New Vision Printing and Publishing Company Ltd has registered a 99.7% drop in net profit for the year ended 30th June 2017 compared to the same period a year earlier.
The company’s net profit for the first six months of 2017 were recorded at Shs14.6m, down from Shs4.9bn recorded in the year ended 30th June 2016.
According to the company’s financials released on Friday, the company registered a decline of 7.12% in turnover (revenue) to Shs86 billion in the first six months of 2017, down from Shs92.6 billion in the last financial year.
Due to this dismal performance, the company didn’t recommend any dividend.
New Vision that is headed by Robert Kabushenga as CEO is listed on the Uganda Securities Exchange (USE).
The results indicate that commercial printing revenue registered the highest decline of 22% to Shs9.3bn in 2017, down from Shs12.07bn in the period under review.
This was followed by Newspaper copy sales that dropped by 8.6%, while Print Advertising dropped by 8%.
However, events greatly grew by 46%. Cost of sales decreased by 6% to Shs64.5bn in 2016, from Shs68.6bn.
“The decrease was directly related to fall in turnover resulting in reduction of imported raw material inputs, sales commission, electronic media content and other revenue driven costs,” the company said in its financial statement.
While administrative expenses were similar for both years, the company’s operating expenses were up by 108% to Shs6.2 billion from Shs2.98 billion the previous year.
“Operating expenses were adversely affected by huge impairment of trade receivables provided in this year at Shs.3.1 billion,” the company said, adding:
“We have invested heavily in Commercial printing machinery with a plan to grow Commercial printing revenues significantly due to the high market potential in and outside Uganda including label printing. We also plan to expand television content production as a revenue stream.”