Revenue rises 14% to N3.895bn as publisher battles high energy, transport and financing costs.
University Press Plc recorded a profit after tax of N213.7 million for the financial year ended March 31, 2026, despite operating in an increasingly difficult business environment characterised by rising energy and transport costs, high interest rates and security challenges.
The Chairman of the company’s Board of Directors, Obafunso Ogunkeye, disclosed the performance at the 48th Annual General Meeting of the publishing firm held on Thursday at the Kakanfo Inn and Conference Centre, Ibadan, Oyo State.
According to him, the company’s revenue increased by approximately 14 per cent during the year, rising to N3.895 billion from N3.402 billion recorded in the preceding financial year.
“Revenue increased by approximately 14 per cent to N3.895 billion from N3.402 billion in the preceding year. Growth was broad-based, with particularly strong demand for primary education titles. The Northern Zone also performed creditably despite the security challenges affecting parts of the region,” Ogunkeye said.
The chairman said the improved revenue reflected stronger demand across the company’s product lines, particularly publications targeted at primary education, as well as continued market penetration in different parts of the country.
However, he noted that the increase in revenue did not translate into a corresponding improvement in profitability because of the sharp rise in operating costs during the year under review.
Rising costs squeeze profitability
Ogunkeye said the publishing company had to contend with elevated energy and transportation expenses, high interest rates and security concerns, all of which put additional pressure on its operations and affected consumers’ purchasing power.
Marketing and distribution costs, he disclosed, rose significantly during the year as the company expanded its market coverage and faced higher logistics and sales expenses.
“Marketing and distribution expenses increased to N775.7 million from N694.7 million due to higher transport and sales costs and the expansion of market coverage,” he said.
The company, however, managed to keep administrative expenses broadly stable through efforts to control overheads.
“Administrative expenses remained substantially unchanged at approximately N1.134 billion, reflecting management’s efforts to contain overheads,” Ogunkeye said.
As a result of the cost pressures and lower non-operating income compared with the previous year, profit from operations fell to N338.2 million from N541.3 million.
Profit before tax also declined to N389.5 million, compared with N619.7 million in the preceding year, while profit after tax dropped to N213.7 million from N450.6 million.
Earnings per share consequently fell to 49.53 kobo from 104.45 kobo.
Lower other income affects bottom line
Ogunkeye explained that the decline in profitability should also be considered against the unusually high other income recorded in the preceding financial year.
He said the previous year’s figure had been boosted substantially by income generated from asset disposals.
“Other income was N56.9m, compared with N404.9m in the previous year. The company also recorded a fair value gain of N58.7m on investment property and finance income of N51.4m,” the chairman said.
Despite the decline in profit, Ogunkeye said the company remained focused on strengthening its operational efficiency and protecting its financial position.
He assured shareholders that management would continue to improve production efficiency, strengthen inventory control, optimise the company’s sales mix and adopt commercially appropriate pricing strategies to recover unavoidable increases in operating costs.
Company remains largely debt-free
The Managing Director and Chief Executive Officer of University Press Plc, Samuel Kolawole, said the company’s balance sheet remained resilient despite the difficult operating environment.
Kolawole disclosed that the company closed the financial year with cash and cash equivalents of approximately N950 million, while total equity increased during the period.
“Our balance sheet remained resilient. Total equity increased to approximately N3.54bn from N3.41bn in the preceding year. The company remained largely debt-free and closed the year with cash and cash equivalents of approximately N950m,” he said.
According to the managing director, the financial results reflected a business that continued to attract market demand and generate revenue, although profitability was affected by the exceptionally high cost environment.
He said the company’s financial position provided a foundation for continued investment in its operations and the development of new opportunities.
Management targets new revenue streams
Kolawole said University Press would continue to focus on maintaining the confidence it has built among learners, teachers, schools, booksellers and parents over several generations.
He, however, noted that the company could not rely solely on its long-standing reputation and would have to continue adapting to changing market conditions and customer expectations.
“University Press Plc has earned the confidence of generations of learners, teachers, schools, booksellers and parents. While that heritage is valuable, we are conscious of the fact that it will not secure our future on its own. We must continue to earn market trust through the quality, relevance and availability of our publications,” he said.
He added that management would continue to strengthen the business while identifying new sources of revenue that could create greater value for the company’s stakeholders.
Kolawole said the strategy would include efforts to ensure that authors, shareholders and other stakeholders received fair value from the intellectual property and content developed and published by the company.
The management's outlook comes as Nigeria's publishing industry continues to contend with higher production and distribution costs, reduced consumer purchasing power and changing patterns in the education and book markets.
For University Press, management said the focus would remain on growing revenue, controlling costs, strengthening its balance sheet and developing new commercial opportunities while maintaining the quality and relevance of its publications.