BPOW reports 56% increase in first quarter net profits

Date: September 5, 2018

Blue Power Group Limited (BPOW) for the three months ended July 31, 2018 revenues increased by 15%, year over year, totaling $436.45 million (2017: $380.54 million) as sales from the Lumber division increased by 10%, while sales from the soap division rose 27%. BPOW stated that “The first quarter ended July 31, 2018 shows increased sales and significantly improved profits.”

Cost of Sales for the period showed an increase of 14%, moving from $292.45 million to $332.69 million. As such, Gross Profit amounted to $103.75 million, an increase of 18% on the $88.09 million recorded for the first three month ended July 31, 2017.

Administrative Expenses for the quarter saw an increase of 23%, totaling $58.30 million relative to last year’s $47.41 million.

BPOW reported nil for Other Income for the first quarter relative to $1.14 million recorded for the corresponding period in 2017.

Finance Cost of $1.63 million was recorded for the first quarter compared to $1.15 million in the year prior, while Finance Income totalled $24.64 million relative to the $3.11 million for the same quarter in 2017. Consequently, Profit before taxation reflected a 56% jump year over year to $68.47 million versus $43.78 million booked for the prior year’s corresponding quarter.

After taxation of $8.27 million (2017: $5.30 million), Net Profit for the first quarter amounted to $60.20 million compared to $38.48 million, a 56% improvement. Management noted, “In the period under review profits have been bolstered by significant benefits due to changes in the exchange rate.”

Earnings per share for the quarter totaled $0.11 (2017: $0.07), while for the trailing twelve months EPS was $0.22. The number of shares used in this calculation was 564,990,000 Notably, BPOW’s stock price closed the trading period on September 05, 2018 at a price of $4.80.

BPOW further advised, “Our efforts to improve our export performance continue to show results. Over 32% of our soap sales went to export markets in the Caribbean, the USA and the UK. Most significant improvement has come from the Caribbean market where we now have many distributors selling our products. The increase in export sales over the same quarter in the previous year was 82%, from $25 million to $45 million.”

Balance Sheet at a glance:

 As at July 31, 2018, total assets amounted to $907.52 million, up $94.23 million from the balance of $813.30 million as at July 31, 2017. The largest contributor to the increase in assets were ‘Investment’ and ‘Property, plant & Equipment’ which closed the period at $158.40 million (2017: nil) and $155.83 million (2017: $113.16 million) respectively.

Shareholders’ Equity increased by approximately 14% amounting to $812.20 million (2017: $709.71 million) with a book value per share of $1.44 (2017: $1.26).


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