Meyer Plc recorded a strong improvement in topline performance for both the three-month and twelve-month periods ended 31 December 2025.
Revenue for the full year rose to ₦4.23 billion, representing a 35.5 percent increase from ₦3.12 billion in 2024. Fourth-quarter revenue also improved materially, rising to ₦1.25 billion from ₦1.04 billion, driven by sustained demand and improved market execution in the final quarter of the year.
The consistency between quarterly and full-year growth indicates that revenue expansion was not a one-off event but a structural improvement in sales performance.
Gross Profit Expansion Outpaces Revenue Growth
Cost of sales increased by 30.6 percent year-on-year to ₦2.72 billion, growing slower than revenue. As a result, gross profit expanded sharply to ₦1.51 billion, up 45.4 percent from ₦1.04 billion in the prior year.
Gross margin improved significantly, highlighting better pricing discipline and cost containment despite inflationary pressures within the manufacturing sector.
Fourth-quarter gross profit rose to ₦428.9 million, compared to ₦264.7 million in Q4 2024, reinforcing the strength of margin expansion.
Operating Profit Strengthens Despite Rising Expenses
Selling and distribution expenses increased to ₦440.4 million for the full year, up from ₦332.4 million, reflecting higher logistics and distribution costs tied to increased volumes.
Administrative expenses also rose to ₦736.0 million, from ₦576.7 million, driven by inflationary pressures and higher operating overheads.
Despite these increases, operating profit improved significantly. Profit from operating activities for the full year rose to ₦392.0 million, representing an 87.8 percent increase from ₦208.6 million in 2024. Fourth-quarter operating profit more than doubled to ₦123.5 million, compared to ₦50.5 million in the prior year.
Finance Income Emerges as a Major Earnings Driver
Finance income surged to ₦345.3 million for the full year, compared to ₦251.5 million in 2024, reflecting higher interest income earned on substantial cash balances.
Finance costs remained negligible, resulting in net finance income of ₦345.1 million, which accounted for a significant portion of profit before tax. This highlights Meyer Plc’s strong liquidity position and conservative leverage profile.
Profit After Tax Records Strong Growth
Profit before tax increased to ₦737.1 million, up 61.1 percent from ₦457.6 million in the prior year.
After accounting for tax expenses of ₦186.7 million, profit after tax rose to ₦550.4 million, representing an 86.3 percent year-on-year increase. Fourth-quarter profit after tax more than doubled to ₦187.2 million, from ₦82.6 million in Q4 2024.
Earnings Per Share Improves Sharply
Basic and diluted earnings per share for the full year increased to 111 kobo, compared to 59 kobo in 2024. Fourth-quarter EPS improved to 40 kobo, up from 17 kobo in the corresponding period of the previous year.
The EPS growth closely mirrors profit expansion, indicating limited dilution and strong earnings quality.
Balance Sheet Strengthens on Cash and Retained Earnings Growth
Total assets increased to ₦3.44 billion from ₦2.84 billion in 2024, driven primarily by higher cash balances and inventory expansion to support increased operations.
Cash and cash equivalents rose to ₦2.05 billion, up 30.1 percent, reinforcing the company’s strong liquidity position. Trade receivables declined year-on-year, signalling improved collections.
Net assets rose to ₦2.23 billion, compared to ₦1.83 billion, supported by retained earnings growth to ₦1.93 billion. Total equity increased by 21.9 percent, strengthening the company’s capital base.
Borrowings remained minimal, underscoring a low-leverage balance sheet and reduced financial risk.
Investors King Takeaway
Meyer Plc delivered a solid FY 2025 performance, marked by strong revenue growth, expanding margins, rising operating profit, and a very strong liquidity position.
The sharp rise in finance income highlights efficient cash deployment, while limited borrowings reduce balance sheet risk.
With improving earnings per share, rising retained earnings, and a strengthened balance sheet, Meyer Plc enters the new financial year in a more resilient position, though rising operating costs remain a key area to monitor going forward.
