Meyer returns to profitability despite revenue decline

Meyer Plc, a paint manufacturing company, has reported a profit after tax of N1.12 billion for the financial year 2020, compared with a loss after tax of N13.59 million in the previous year.

The company posted a profit before tax of N1.64 billion last year, compared with a loss after tax of N7.18 million in 2019, according to its audited financial statements obtained by Markets Reporters.

Its revenue, however, fell to N827.59 million from N1.11 billion.

The company said amid the COVID-19 pandemic, access to foreign exchange for importation of raw materials became difficult.

“Another major challenge faced was the partial closure or closure of key markets and lack of patronage at the make-shift markets opened by some state governments,” it said.

Meyer said companies in the sector recorded reduction in revenue which affected the results for the year 2020, adding that this had greatly impacted on the total equity of most companies.

“However, the management of Meyer Plc managed to keep their factories open and operational despite the challenges while keeping staff safe and motivated by working together to put in place and adhere to the recommended COVID-19 preventive measures,” it said.

“The management, therefore, is confident that the company will continue as a going concern with increasing turnover and profitability,” Meyer added.