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Tantalizers Returns To Profit With N450m



Tantalizers Plc, the only fast-food business listed on the Nigerian bourse posted its first profit in over five, reporting a profit before tax of N450 million for the financial year ended December 31, 2017.

The company’s result released on the Nigerian Stock Exchange (NSE) showed that its profit before tax grew to N450.62 million as against a loss before tax of N11.01 billion in 2016, profit after tax stood at N443.37 million from a loss after tax of N1.02 billion, while earnings per share grew to 14 kobo from a loss of 32 kobo in 2016.

The company’s revenue increased from N3.6 billion in 2016 to N3.7 billion in 2017. Cost of sales went down to N1.18 billion from N1.27 billion, leading to decline in its gross profit to N567.95 million as against N674.69 million.

Tantalizers loan book reduced by about N1.1 billion in the period under review. The company reported that it repaid loans of about N862 million and serviced the interest of about N269 million only. The company also secured a loan write back amounting to N600 million.

Tantalizers has revealed that it had commenced corporate restructuring of its existing debts and cost structure while looking to raise equity.

It expressed business optimism regarding the efficiency of its on-going strategic initiatives aimed at reversing the recent declining profitability in the business. The initiatives which commenced in the last two years are designed to totally restructure the business, stem the declining performance and boost shareholders’ funds.

Analysts from the stocks market said with revenues still stunted and competition seemingly on the increase, it appears Tantalizers may continue to sell down assets in a bid to fix its balance sheet, saying raising capital is also inevitable and this will likely only be achieved via a strategic investor or a takeover of the company.

Tantalizer was officially listed on the Nigerian bourse on June 23, 2008 at N3.67 kobo. The company’s stock is now trading at 37 kobo as at April 6, 2018. The firm had rewarded both the shareholders and investors with dividends only in 2009, 2011 and 2012.