Tantalizers reports N57.6m loss in H1 2020
By Kayode Tokede
Despite reporting increase in revenue, Tantalizers Plc reported N57.6million loss in half year ended June 30, 2021 as against a loss of N99.56million reported in prior half year results.
The fast food restaurant company also reported N57.5billion loss in H1 2021 from N135.11million reported in H1 2020.
Tantalizers, however, grew revenue by 42 per cent to N615.78million in H1 2021 from N433.83million reported in H1 2020.
The company’s profit & loss figures that hike in cost of sales and administrative expenses dragged profit to loss in the period under review.
The fast food restaurant company on the Nigerian Exchange Limited (NGX) on Monday stated that the non-current secured loans was restructured and due year 2020.
Further checks revealed that the Tantalizers in its unaudited half year ended June 30, 2021 reported N439.9million borrowing from Ecobank Plc as against N460.34million reported in full year ended December 31, 2020.
As cost of sales closed H1 2021 at N385.42million in H1 2021 from N233.16million in H1 2020, while administrative expenses rose by 14.5 per cent to N462.12million in H1 2021 rom N403.46million in H1 2020.
Consequently, cost of sales/revenue closed H1 2021 at 63per cent from 53.7per cent reported in H1 2020.
In the past 20 years since the company’s incorporation, a lot has happened. There have been meaningful expansion, in terms of the number of new outlets opened.
However, the small-cap stock, with market capitalisation valued at just N642.33million and Shares Outstanding of 3,211,627,907.00 has remained flat at N0.20.
Capital market analysts have expressed that competition in the sector and macro economy challenges is impacting negatively on the company’s growth.
According to them, the Nigerian fast food market is saturated with competition.
A research by the Oxford Business Group found that there are over 800 quick service restaurants across Nigeria.
Tantalizers is in the same league with fast food restaurants such as Mr Biggs, Tasty Fried Chicken, Chicken Republic, Mama Cass, Sweet Sensation, Tastee, The Place, among others.
The company had announced N422.05million loss in 2020 as against a N22.17million profit reported in 2019.
However, the company consecutively ran at a loss between 2013 and 2016, until 2017 when it recorded a profit after tax of N443.3 million.
Sadly enough, the company’s unaudited third quarter 2018 result shows that it ran at a loss of N213.5 million compared to a profit after tax of N760 million recorded for the same period in 2017.
