September 14, 2022
CAC 2000 Limited’s (CAC) ‘Revenues’ for the nine months ended July 31, 2022 decreased 8% to $754.94 million (2021: $820.20 million). For the third quarter, ‘Revenues’ decreased by 30% to $219.28 million (2021: $311.68 million).
‘Cost of Sales’ decreased by 11% for the period to $444.24 million (2021: $499.59 million). Consequently, ‘Gross Profit’ for the period fell by 3% to close at $310.70 million (2021: $320.61 million). For the quarter, ‘Gross Profit’ fell 33% to close at $74.40 million (2021: $111.82 million).
The Company reported a 10% increase in ‘Total Expenses’ to $320.86 million (2021: $291.91 million). This was as a result of a 11% increase in ‘General Administration’ to $305.07 million (2021: $275.85 million) and 2% decrease in ‘Selling & Distribution’ to $15.78 million (2021: $16.06 million). For the quarter, the Company reported a 8% increase in ‘Total Expenses’ which closed at $108.99 million (2021: $100.71 million).
‘Other Income’ of $8.24 million was recorded for the period up from $1.55 million reported for the same period the prior year. ‘Loss before Taxation and Finance Cost’ amounted to $1.92 million, versus a profit of $30.24 million booked in 2021.
‘Net Finance Costs’ decreased 20% for the period in review to $17.90 million (2021: $22.36 million); as a result of ‘Interest Expense’ and ‘Interest Income’ for the nine months amounting to $20.66 million (2021: $18.88 million) and $41,951 (2021: $40,388), respectively.
‘Loss Before Taxation’ for the nine months closed at $19.82 million (2021: profit of $7.87 million). Tax of $83,604 was charged for the period (2021: credit of $2.87 million). As such, ‘Net Loss’ for the nine months closed at $19.90 million (2021: profit of $10.74 million). F or the quarter, ‘Net Loss’ was reported at $33.70 million (2021: profit of $2.04 million).
Loss-per-share (LPS) for the nine months amounted to $0.15 (2021: EPS of $0.08), while for the quarter the LPS amounted to $0.26 (2021: EPS of $0.02). The twelve months trailing EPS amounted to $0.07. The number of shares used in our calculations is 129,032,258 units. Notably, CAC’s stock price closed the trading period on September 13, 2022 at a price of $6.96.
Balance Sheet Highlights:
As at July 31, 2022, the Company reported total assets of $1.51 billion, a 32% increase when compared to $1.14 billion a year ago. This was as a result ‘Inventories’ which increased 82% to $642.13 million (2021: $352.18 million).
Shareholders’ Equity as at July 31, 2022 was $403.73 million compared to $399.09 million a year ago. This resulted in a book value per share of $3.13 (2021: $3.09).
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.