University Press Plc, a leading educational publisher in Nigeria, has reported a 14.5% increase in revenue to N3.895 billion for the financial year ended March 31, 2026. The company's revenue growth was driven by sustained demand for educational materials, particularly primary education titles. Despite the revenue growth, the company's profitability was affected by rising production, energy, transportation, and financing costs.
The company's profit before tax declined to N389.5 million from N619.7 million recorded in the previous year, while profit after tax fell to N213.7 million from N450.6 million. The decline in profitability was attributed to higher operating costs and the absence of exceptional income recorded in the preceding year. Cost of sales rose from N1.445 billion to N1.763 billion during the year, driven by increases in material, printing, production, and logistics expenses.
University Press Plc's gross profit increased from N1.957 billion to N2.132 billion, but the gross profit margin narrowed from 58% to about 55%. Marketing and distribution expenses also rose to N775.7 million from N694.7 million, reflecting higher transportation and sales costs as the company expanded its market coverage. The company's profit from operations fell to N338.2 million from N541.3 million in the preceding year.
The Chairman of University Press Plc, Obafunso Ogunkeye, said the company's performance demonstrated its resilience despite a difficult operating environment. He noted that inflation, high energy and transport costs, elevated interest rates, and insecurity had increased operating costs while weakening the purchasing power of consumers and institutions. Ogunkeye also mentioned that foreign exchange movements and global supply-chain disruptions had increased the cost of paper, ink, machinery components, and other imported inputs.
Despite the challenges, Ogunkeye said the company's Northern Zone performed creditably, while demand for primary education titles remained strong. The company also identified the Federal Government's revised national curriculum for the 2025/26 academic year as both a challenge and an opportunity for the business. University Press Plc is reviewing its existing catalogue, revising affected titles, and developing new learning materials to align with the revised curriculum.
The company's Managing Director/Chief Executive Officer, Samuel Kolawole, said the results highlighted the need for the company to convert revenue growth more effectively into profitability. Kolawole said the company's strategy for the 2026/27 financial year would focus on strengthening its core publishing business, improving operational efficiency, and developing new channels through which learners and institutions could access its content. The company will also accelerate investment in e-books, interactive learning resources, and other digital products.
University Press Plc recommended a dividend of 18 kobo per ordinary share of 50 kobo, compared with 15 kobo paid in the previous year. The proposed dividend amounts to about N77.65 million and remains subject to shareholders' approval. The company's net assets increased to N3.557 billion from N3.408 billion, while net current assets rose to N1.946 billion from N1.792 billion. The company's financial position remained resilient, with management noting that it was largely debt-free and had sufficient resources to meet its immediate obligations and support selected growth initiatives.
Key points
- University Press Plc reports 14.5% revenue growth to N3.895 billion despite rising production costs and inflation.
- The company's profitability was affected by higher operating costs and the absence of exceptional income recorded in the previous year.
- University Press Plc will focus on strengthening its core publishing business, improving operational efficiency, and developing new channels through which learners and institutions could access its content.
