February 15, 2024
Fontana Limited (FTNA) for the six months ended December 31, 2023, reported a 9% increase in Revenues totalling $4.13 billion compared to $3.78 billion in the corresponding period last year. Revenues for the second quarter had a 10% increase to close at $2.35 billion compared to $2.13 billion for the comparable quarter of 2022.
Cost of Sales amounted to $2.57 billion (2022: $2.35 billion), this represents an increase of 9% year over year. Consequently, gross profit increased by 9% to $1.56 billion compared to $1.43 billion for the six months ended December 31, 2022. The company booked gross profit of $953.48 million for the second quarter versus $836.95 million reported for the similar quarter of 2022.
Administrative and Other Expenses increased by 21% to close at $1.08 billion (2022: $888.97 million), while Selling and Promotion decreased by 40% from $65.78 million in 2022 to $39.23 million in the period under review. As a result, total operating expenses for the six months ended December 31, 2023, amounted to $1.11 billion, a 17% increase relative to $954.75 million reported in 2022.
Operating Profit for the six months ended December 31, 2023, amounted to $442.12 million, a 6% decrease relative to $470.99 million reported in 2022. Operating Profit for the second quarter amounted to $361.27 million (2022: $346.48 million).
Finance Costs totalled $107.46 million a 1% decrease from the corresponding period last year. (2022: $108.14 million).
No taxes were reported in the periods under review. As such, Net Profit for the six months amounted to $402.46 million, a 2% decrease from the $411.39 million reported in 2022. For the second quarter, Net Profit was $341.08 million (2022: $323.81 million).
Consequently, Earnings Per Share for the six months amounted to $0.32 (2022: EPS: $0.33), while Earnings Per Share for the quarter totalled $0.27 (2022: EPS: $0.26). The twelve month trailing EPS was $0.52, and the number of shares used in these calculations was 1,249,374,825.
Notably, FTNA’s stock price closed the trading period on February 15, 2024, at a price of $10.39 with a corresponding P/E ratio of 20.09x.
Balance Sheet Highlights
The company’s assets totalled $5.75 billion (2022: $5.00 billion). The growth in total assets was particularly driven by a 76% uptick in ‘Property, plant & equipment’ to $1.28 billion (2022: $730.12 million).
Shareholder’s equity was $2.72 billion (2022: $2.45 billion), representing a book value per share of $2.18 (2022: $1.96).
Disclaimer:
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.