Date: August 31, 2020
Fontana Limited recorded a 22% increase in revenues to total $4.51 billion compared to $3.70 billion for the same period in 2019. Revenue to the quarter rose 136% to close the fourth quarter at $1.40 billion (2019: $593.86 million).
Cost of Sales for the year increased 18%, closing at $2.81 billion, up from $2.38 billion reported the prior year.
As such, gross profit for the year end amounted to $1.70 billion, a 28% uptick when compared to $1.32 billion recorded last year. Gross profit for the quarter amounted to $654.37 million relative to $279.66 million booked for the fourth quarter of 2019.
Administrative expenses climbed by 23% for the year, to total $1.23 billion versus $1 billion in 2019, while selling and promotion expenses closed the financial year at $99.28 million (2019: $78.52 million). FTNA noted that, “this was directly attributable to the opening of our new flagship location at Waterloo Square, which accounted for most of the overall increase in expenditures for the fiscal year.”
As such operating profit saw a 50% increase to $367.61 million relative to $244.94 million booked a year ago.
Finance cost for the period totalled $155.37 million compared to the $8.33 million recorded for the prior year, while other income amounted to $51.65 million relative to $33.65 million booked in 2019. Management noted that the increase in ‘Other Income’ was, “due primarily to growth in in-store revenues and rentals.” While, for finance costs, FTNA highlighted that, “this was driven primarily by the addition of the Waterloo Square lease expenses, adoption of IFRS 16 in July 2019, and fair value losses in our Unit Trust investment of $23.1 million.”
This resulted in profit before taxation totalling $263.89 million compared to $270.27 million recorded last year, a 2% decline year over year.
Taxation credit for the period was $12.62 million versus a tax credit of $36.36 million for the previous year. As a result, Net Profit decreased by 10% to end the period at $276.51 million relative to $306.63 million recorded the prior financial year. Net profit for the quarter fell to $71.84 million compared to $101.95 million recorded for the similar quarter of 2019.
Earnings per share (EPS) for the period totalled $0.22 (2019: $0.25). EPS for the quarter amounted to $0.06 relative to $0.08 booked for the prior year’s corresponding quarter. The number of shares used in our calculations amounted to 1,249,374,825 units. FTNA’s stock price closed the trading period on August 28, 2020, at $4.98.
Balance Sheet at a glance:
As at June 30, 2020, total assets amounted to $3.15 billion, up $1.24 billion from $1.91 billion as at the previous year. The increase in total assets was as a result of the increase in ‘Cash and Cash equivalents’ and ‘Property, plant and equipment’, which closed the period by $599.26 million (2019: $382.74 million) and $769.84 million (2019: $700.89 million) respectively.
Shareholders’ Equity of $1.49 billion was reported (2019: $1.27 billion) which resulted in a book value per share of $5.40 (2019: $4.13).
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.