August 14, 2023

Everything Fresh Limited (EFRESH) for the six months ended June 30, 2023, reported a 32% increase in Revenue totaling $1.67 billion compared to $1.27 billion in the corresponding period last year. Revenue for the second quarter had a 13% increase to close at $826.72 million compared to $731.20 million for the comparable quarter of 2022.

Cost of Sales amounted to $1.32 billion (2022: $1.01 billion), this represents an increase of 31% year over year. Consequently, gross profit increased by 38% to $356.13 million compared to $257.63 million for the six months ended June 30, 2022. The Company booked gross profit of $180.50 million for the second quarter versus $149.62 million reported for the similar quarter of 2022.

Total Income increased by 37% to close at $356.16 million (2022: $260.36 million). Administrative and other expenses increased by 22% from $194.26 million in 2022 to $237.48 million in the period under review. Selling and promotion expenses amounted to $12.16 million relative to $9.78 million a year prior. As a result, operating expenses for the six months ended June 30, 2023, amounted to $249.65 million, a 22% increase relative to $204.03 million reported in 2022.

Operating Profit for the six months ended June 30, 2023, amounted to $106.51 million, an 89% increase relative to $56.32 million reported in 2022. Operating Profit for the second quarter amounted to $59.03 million (2022: $40.42 million). Finance Costs totalled $28.32 million a 51% increase from the corresponding period last year. (2022: $18.81 million).

Profit Before Tax for the six months ended June 30, 2023, amounted to $78.19 million, a 108% increase relative to $37.51 million reported in 2022. Profit Before Tax for the Second quarter amounted to $43.12 million (2022: $30.32 million).

There was no taxation recorded for the period. Net Profit for the six months amounted to $78.19 million, a 108% increase from the $37.51 million reported in 2022. For the Second quarter, Net Profit was $43.12 million (2022: $30.32 million). Net profit attributable to shareholders for the six months amounted to $77.35 million relative to $31.59 million recorded in the prior year. Net profit attributable to shareholders for the second quarter totalled $49.29 million versus $26.96 million in the prior comparable quarter.

Consequently, Earnings Per Share for the Six months amounted to $0.10 (2022: EPS: $0.05), while Earnings Per Share for the quarter totaled $0.06 (2022: EPS: $0.04). The twelve-month trailing EPS was $0.11, and the number of shares used in these calculations was 780,000,000.

Notably, EFRESH’s stock price closed the trading period on August 11, 2023, at a price of $1.48 with a corresponding P/E ratio of 13.00x.

Balance Sheet Highlights

The Company’s assets totalled $1.23 billion (2022: $1.06 billion). The main contributor to the increase in assets was a $89.44 million increase in Inventories to total $481.09 million.

Shareholder’s equity was $442.71 million (2022: $353.38 million), representing a book value per share of $0.57 (2022: $0.45).

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