May 14, 2024
Fosrich Company Limited (FOSRICH) for the first quarter ended March 31, 2024, reported a 21% decrease in revenue totalling $859.83 million compared to $1.08 billion in the corresponding three months last year. Management noted, “the main revenue drivers continue to be the Electrical, PVC, Hardware and Transformer lines of business”.
Cost of Sales amounted to $470.28 million (2023: $637.80 million), this represents a decrease of 26% year over year. Consequently, gross profit decreased by 13% to $389.55 million compared to $446.01 million for the first quarter in 2023.
Other Income soared by 725% to close at $5.27 million (2023: $638,535), while Administrative and other expenses increased by 16% from $260.22 million in 2023 to $301.63 million for the three months period under review.
Finance cost totalled $55.73 million a 17% increase from the corresponding period last due to debt refinancing in a high interest rate environment and additional loan financing. (2023: $47.44 million). Operating profit amounted to $37.46 million, a 73% decline over the prior year.
Profit before taxation for the first quarter amounted to $37.46 million, a 73% decrease relative to $138.98 million reported in 2023.
Taxation for the three months was $4.47 million (2023: $17.26 million). Net profit for the three months amounted to $32.99 million, a 73% decrease from the $121.72 million reported in 2023.
Consequently, Earnings Per Share for the three months amounted to $0.01 (2023: EPS: $0.02). The twelve-month trailing EPS was $0.03, and the number of shares used in these calculations was 5,078,485,197.
Notably, FOSRICH’s stock price closed the trading period on May 13, 2024, at a price of $2.13 with a corresponding P/E ratio of 73.02x.
Balance Sheet Highlights
The company’s assets totalled $6.01 billion (2023: $5.83 billion). The increase was attributed to a 865% jump in ‘due from related parties’ closing at $779.77 million.
Shareholder’s equity was $2.07 billion (2023: $1.91 billion), representing a book value per share of $0.41 (2023: $0.38).
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