FOSRICH reports 18% increase in year-end net profit

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).



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