EFRESH reports 78% decline in year end net profits

Date: February 14, 2019 

Everything Fresh Limited (EFRESH)for the Year Ended December 30, 2018Revenue grew by 4% for the period amounting to $1.88 billion, up from $1.81 billion reported a year ago. For the fourth quarter, revenues totaled of $489.07 million, a 10% increase when compared to last period’s $443.15 million.

Cost of sales closed the period at $1.74 billion (2017: $1.67 billion) which translated into a gross profit of $143.11 million (2017: $143.04 million). For the fourth quarter, gross profit fell by 31% to $24.10 million relative to $35.05 million in 2017. The Company noted, “Margins that were contacted with respects to some of the company’s July to December hotel contracts.”

Other operating income declined by 12% for the period to $1.83 million from $2.09 million reported the prior year. Notably, the Company booked a foreign exchange gain of $1.11 million  relative to nil the prior year.

Operating expenses totaled $129.55 million, 30% more than the $99.76 million booked the previous year. Of this, administrative expenses rose to $115.00 million (2017: $82.41 million), while finance costs amounted to $14.54 million (2017:$17.35 million).

Profit before tax declined 64% for the period totaling $16.51 million in comparison to 2017’s $45.37 million.

Following taxation of $27 million (2017: $8.07 million), net profit of $8.24 million was booked for the period relative to $8.07 million for the corresponding period in 2017. However, for the quarter a net loss of $10.84 million was booked compared to a net profit of $8.58 million in the previous year.

Consequently, earnings per share (EPS) amounted to $0.01 (2017: $0.05) while loss per share for the quarter amounted to $0.014 versus an EPS of $0.011 in 2017. The number of shares used in this calculation was 780,000,000 shares. EFRESH stock price closed the trading period at a price of $1.90 on February 14, 2018.

Balance sheet at a Glance:

Total Assets grew by 65% or $318.75 million to close at $807.3 million as at December 30, 2018 (2017: $488.55 million). This surge in total assets was largely due to the $70.46 million increase in ‘Investments’ which closed at $71.46 million (2017: $1.00 million). ‘Inventories’ and ‘Other receivables’ also contributed to this growth , totaling $199.55 million (2017:$131.21million) and $97.38 million (2017: $38.06 million) respectively.

Shareholder’s equity totaled $619.05 million compared to the $02 million the prior year. This resulted in a book value of $0.79 (2017: $0.31).

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2019-02-15T01:05:13+00:00