FOSRICH reported 63% increase in year end net profit

March 17, 2023

For the year ended December 31, 2022, FosRich Company Limited (FOSRICH)’s revenue rose by 43% to $3.37 billion relative to $2.35 billion booked in 2021. Revenue for the quarter amounted to $794.68 million, 19% above the $665.21 million booked for the similar quarter of 2021. The company noted that, “During the year we experienced a mix of fluctuations in volume and price increases. Price increases were driven by escalating copper and PVC ingredient prices on the international market and increased shipping costs.”

Cost of sales for the year increased by 51% to $1.98 billion (2021: $1.31 billion). However, gross profit increased by 33% to $1.39 billion compared to $1.04 billion in 2021. Gross profit for the quarter amounted to $291.81 million (2021: $372.07 million).

Other income totalled $10.47 million for the year relative to the previous year’s gain of $56.13 million.

Administrative and other expenses increased by 25% to $790.01 million (2021: $631.63 million) and depreciation went up by 26% to $104.56 million (2021: $83.14 million).

Fosrich’s finance costs recorded a decline of 2%, closing at $182.42 million (2021: $185.20 million).

Consequently, profit before tax for the year ended December 2022, amounted $325.74 million, 63% higher than the $199.31 million recorded in 2021. While for the quarter, losses amounted to $62.14 million relative to a profit before taxation of $20.09 million in 2021.

Tax charges for the year under review amounted to $1.03 million (2021: nil). As a result, net profit for the year amounted to $324.71 million relative to $199.31 million reported twelve months earlier. Net loss for the quarter totalled $63.17 million versus a net profit of $20.09 million in 2021.

Total comprehensive income for the year amounted to $325.31 million compared to $199.48 million for 2021.

Earnings per share amounted to $0.06 for the period relative to earnings per share of $0.04 in 2021. The number of shares used in our calculations is 5,022,755,550 units. Notably, FOSRICH last traded on March 16, 2023 at $2.94 with a corresponding P/E of 45.48 times.

Balance Sheet Highlights:

The company, as at December 31, 2022, recorded total assets of $5.07 billion, an increase of 35% when compared to $3.77 billion recorded last year. The increase was mainly attributed to ‘Property, Plant and Equipment’ and ‘Inventories’ which closed at $846.11 million (2021: $349.53 million) and $2.25 billion (2021: $1.78 billion).

Total Stockholders’ Equity as at December 31, 2022, closed at $1.79 billion (2021: $1.02 billion) resulting in a book value per share of $0.36 (2021: $0.20).


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