Multiverse PLC, a major quarry company in Nigeria said its gross revenue for the third quarter if Nigeria crashed by 81.1%.
In a disclosure made available to the Nigerian Stock Exchange, Multiverse said gross revenue fell to NGN6,3 billion versus NGN33,7 billion booked last year.
The result is not unexpected as major construction works across the country have nearly grinded to halt since Nigeria’s economy was plunged into the worst recession in 2o years.
The result glaringly depicts the company has seen no serious business activities in the third quarter because instead of an increase in cost of sales, it crashed to NGN5,2 billion. Last year, when the company booked a revenue of NGN33,7 billion, its cost of sales was NGN26,8 billion.
Multiverse must have cut jobs as its administrative expenses has crashed to NGN43,3 billion compared to NGN76,0 billion it expended on the item last year.
The consequence of a massive cut in its revenue resulted in a net loss of NGN381,6 million compared to NGN324,0 million net loss recorded last year. The company’s challenges had started before the current recession.
The company is also insolvent and would need to raise more capital. Total debt in its books rose to NGNs NGN853 million compared to NGN367 million it was owing last year.