Learn Africa plc, an education solutions business in Nigeria, has announced a net profit of N10.1 million for the third quarter (Q3) period ended September 30, 2014, indicating an increase of 107 percent over the N132.3 million loss recorded in the corresponding period of 2013.
The gross profit margin of the firm rose from 50.85 percent in Q3 2013 to 62 percent in Q3 2014, representing over 10 percent growth. The marginal increase in operational expenses is attributable to the extensive and intensive promotional activities that were carried out by the firm’s sales team across Nigeria with a view to expanding its market coverage.
The main business of Learn Africa Plc is the publication and marketing of textbooks for the entire gamut of the educational system – nursery, primary, secondary and tertiary. The company has equally distinguished itself in the marketing of reference, professional and general reading materials. Today, Learn Africa Plc is Nigeria’s largest educational publisher with the widest range of books/educational resources and a very expansive distribution network.
Speaking with BusinessDay, Managing Director, Olusegun Oladipo, said, “We are excited that our market development strategy is beginning to yield desired results and this is evident in the growth of our turnover from N1,044,160 in the third quarter of 2013, to N1,418,778 in 2014.”
According to him, it is important to note that the increase in turnover was achieved mainly through open market sales to schools, booksellers and other outlets. “Our broad range of excellent titles are attracting significant patronage from discerning customers in all segments of our market due to the adequate contents, impressive compliance with current requirements of the curricula, high quality production, reader friendly layout and widespread availability. These have lead to an increase in the level of prescriptions of our titles by several state governments and the administrators of key private primary and secondary schools across Nigeria.
“We hasten to add that our improved performance is indicative of our strong commitment to the interests of our customers and shareholders despite the challenging business environment that is characterized by declining disposable income of an average family, high level of book piracy, poor reading culture, epileptic power supply, bad road network, high cost of funds and declining sales in the North-East as a result of insurgency.
“Nevertheless, we would intensify our efforts at increasing sales and minimising overheads so as to generate better returns on investment. We feel confident that the end year result for 2014 will represent a very remarkable improvement on last year’s report. Our optimism is premised on the excellent quality of our products, our customer-oriented activities, the wide sales and distribution network, competitive prices and greater operational efficiencies. All these have helped to consolidate our position as the leading learning resource company in Nigeria,” he said.