Tripple Gee Posts ₦1.39 Billion Loss in Q1 2025 as Margins Collapse and Costs Surge

Tripple Gee Posts ₦1.39 Billion Loss in Q1 2025 as Margins Collapse and Costs Surge

Tripple Gee & Company Plc ended its financial year on March 31, 2025, with a devastating turnaround in performance, plunging from a modest profit of ₦7 million in FY 2024 to a loss after tax of ₦1.39 billion. The result reflects a year of margin deterioration, surging finance costs, and intense cost pressures, putting significant strain on the company's profitability and equity position.

🔑 Key Financial Highlights (FY 2025 vs FY 2024)

Metric FY 2025 FY 2024 % Change Revenue ₦1.82 billion ₦2.20 billion ▼ 17.3% Cost of Sales ₦1.74 billion ₦1.39 billion ▲ 24.7% Gross Profit ₦86.5 million ₦810.6 million ▼ 89.3% Operating Profit ₦(802.6) million ₦245.5 million ▼ 427% Finance Costs ₦573.8 million ₦227.5 million ▲ 152.2% Net Profit/Loss ₦(1.39) billion ₦7 million ▼ 20,000% EPS (Kobo) –140.81 +1.41 ▼ Over 100x

⚠️ Breakdown and Analysis

📉 Revenue Drop and Gross Margin Erosion

• Revenue declined by ₦380 million, pointing to softened demand or operational constraints.
• More alarming was the Cost of Sales surge by 25%, shrinking gross profit margin to just 4.7%, compared to 36.8% in FY 2024.

💰 Exploding Operating and Finance Costs

• Distribution and Admin Expenses jumped 57% YoY to ₦889 million.
• Operating loss of ₦802.6 million marks a sharp reversal from ₦245 million profit last year.
• Finance costs more than doubled to ₦574 million, likely reflecting increased debt burden or higher interest rates.

📉 Comprehensive Loss

• Total comprehensive loss reached ₦1.39 billion, with an added ₦8.45 million in other losses, likely from asset revaluation or forex-related adjustments.

🧾 Balance Sheet Snapshot

Item FY 2025 FY 2024 Total Assets ₦5.48 billion ₦6.34 billion Total Equity Wiped out Data not disclosed Long-Term Loans ₦3.29 billion ₦2.92 billion Short-Term Borrowings ₦1.28 billion ₦976 million Cash & Cash Equivalent ₦5.98 million ₦1.76 million

• Cash reserves are critically low, with less than ₦6 million left at year-end.
• Borrowings are elevated, both long- and short-term, suggesting liquidity pressure and heavy reliance on debt financing.

🧠 Conclusion: A Worrying Trend That Requires Urgent Action

Tripple Gee’s FY 2025 performance is one of sharp decline, characterized by:

• Falling revenues,
• Uncontained costs,
• Soaring finance expenses, and
• A crippling erosion of shareholder value.

The company is clearly in financial distress, with potential implications for solvency if the current trajectory continues. Strategic cost rationalization, capital restructuring, and renewed top-line growth must be prioritized to avoid further deterioration.

Investor Takeaway: This year’s results highlight a critical turning point for Tripple Gee. Stakeholders will be watching closely in FY 2026 for signs of turnaround or deeper restructuring moves to restore stability.