March 14, 2023
BPOW for the nine months ended January 31, 2023 revenues rose by 83% to $633.39 million relative to $346.52 million recorded in 2022. For the third quarter, revenue grew 43% from $135.42 million in 2022 to $193.72 million in 2023. Management highlighted, “We experienced revenue growth in all our main product categories including our bath soap lines, specialty soaps and our laundry soap business. Revenue growth came from existing and new customers and saw the group gaining market share locally and re-enforcing its reputation as a leading private label manufacturer in the region.”
Cost of Sales for the period rose by 116% to $505.50 million (2022: $233.66 million). As such, gross profit grew by 13% to $127.89 million (2022: $112.85 million). For the third quarter, cost of sales grew by 37% to $147.98 million (2022: $102.01 million); consequently, gross profit for the quarter rose 37% to $45.74 million (2022: $33.41 million). Impairment loss on investment for the period amounted to $703,465 (2022: $50,608).
Administrative Expenses amounted to $136.18 million, an 11% increase relative to $122.97 million recorded in the last corresponding period. Consequently, Operating loss totalled $8.80 million, relative to Operating Loss of $8.01 million booked for the prior year’s period.
Notably, other income fell to $22.14 million versus $55.85 million documented in the same period last year. For the quarter, other income closed at $6.29 million (2022: $5.59 million).
Finance Income amounted to $12.81 million (2022: $23.68 million), while Finance Cost totalled $3.12 million (2022: $2.04 million) for the nine months period. As such, Profit before taxation decreased by 81% to $40.59 million relative to $215.12 million for the corresponding period last year.
The Company reported a 6% increase in taxes paid year-to-date to $11.39 million compared to the $10.78 million paid for the same period last year. Consequently, Net Profit from continuing operations fell by 86% to $29.20 million (2022: $204.34 million). Net Profit for the quarter totalled $12.81 million relative to Net Profit of $9.33 million booked the prior year’s quarter.
Total comprehensive income for the period totalled $29.20 million, relative to the $239.60 million reported twelve months prior. For the quarter total comprehensive income amounted to $12.81 million in comparison to the comprehensive income of $56.59 million reported in 2022.
The company noted, “An important part of our plan for profitable business growth, is our commitment to efficiency, innovation and customer development. During the quarter we continued to undertake capital projects and make improvements to our procurement arrangements, quality systems, labour efficiency, production facilities and product line. We began to see the positive results of these initiatives in the third quarter and expect this to continue and gather momentum in the financial year ahead.”
Earnings-per-share (EPS) for the period amounted to $0.05 (2022:$ 0.36), while EPS for the quarter amounted to $0.02 (2022:$0.02). The twelve-month earnings-per-share amounted to $0.03. The number of shares used in our calculation is 564,990,000. Notably, BPOW stock price closed the trading period on March 13, 2023 at $2.41 with a corresponding P/E ratio of 74 times.
Balance Sheet at a glance:
The company, as at January 31, 2023, recorded total assets of $1.58 billion, a decrease of 1% when compared to $1.60 billion recorded last year. This was as a result of the Company booking ‘Property, plant and equipment’ and ‘Inventories’ of $325.96 million (2022: $263.75 million) and $437.47 million (2022: $308.52 million).
Total Stockholders’ Equity as at January 31, 2023 closed at $1.45 billion (2022: $1.49 billion). This resulted in a book value of $2.56 (2022: $2.63).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
