Two months ago, paint manufacturer, Meyer Plc, had announced that its Managing Director, Devashish Nath, left the company, while Jane Ijegbulem, the Company Secretary, is also on her way out of the paints manufacturer. Their exit from Meyer Plc came amidst a decline in Meyer Plc's revenue and gross profit in Q1 2020.
In a statement released by the company and seen by AllNews, it was stated that Nath's exit from the company was effective on May 13, 2020. He was replaced by Rotimi Alashe, who was the Chief Financial Officer of Meyer Plc before his recent appointment. Alashe became the acting MD on May 14.
While Ijegbulem exited the company on May 27, 2020, and was replaced by Marriot Solicitors the next day, on May 28, 2020. Both Nath and Ijegbulem exit follows the poor financial result of Meyer Plc in the first quarter of this year. The revenue, as well as gross profit, had dropped significantly.
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Despite their exit, the revenue and profit haven't changed for good as Meyer's earnings keep declining even with change of Manging Director - the company is still struggling to keep its revenue from crashing under Alashe. The first half of this year has been a disappointing outing for Meyer financially, and this might affect shareholders' and investors' interest in the company's stock.
Meyer Plc recorded a significant drop as its revenue for the second quarter of 2020 was far below that of its corresponding period last year. According to the recently released unaudited financial statement for Q2 2020, AllNews confirmed that revenue crashed by half of the N604.4 million recorded in Q2 2019.
It was disclosed that Meyer Plc could only generate N393.9 million in revenue this year's second quarter; this is a huge decline when compared to the Q2 2019 N604.4 million revenue. Meanwhile, its cost of sales reached N252.6 million in Q2 this year, less than the N391.2 million it cost for production last year Q2.
The company couldn't also stop the gross profit from dropping, as it declined from N213.1 million in Q2 last year to clock N141.1 million in 2020 Q2. This is despite Meyer Plc reducing its selling and distribution expenses to N10.8 million in Q2 2020 from N19.3 million it spent in the corresponding period of 2019.
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Meyer Plc recorded loss in its profit before tax, as its loss increased to N59.2 million this year's second quarter, reflecting a huge loss when compared to the N27.3 million it recorded in the corresponding period of last year. Also, the company reported loss in its Profit for the period with N60.7 million reported in Q2 2020, while N29.5 million was disclosed for last year's Q2.
Meyer Plc's revenue fell to N264 million in the first quarter of 2020, representing a huge drop when compared to the N327 million generated in the corresponding period of 2019. The gross profit of Meyer Plc also followed the downward path after recording N97 million in Q1 2020, failing to surpass the N115 million recorded in the corresponding period of 2019.
The drop in gross profit had occurred despite the company reducing its cost of sales - which represents the amount spent on manufacturing products and distributing to its customers. The cost of sales dropped to N166.6 million in Q1 2020. The cost of sales was below that of the corresponding period of 2019 which was N212.1 million.