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).
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