.6 billion, up from N20.4 billion the previous year.
- The revenue breakdown shows that livestock feed sales from the Ikeja mill accounted for 43.1%, totaling N18 billion, followed closely by the Aba facility at 39.2% with N16.3 billion.
- Northern operations contributed 11.8%, while Onitsha represented 5.7%.
However, the cost of sales rose significantly by 84.02%, reaching N35.2 billion, largely driven by changes in inventories.
- Despite increased costs, gross profit rose by 407.39%, reaching N6.4 billion compared to N1.2 billion in 2023.
- Additionally, other operating income grew by 514.54%, climbing from N73.6 million to N452.8 million, mainly due to profits from raw material sales, which made up 78.1% of the total.
Administrative expenses also surged by 170.46% to N1.8 billion, with salaries and management fees being significant contributors.
- Livestock Feed’s operating income reached N4.6 billion, reflecting an increase of 889.51% from the previous year’s N469.9 million.
- Finance income improved to N145.1 million from N1.2 million, yet finance costs also rose sharply by 234.58% to N2 billion, with interest on loans making up 75.4% of this total.
Ultimately, Livestock Feeds managed to recover from a pre-tax loss of N126.7 million in FY 2023, achieving a pre-tax profit of N2.7 billion in 2024.
Asset position
In 2024, the company’s total assets surged to N23.1 billion, marking a substantial jump from N13.3 billion in 2023.
Non-current assets increased to N2 billion, primarily fueled by a significant rise in property, plant, and equipment, which totaled N1.7 billion.
- Within this category, capital work in progress comprised 54.7%, while machinery and equipment accounted for 26.8%.
Current assets also experienced impressive growth, reaching N21 billion, largely driven by a considerable uptick in inventories and cash reserves.
- Notably, raw materials constituted a remarkable 95% of the total inventory.
