Tantalizers Plc has recorded profit after of N101.87 million fro the year ended 31st December, 2011, representing 66 per cent growth over N61.35 million recorded in 2010.
This is even as shareholders approved the distribution of N64 million, which translates to 2kobo per share dividends for the stated period.
Addressing shareholders at the 14th annual general meeting in Lagos, the Chairman, Dr Jaiye Oyedotun, announced that stiffing economic situation, declining consumer purchasing power and inability to open new outlets as planned coupled with increasing completion resulted in a lower revenue.
Oyedotun explained that turnover declined of six per cent to 4.60 billion from N4.98 billion in 2010 was also partly as a result of non-release of the International Finance Corporation’s $7 million loans which impinged on its performance thus hindering some of its expansion plans within the period.
“This no doubt, affected our 2011 performance as our plans for new outlets opening were hinged on the IFC loans. The $7 million loan is needed to drive expansion, renovation of outlets, implementation of the Enterprise Resource Planning, ERP, project and augmentation of working capital.
He, however, stated that despite the difficult operating environment in the year and delay in securing the IFC loans, it was able to open five outlets within the year.
Continuing, he said, “I am happy to inform you that the board’s efforts to secure the IFC funds are now yielding results. IFC has agreed to release the money in tranches based on the number of properties perfected. The first tranche of $2.5 million is about to be released. We are hoping for the conclusion of the perfection process, and eventual release of the balance before the end of the year.
He further explained that the company has been able to integrate all its activities from the warehouses, to the stores with investment made on Microsoft Navision ERP software, adding that the integration has improved the company’s operational efficiency, as well as data capturing and handling.
Commenting on the financial performance, Mr Sotunde Sojeju, a front-line shareholder, said the result was commendable considering all the anomalies confronting businesses in Nigeria.
He said, “You have tried to have delivered such a wonderful result. Insecurity is on the rise. There is high cost of maintaining and running companies; and due to inflation, consumers no longer have spendable income, they prefer to patronise road side food vendors. Considering all these, I think you have tried. Some companies much bigger than this cannot post as good result as this.”
Sopeju also commended the management for establishing its presence across the nation, through aggressive branch network expansion.