Livestock Feeds Plc 2016 Financial Summary

HISTORY

Livestock Feeds was established in 1963 by Pfizer as a subsidiary to the pharmaceutical business which had been introduced to Nigeria few years earlier. Following importation of exotic milking cows and hybrid chickens into the country by Germans, Dutch and later Americans, the need to provide health and nutritional products led to creating Animal Health division and then the Feed division. The first mill of 5MT/hr was installed at Ikeja in 1963, followed by Aba 1964 and Kaduna in 1965 with 4MT and 3.5MT per hour capacity respectively. Accelerated growth in urban and sub-urban  population and demand for poultry meat and egg impacted positively on the feed business leading to phenomenal growth in Livestock Feeds business nationally. The impressive performance propelled upgrade of the milling output to 10MT/hr automatic machines at Ikeja, Aba and then Benin between 1983 and 1985. Kaduna was given a 6MT\hr back-up mill. The era of boom also witnessed the establishment of Franchise business marketing system. With installed capacity of 40MT\hr single shift and network of 12 franchise millers, Livestock Feeds was the dominant brand and benchmark in the industry. At peak of business the company had 55% of the market share.

Current Major Shareholders:

UACN	51.01%
First Capital Trust ltd	7.24%
Cashcraft Asset Management Ltd	5.15%

12 Months Report LIVESTOCK FEEDS PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	11,067,161	8,963,293	23%	December
Profit/Loss  before taxation	223,990	300,115	-25%
Profit for the period	152,281	187,917	-19%
Issued Shares (Units)	1,999,999,418	1,999,999,418
Basic Earnings Per Shares (Kobo)	7.61	9.40	-19%
Last total dividend paid (Kobo)	0.00	0.00

Quarter on Quarter performance

Revenue                                                                   PAT

N'000                                                                       N'000

Q1: #2,091,393                                                      Q1: #2,327

Q2: #2,482,794                                                      Q2: #46,380

Q3: #3,059,621                                                      Q3: #58,637

Q4: #3,433,353                                                      Q4: #44,937


Livestock Feeds Plc maintained an average of #2,766,790 in terms of revenue in 2016 and #38,070 in terms of Profit after Tax (PAT).

The Company produces animal feeds which is 100% of its turnover. Other products include Fish feed and also an enzyme (Natuzyme) which is bought from other Companies for marketing and sales.

With the policy of the current government on Agriculture, the company should be able to do better going forward. Part of what affected the feeds industry was the shortage of forex because some of the raw materials for the feeds are imported.

For two consecutive years now, the company had not declared any dividend for its shareholders.

The Stock closed at 68k on 27th March 2017.