University Press Plc (UPL) has released its audited financial results for the period ended March 31, 2026, showing a significant drop in profitability despite revenue growth.
Financial Performance Overview
For the fiscal year ended March 31, 2026, University Press Plc recorded a pre-tax profit of N389.52 million, marking a 37.15% decrease from N619.74 million reported in the previous year. Profit after tax saw an even steeper decline of 52%, settling at N213.67 million compared to N450.63 million in 2025.
Despite the profit decline, the company's revenue grew by 14.47% year-on-year, reaching N3.89 billion from N3.40 billion. Gross profit also increased by 8.91% to N2.13 billion, up from N1.96 billion in the prior year.
The reported pre-tax profit slightly exceeded the Q4 forecast of N388.10 million, however, profit after tax missed its forecast of N256.14 million. Despite the weaker profit performance, the board proposed a dividend of 18 kobo per ordinary share of 50 kobo each, totaling N77.65 million, payable on September 24, 2026, to shareholders registered by August 31, 2026.
Revenue and Profitability Drivers
The growth in revenue was primarily driven by the Northern zone, where sales rose to N1.45 billion from N1.04 billion, contributing 37.19% of total revenue. The Western zone remained the largest contributor at N1.76 billion, accounting for 45.25% of revenue, while the Eastern zone added N683.67 million, or 17.55%.
By product category, Primary books provided the strongest support, with sales increasing to N2.22 billion from N1.55 billion, making up 57.07% of total revenue. Secondary books, however, declined to N1.56 billion from N1.77 billion, while Tertiary and General Reference books saw an increase to N111.04 million from N87.66 million.
The weakening profitability, despite revenue growth, was attributed to higher direct costs, increased operating expenses, and a significant drop in other income. Cost of sales rose to N1.76 billion from N1.45 billion, outpacing revenue growth and reducing the gross margin to 54.74% from 57.53%.
The cost of books sold was the largest cost item, increasing to N1.45 billion from N1.15 billion, with royalties remaining material at N251.35 million. Marketing and distribution expenses also climbed to N775.70 million from N694.73 million, while administrative expenses remained broadly flat at N1.13 billion.
Other operating income significantly fell to N56.90 million from N404.94 million, mainly due to a much lower profit on disposal of property, plant, and equipment. Finance income also decreased to N51.36 million from N78.39 million, with no finance-cost line disclosed.
Balance Sheet and Cash Flow
University Press Plc's total assets grew by 4.98% year-on-year to N4.732 billion, with current assets constituting over 62% of the total. Current assets were primarily driven by a high inventory of N1.87 billion, representing 39% of total assets, and property, plant, and equipment (PPE) of N1.34 billion, or 28% of total assets.
On the equity and liabilities side, total shareholders’ funds increased by 4.37% to N3.557 billion, accounting for over 75% of the balance sheet size. The cash-flow statement indicated net cash used in operating activities of N11.60 million, an improvement from N377.93 million used in the prior year, though working-capital movements, particularly inventory build-up and higher receivables, continued to absorb cash.
Market Performance
University Press Plc began the year at N6.00 and closed at N5.15, reflecting a 14.17% year-to-date loss and a 16.26% month-on-month loss. At this closing price, the stock was trading at 69% of its 52-week high.
