Tantalizers struggling to curtail losses
Tantalizers Plc, the only indigenous fast food company listed on the floor of the Nigerian Stock Exchange (NSE) has continued to struggle to curtail losses, even as the board of directors and management are making frantic efforts to stem the downturn.
A look at the company's first and second quarter un-audited results for the ongoing 2014 financial year shows that the socio-economic and political problems facing the country are having serious negative effects on the company's performance.
Unfortunately, the company has not been able to get respite regarding declining profitability, due to high cost of materials and rising operational costs arising from high interest rate, ageing restaurants assets and high cost of power generation coupled with non-availability of disposable income among targeted customers and insecurity in the country.
The company's half-year result for the period ended June 30, 2014, shows that losses increased from N286.218 million in 2013 to N316.202 million in 2014. Revenue dropped from N1.771 billion in 2013 to N1.569 billion in 2014. On its first quarter result for the period ended March 31, 2014, as the company posted N108.985 million loss, which is below N598.449 million loss recorded same period in 2013. Revenue dropped from N898.702 million in 2013 to N798.744 million in 2014. The Sun