FOSRICH reports 103% increase in first quarter Net Profit

May 16, 2018

FosRich Company Limited (FOSRICH) for the three months ended March 31, 2018 booked an 8% decline in revenue to total $271.85 million compared to $294.51 million for the same period in 2017.

Cost of sales for the year showed a reduction of 7%, moving from $155.51 million to $143.93 million. The Company noted, “These decreases were attributed primarily to product price movements. While volumes may be steady or increasing, product prices have seen some downward movement on the international markets.” Despite this decrease, gross profit amounted to $127.92 million, a contraction of 8% when compared to $139.00 million recorded last year.

Other income, for the period totalled $10.10 million a significant increase of 2383% when compared to the $406,708 recorded for the prior period in 2017. Management noted, this was as a result of “favourable foreign exchange gains amounting to $7.8 million”

Administrative and other expenses fell by 12%, to total $96.23 million (2017: $109.40 million). This decrease was driven primarily by “efficiencies gained from the management of staff and related costs, selling and marketing expenses and insurance costs. There were increases in staff training, rent associated with the new lease for the adjacent Molynes Road facility and bank charges” the Company noted.

Finance costs of $10.99 million were recorded for the period, a 19% increase when compared to $9.23 million for the corresponding period in 2017. Fosrich noted, “This increase is being driven by a new working capital line of credit obtained to assist with the financing of operations. This new facility was obtained at more favourable rates than the previous bank facilities.”

Profit before taxation totalled $30.79 million, a 48% increase when compared to $20.78 million last year.

No taxes were incurred for the period, thus net profit for the three months ended March 31, 2018 totalled $30.79 million, an 103% increase compared to $15.17 million the prior period

Earnings per share (EPS) for the period totalled $0.06 (2017: $0.03). The trailing twelve months earnings per share amounted to $0.14. The number of share used in our calculations amounted to 502,275,555 units. FOSRICH’s stock price close the trading period on May 16, 2018 at $2.34

 Balance Sheet at a glance:

 As at March 31, 2018, total assets amounted to $1.35 billion, up $4% million from the balance of $1.30 billion as at March 31, 2018. The increase in total assets was as a result of ‘Due from Related Parties’ and ‘Inventories’ which totalled $202.16 million (2017: $124.97 million) and $709.70 million (2017: $625.06 million).

Shareholders’ Equity of $639.76 million was reported as at March 31, 2018 (2016: $357.13 million) which resulted in a book value per share of $1.27 (2017: $1.21).

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2018-05-16T22:09:15+00:00