Tripple Gee’s loss reports a significant fall of N1.39bn for FY2025, a downturn from the previous year’s profit

Tripple Gee’s loss a substantial fall after tax of N1.39 billion for the financial year ended 31st March 2025.

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This represents a significant downturn from the N7 million profit the company recorded in the previous year.

The dramatic shift underscores a challenging period for the firm, highlighting a stark financial reversal in its performance.

This considerable Tripple Gee loss has raised concerns among investors and market observers alike.

According to the recently audited financial statements filed on the Nigerian Exchange, the company’s revenue for the year experienced a notable drop of 17.3 per cent.

It fell from N2.20 billion in 2024 to N1.82 billion in 2025.

This sharp decline in gross earnings, combined with a significant escalation in both operational and finance costs, collectively contributed to the firm’s negative bottom line, indicating severe operational pressures.

The company’s cost of sales also rose considerably, increasing from N1.39 billion in 2024 to N1.74 billion in 2025.

This increase directly contributed to a drastic reduction in gross profit, which plummeted to N86.5 million, a stark contrast to the N810.6 million reported in the prior financial year.

Such figures reveal a severe squeeze on the company’s core profitability from its direct operations.

Further compounding the financial woes, administrative and distribution expenses significantly increased.

These costs rose to N889.15 million, up from N565.13 million, consequently pushing the overall operating result into a substantial loss of N802.6 million.

The escalating expenditure across these critical areas demonstrates mounting pressure on the company’s cost management capabilities.

Tripple Gee also encountered a substantial rise in finance costs during the period. These costs more than doubled, surging to N573.75 million from N227.46 million recorded in 2024.

This dramatic increase in borrowing expenses placed an additional heavy burden on the company’s financial health, directly impacting its ability to generate any positive returns for its shareholders.

As a direct consequence of these financial pressures, the company posted a pre tax loss of N1.38 billion. This starkly contrasts with the modest pre tax profit of N18 million achieved in the previous year.

After accounting for a tax charge of N9.1 million, the final net stood at a staggering N1.39 billion, marking a profound deterioration in its financial standing.

The reported loss translated into negative earnings per share of 140.8 kobo. This represents a steep fall from the positive 1.41 kobo earnings per share recorded in 2024.

In addition, Tripple Gee reported another comprehensive loss of N8.45 million, pushing the total comprehensive loss for the financial year to N1.39 billion, reflecting broader negative movements in its accounts.

An in depth analysis of the company’s statement of financial position reveals a significantly weakened balance sheet.

Total assets experienced a notable decline, falling from N6.34 billion in 2024 to N5.48 billion in 2025.

This reduction in assets indicates a shrinking operational base and diminished resource capacity for future activities.

Delving deeper into the asset structure, the company’s non current assets dropped from N3.80 billion to N3.37 billion.

Concurrently, current assets also saw a decline, decreasing to N2.10 billion from N2.55 billion.

These reductions across both long term and short term asset categories further underscore the company’s contracting financial position and reduced liquidity.

Meanwhile, the company’s liabilities increased, adding further strain to its balance sheet. Long term loans rose to N3.29 billion from N2.92 billion.

Short term borrowings also climbed significantly, reaching N1.28 billion from N976.63 million in the prior year.

Current liabilities, encompassing trade payables and provisions, stood at N2.77 billion, a marginal increase from N2.61 billion, contributing to the overall loss.

As of the year end, a critical development emerged: the company’s equity position turned negative.

Total equity stood at -N588.3 million, a dramatic reversal from a positive N805.6 million in 2024.

This negative equity position is a serious concern, as it directly highlights a significant erosion of shareholders’ funds and signals financial distress.

The company’s financial downturn can be attributed to several macroeconomic headwinds currently affecting businesses in Nigeria.

High inflation rates continue to increase operational costs, while foreign exchange rate volatility impacts the cost of imported raw materials.

These external pressures exacerbate internal challenges, making it difficult to maintain profitability and avoid a loss.

The drastic increase in finance costs suggests either a heavier reliance on borrowed funds or an exposure to higher interest rates within the financial market.

This burden on debt servicing significantly eats into the company’s revenue, making it difficult to achieve a positive bottom line.

Such a scenario underscores the prevailing tough economic climate for Nigerian businesses.

The implications of a negative equity position are profound.

It affects the company’s ability to attract new investment, secure additional loans, and potentially even raises questions about its long term viability without a substantial financial restructuring.

This situation demands urgent and strategic interventions from the company’s management to prevent further deterioration and reverse the loss.

This recent financial performance is expected to have a notable impact on investor confidence and the company’s stock valuation on the Nigerian Exchange.

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Shareholders will be keenly observing the company’s next steps to address these significant financial challenges and restore profitability. The severity of the Tripple Gee loss necessitates a robust recovery plan.