FOSRICH reported 59% increased in year end net profit

March 8, 2022

For the year ended December 31, 2021, FosRich Company Limited (FOSRICH)’s revenue rose by 24% to $2.35 billion relative to $1.90 billion booked in 2020. Revenue for the quarter amounted to $665.21 million, 32% above the $504.20 million booked for the similar quarter of 2020.

Cost of sales for the year increased by 22% to $1.31 billion (2020: $1.07 million). However, gross profit increased by 26% to $1.04 billion compared to $824.75 million in 2020. Gross profit for the quarter amounted to $372.07 million (2020: $270.43 million).

Other income totalled $56.13 million for the year relative to the previous year’s gain of $32.46 million.

Administrative and other expenses increased by 25% to $631.63 million (2020: $505.75 million) and depreciation went up by 26% to $83.14 million (2020: $65.75 million). Fosrich’s finance costs recorded an increase of 16%, closing at $185.20 million (2020: $160.02 million).

Consequently, profit before tax for the year ended December 2021, amounted $199.31 million, 59% higher than the $125.70 million recorded in 2020. While for the quarter, profit before taxation amounted to $20.09 million relative to $50.45 million in 2020, representing a 60% decrease year-on-year.

There were no tax charges for the year under review (2020: nil). As a result, net profit for the year amounted to $199.31 million relative to $125.70 million reported twelve months earlier. Net profit for the quarter amounted to $20.09 million (2020: $50.45 million).

Total comprehensive income for the year amounted to $199.48 million compared to $125.23 million for 2020.

Earnings per share amounted to $0.40 for the period relative to earnings per share of $0.25 in 2020. EPS for the quarter amounted to $0.04 (2020: $0.10). The number of shares used in our calculations is 502,275,555. Notably, FOSRICH stock price close the trading period on March 8, 2022 at $15.99 with a corresponding P/E of 40.30 times.

Balance Sheet Highlights:

The company, as at December 31, 2021, recorded total assets of $3.77 billion, an increase of 23% when compared to $3.06 billion recorded last year. The increase was mainly attributed to ‘Inventories’ and ‘Rights of Use Assets’ which closed at $1.78 billion (2020: $1.46 billion) and $564.85 million (2020: $393.34 million).

Total Stockholders’ Equity as at December 31, 2021, closed at $1.02 billion (2020: $868.56 million) resulting in a book value per share of $2.02 per share  (2020: $1.73 per share).


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.