Academy Press 2026 Profit Plunges 78% to N253m, Recommends 10kobo Dividend
Academy Press Plc posted a sharp drop in earnings for the year ended March 2026, with pre-tax profit falling 78.4% to N253.45 million from N1.17 billion a year earlier. Profit after tax slipped 65% to about N253 million and earnings per share dropped 60.2% to N0.317. Despite the downturn, the board recommended a dividend of 10 kobo per share, subject to shareholder approval, which is a third lower than the 15 kobo paid for 2025.
Revenue slipped modestly to N4.41 billion (-3.8%), while gross profit fell 8.7% to N1.26 billion, squeezing the gross margin from 30.1% to 28.5%. Operating profit was hit harder, dropping 73.7% to N347.43 million as selling and distribution costs jumped to N356.9 million, administrative expenses rose to N882.7 million and other operating income collapsed from N997 million to N352 million. An impairment loss of N23.2 million on financial assets reversed a prior-year gain. On the balance sheet, total assets fell 12.7% to N3.31 billion, inventories plunged to N473.8 million and cash slipped to N612.4 million. Operating cash flow, however, surged to N757.7 million from N122.0 million, driven by inventory and receivable reductions, while investing activities consumed N793.4 million mostly on property, plant and equipment and financing activities posted a net outflow of N225.1 million. The share price opened the year at N7.30 and had slipped to N6.70 by June, a 27% monthly loss and 12.3% year-to-date decline.
For investors, the stark profit decline signals worsening operating leverage despite cost-cutting in finance costs, while the sharp cash-flow improvement suggests working-capital gains. The recommended dividend offers a modest return but is markedly lower than last year. Should you hold, buy more, or look elsewhere given the earnings pressure and capital-intensive investing cycle?