11 PLC Q3-2020 financials shows an 18.91% decline in gross revenue from N141.51bn recorded in Q3-2019 to N114.75 in the current period on the back of the global oil crisis triggered by COVID-19 pandemic. Cost of sales however declined by 17.87% indicating a 1.28% increase in cost margin. The decline in revenue and decreased cost management effectiveness lead to a 30.69% reduction in gross profit. Specifically, 11 PLC gross profit reduced from N11.48bn to N7.96bn following a movement in cost of sales from N130.03bn to N106.79bn.
Higher OPEX weigh on Bottom Line Performance
11 PLC operating profit declined by 33.38% from N9.54bn to N6.35bn as a result of lower gross profit and higher operating expenses in the current period. Consequently, Profit before tax declined by 34.73% to N6.14bn in addition to a 338% increase in finance income. In summary, Profit after tax and EPS waned by 35.01% and 35.02% respectively with a 19.86% reduction in Net profit margin. Notably, Profit after tax reduced from N6.34bn to N4.12bn while EPS declined from N17.59bn to N 11.43bn in the current period.
