Date: November 13, 2018
Everything Fresh Limited (EFRESH), for the Nine Months Ended September 30, 2018, Revenue grew by 2% amounting to $1.39 billion, up from $1.37 billion reported a year ago. The third quarter reported revenues of $421.96 million, a 6% decline when compared to last period’s $450.23 million.
Cost of sales closed the period at $1.27 billion (2017: $1.26 billion) which translated into a 10% improvement in the company’s gross profit of $118.02 million (2017: $107.99 million). For the third quarter gross profit fell by 68% to $11.37 million in 2018 relative to $35.61 million in 2017.
Other operating income saw a decrease of 48%, falling to $1.04 million from $2.01 million.
Operating expenses totaled $92.71 million, 24% more than the $75.01 million booked the previous year. Of this, administrative expenses rose to $79.30 million (2017: $61.97 million), while finance costs of $13.41 million (2017:$13.05 million) was reported for the nine month period.
Profit before tax declined by $7.64 million for the period totaling $27.34 million in comparison to 2017’s $34.98 million.
Taxes of 8.27 million were charged resulting in a net profit of $19.08 million compared to $28.72 million for the corresponding period in 2017. However, for the quarter a net loss of $17.53 million was booked compared to a net profit of $9.28 million in the previous year. EFRESH stated, “margins contracted because of temporary competitive pressures.”
Consequently, earnings per share (EPS) amounted to $0.02 (2017: $0.04) while loss per share for the quarter amounted to $0.022 versus an EPS of $0.012 in 2017. The twelve months trailing EPS is $0.04. The number of shares used in this calculation was 780,000,000 shares. EFRESH stock price closed the trading period at a price of $1.96 on November 13, 2018.
Balance sheet at a Glance:
Total Assets grew by 71% or $338.03 million to close at $812.96 million as at September 30, 2018 (2017: $474.93 million). This surge in total assets was largely due to the $242.59 million increase in ‘Cash and Cash Equivalents’ which closed at $272.29 million (2017: $29.71 million). Property, Plant and Equipment also contributed to the increase with management indicating, “increases in Property, Plant and Equipment moved from $31 M at the beginning of the financial year to $54 M, as the company increased its fleet of motor vehicles and expanded its cold room facility.”
Shareholder’s equity totaled $633.27 million compared to the $234.44 million quoted as at September 30, 2018. This resulted in a book value of $0.81 (2017: $0.30).
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.