August 16, 2021
Everything Fresh (EFRESH) for the six months ended June 30, 2021 reported total revenues of $584.82 million, a 2% increase from the $573.21 million reported for the prior period in 2020. For the quarter, revenue totalled $389.24 million, 364% more than the $83.97 million reported for 2020’s quarter. EFRESH stated, “On June 1, 2021 the company completed the purchase of 60% of the shares of Everything Fresh Bahamas Ltd, and has consolidated the latter’s results in these quarterly financial statements. In addition, EFRESH stated, “Sales to the tourism sector began to rebound in March and April of this year followed by significant growth in May and June.”
Cost of Sales for the period decreased 12% to $455.01 million relative to the $516.43 million booked the corresponding period in 2020. As such, gross profit for the period amounted to $129.80 million, a 129% increase from the $56.77 million reported in 2020. Gross profit for the quarter amounted to $85.54 million, relative to a loss of $5.85 million booked in prior quarter.
The Company reported other operating income of $3.16 million for the period, 2% more than the $3.09 million reported for the corresponding period. For the quarter other operating income closed at $2.43 million (2020: $2.09 million).
Total operating expenses rose by 31% for the six months ended June 30, 2021, to total $146.20 million compared to $112.02 million booked for the corresponding period in 2020. Of this, administrative expenses rose to $136.11 million (2020: $111.52 million), while selling and promotion expenses advanced to $10.09 million (2020: $501,000). Management noted, The Company ceased production of meat products at our plant in Bog Walk on April 30 of this year. This has yielded a significant reduction in expenses in May and June, and the improved profitability of the Company.”
The company reported finance cost of $10.59 million, 32% decrease on the $15.59 million reported in 2020.
As such, the Company booked loss before taxation of $23.82 million, relative to loss before tax of $67.76 million recorded for 2020’s corresponding period. However, for the quarter, profit before taxation amounted to $3.78 million versus loss before tax of $56.33 million booked in the same period last year.
No taxes were incurred for the period in review or the prior period, thus resulting in net loss for the six months closed at $23.82 million versus net loss of $67.76 million recorded for 2020. Net profit for the quarter totalled $3.78 million relative to $56.33 million recorded for the prior year’s quarter.
Consequently, loss per share (LPS) for the period amounted to $0.03 (LPS 2020: $0.09), while earnings per share for the quarter totaled $0.005 (LPS 2020: $0.07). The trailing twelve months LPS is $0.18. The total amount of shares outstanding used for this calculation was 780,000,000 units. Notably, EFRESH closed the trading period on August 13, 2021 at a price of $0.99.
Balance Sheet at a glance:
As at June 30, 2021, total assets amounted to $888.02 million, 4% less than last year’s $926.30 million in 2020. This was attributed to a decrease in ‘Inventories’ totalling $200.60 million (2020: $425.01 million). However, this was tempered with by an upward movement in ‘Trade Receivables’ which amounted to $258.95 million (2020: $128.83 million).
Shareholder’s Equity decreased by 29% for six months period, totalling $335.12 million compared to the previous year’s total of $472.01 million, this resulted in a book value per share of approximately $0.43 relative to $0.61 in 2020.
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.