Date: March 01, 2021
For the year ended December 31, 2020, FosRich Company Limited (FOSRICH)’s revenue rose by 18% to $1.90 billion relative to $1.61 billion booked in 2019. Revenue for the quarter amounted to $504.20 million, 18% above the $425.73 million booked for the similar quarter of 2019.
Cost of sales for the year increased by 19% to $1.07 billion (2019: $902.22 million). However, gross profit increased by 16% to $824.75 million compared to $709.95 million in 2019. Gross profit for the quarter amounted to $270.43 million (2019: $195.12 million).
Other income totalled $32.46 million for the year relative to the previous year’s gain of $51.98 million.
Administrative and other expenses increased by 4% to $505.75 million (2019: $487.32 million) and depreciation went up by 18% to $65.75 million (2019: $55.51 million). While finance costs recorded an increase of 46%, closing at $160.02 million (2019: $109.42 million).
Consequently, profit before tax for the year ended December 2020 amounted $125.70 million, 15% higher than $109.68 million recorded in 2019. While for the quarter, profit before taxation amounted to $50.45 million relative to $34.48 million in 2019, representing a 46% increase year-on-year.
There were no tax charges for the year, relative to a tax charge of $2.79 million booked in 2019. As a result, net profit for the year amounted to $125.70 million relative to $106.24 million reported twelve months earlier. Net profit for the quarter amounted to $50.45 million (2019: $33.55 million).
Total comprehensive income for the year amounted to $125.23 million compared to $106.24 million for 2019.
Earnings per share amounted to $0.25 for the period relative to earnings per share of $0.21 in 2019. EPS for the quarter amounted to $0.10 (2019: $0.07). The number of shares used in our calculations is 502,275,555. Notably, FOSRICH stock price close the trading period on February 26, 2021 at $5.11 with a corresponding P/E of 20.42 times.
Balance Sheet Highlights:
The company, as at December 31, 2020, recorded total assets of $3.06 billion, an increase of 24.75% when compared to $2.45 billion recorded last year. The increase was mainly attributed to ‘Inventories’ and ‘Rights of Use Assets’ which closed at $1.46 billion (2019: $1.17 billion) and $393.34 million (2019: $208.91 million).
Total Stockholders’ Equity as at December 31, 2020, closed at $868.56 million (2019: $799.59 million) resulting in a book value per share of $1.73 per share (2019: $1.59 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.