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).
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.