November 12, 2024
Fosrich Company Limited (FOSRICH)
Unaudited financials for the nine months ended September 30, 2024:
Fosrich Company Limited (FOSRICH) for the nine months ended September 30, 2024, reported a 2% decrease in Revenue totaling $2.82 billion compared to $2.86 billion in the corresponding period last year. Revenue for the third quarter had a 28% increase to close at $1.07 billion compared to $838.75 million for the comparable quarter of 2023.
Cost of Sales amounted to $1.50 billion (2023: $1.78 billion), this represents a decrease of 16% year over year. Consequently, gross profit increased by 22% to $1.32 billion compared to $1.08 billion for the nine months ended September 30, 2023. The company booked gross profit of $446.63 million for the third quarter versus $264.07 million reported for the similar quarter of 2023.
Other Income increased by 122% to close at $12.51 million (2023: $5.62 million), while Administrative and other expenses increased by 27% from $781.17 million in 2023 to $989.70 million in the period under review. Also, Finance cost totaled $251.57 million a 66% increase from the corresponding period last year. (2023: $151.88 million).
As a result, profit before taxation for the nine months ended September 30, 2024, amounted to $93.54 million, a 39% decrease relative to $154.49 million reported in 2023. Profit before taxation for the third quarter amounted to $6.03 million (2023: Pretax loss of $31.11 million).
Taxation for the nine months ended September 30, 2024, had a 41% decrease to reach $11.21 million (2023: $19.03 million). As such, Net profit for the nine months amounted to $82.32 million, a 39% decrease from the $135.47 million reported in 2023. For the third quarter, Net profit was $4.44 million (2023: Net loss of $35.19 million).
Fosrich highlighted, “Our current-year numbers are affected by the substantial fall in PVC and solar panel cost on the world markets, in addition to the slowness in housing-starts locally, caused primarily by the considerable increase in interest rates in Jamaica in the current period when compared to the prior year”.
Consequently, Earnings Per Share for the nine months amounted to $0.02 (2023: EPS: $0.03), while Earnings Per Share for the quarter totaled $0.00 (2023: LPS: $0.01). The twelve-month trailing EPS was $0.04, and the number of shares used in these calculations was 5,078,485,197.
Notably, FOSRICH’s stock price closed the trading period on November 10, 2024, at a price of $2.24 with a corresponding P/E ratio of 62.47x.
Balance Sheet Highlights
The company’s assets totalled $6.81 billion (2023: $5.41 billion). The growth in total assets was primarily due to ‘Inventories’ and ‘Due from related parties’ growing by $608.60 million and $699.77 million, respectively.
Shareholder’s equity was $2.12 billion (2023: $2.04 billion), representing a book value per share of $0.42 (2023: $0.40).
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