Last Update 05 Nov 25
WaneInvestmentHouse made no meaningful changes to valuation assumptions.
Tantalizers Plc reported a modest turnaround in its 9-month 2025 performance, delivering a profit after tax of ₦41.1m, compared to a loss of ₦265.6m recorded in FY-2024. The earnings recovery reflects improved operational discipline, reduced finance costs, and recapitalization efforts to strengthen the balance sheet.
Performance Highlights (9M-2025 vs FY-2024)
Key Metrics 9M-2025 FY-2024
System Revenue ₦2.05bn ₦2.90bn
Tantalizers Net Revenue ₦913.3m ₦1.20bn
Gross Profit ₦310.5m ₦425.2m
Operating Profit (₦189k) (₦189.9m)
Finance Costs (Net) ₦41.3m (₦69.7m)
Profit/(Loss) Before Tax ₦41.1m (₦259.6m)
Profit After Tax ₦41.1m (₦265.6m)
EPS (Kobo) 1k (5k)
Income Statement Commentary
- Revenue declined due to subdued consumer spending and footprint rationalization, reflecting weak macroeconomic conditions.
- Gross margin held, though lower sales volumes weighed on topline.
- Significant improvement in operating performance as operating loss narrowed to almost breakeven, supported by cost optimization.
- Positive net finance income (₦41.3m) vs prior finance cost (₦69.7m) suggests lower borrowing burden/written-back liabilities.
- Result: Return to profitability, albeit marginal, indicating early signs of operational recovery.
Balance Sheet Overview
Assets Sep-25 Dec-24 Trend
Total Assets ₦12.29bn ₦2.95bn 316%
Key Notes:
- Major rise in PPE and revaluation reserve, suggesting asset revaluation exercise to improve equity and solvency.
- Working capital strengthened with higher cash (₦687m vs ₦237m) and improved receivables.
Equity & Liabilities
Sep-25 Dec-24 Trend
Total Equity ₦4.59bn
₦1.17bn 293%
Borrowings & Leases ₦6.23bn+ ~₦1.77bn +400%
Balance Sheet Commentary
- Significant recapitalization and revaluation drove equity increase.
- Deposit for shares (₦640m) and sharp rise in reserves hint future equity issuance/dilution.
- Lease and borrowing obligations remain high; deleveraging still necessary.
- Liquidity position improved, but leverage pressure persists.
Outlook & Analyst View
Tantalizers’ 9M-2025 performance reflects early stability and strategic restructuring progress. While revenue weakness remains a concern, the return to profitability, balance-sheet strengthening, and reduced finance burden highlight operational discipline.
Key positives:
- Profitability restored
- Improved liquidity
- Equity boost from revaluation & capital inflows
- Cost control delivering operational leverage
Key risks:
- High lease/loan liabilities
- Sustained inflation & weak consumer spending
- Execution risk on turnaround strategy
- Potential dilution from share deposits
Conclusion
Tantalizers appears to be turning a corner, moving from prolonged losses to a fragile profit base. Management’s ongoing restructuring and capital injection are stabilizing the business. Sustaining profitability will depend on footprint optimization, cost control, debt servicing, and revenue recovery.
Recommendation stance: Monitoring – Early recovery signs, but sustained earnings needed before valuation re-rating.
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Disclaimer
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