Tripple Gee & Company Plc, a leading producer of printing and packaging products, narrowly avoided another year of losses in 2026. However, accumulated losses exceeding N834 million have kept shareholders’ funds firmly in negative territory for a second consecutive year.
The company’s audited financial report for the year ended March 2026 shows a modest rebound from a hefty loss of almost N1.4 billion in 2025 to a marginal after-tax profit of just under N13 million. Last year’s loss had already eroded the company’s equity, with retained losses of nearly N1.2 billion creating a negative equity position of N588 million. Adjustments in 2026 lowered retained losses to N834 million, but shareholders’ funds remain negative at approximately N268 million.
Notably, the company’s statement of financial position fails to reflect this negative equity. It incorrectly states that total liabilities equal total assets, whereas the numbers indicate that liabilities actually exceed assets by the value of negative equity. This accounting discrepancy was also present in the 2025 financials, where total liabilities were understated by the amount of the negative equity. In both years, the stated liabilities were lower than the sum of current and non-current liabilities.
Revenue Gains, Cost Cuts Drive Turnaround
Some improvement in revenue and aggressive cost-cutting played a crucial role in the company’s escape from loss in 2026. Sales revenue climbed nearly 23 per cent to N2.24 billion, driven entirely by growth in packaging products. Conversely, revenue from printing services declined by 7 per cent, settling at about N586 million for the year.
Management took decisive steps to rein in costs, slashing production expenses by nearly 37 per cent to just over N1 billion. This resulted in a dramatic improvement in gross profit, which surged from N86.5 million to N1.14 billion year-on-year.
Selling and distribution expenses were also trimmed by 10.5% to about N796 million. Despite this reduction, these expenses still consumed around 70% of the company’s gross profit.
Operating activities turned around sharply, moving from a loss of approximately N803 million in 2025 to a profit of nearly N346 million in 2026. Finance expenses were also cut, dropping from about N574 million to almost N322 million. However, finance charges still swallowed 93 per cent of the operating profit for the year.
The company’s interest-bearing debt increased from N4.6 billion at the end of 2025 to over N5 billion by March 2026, adding further pressure to its financial position.
Pre-tax profit for the year stood at less than N24 million, with tax liabilities claiming N11 million and leaving shareholders with a net profit of under N13 million. While modest, this was a significant improvement over the N1.4 billion net loss recorded the prior year.
Outlook: Sustained Recovery Hinges on Growth and Deleveraging
For Tripple Gee to return to positive equity, further revenue growth and continued cost discipline will be essential in the current financial year. Improving cash flow is expected to ease borrowing pressures, providing a path toward deleveraging the balance sheet and repairing negative equity.
Whether the company can sustain this positive trajectory and restore shareholders’ funds will be key points to watch in its upcoming first quarter results.
