FTNA reports 33% increase in six months net profit

Date: February 14, 2022

Fontana Limited (FTNA), for the six months ended December 31, 2022 recorded a 20% increase in revenues to total $3.78 billion compared to $3.16 billion for the same period in 2021. Revenue for the second quarter went up by 15% to $2.13 billion (2021: $1.85 billion).

As such, gross profit for the six months amounted to $1.43 billion, a 23% uptick when compared to $1.16 billion recorded last year. However, gross profit for the second quarter rose by 17% to $836.95 million from $717.28 million for the corresponding period in 2021.

Administrative expenses had an increase for the period, to total $888.97 million versus $697.86 million in 2021, while selling and promotion closed the six months at $65.78 million (2021: $36.86 million).

Despite this, operating profit saw a 11% increase to $471 million relative to $423.86 million booked a year ago. Operating profit for the second quarter ended December 31, 2022 rose 6% to $346.48 million (2021: $325.75 million).

This resulted in profit before taxation of $411.39 million compared to $309.96 million recorded last year, a 33% increase year over year. For the second quarter profit before taxation moved from $248.84 million in 2021 to $323.81 million in 2022.

There was no taxation charge for the six months period ended December 31, 2022, therefore, Net Profit increased by 33% to end the period at $411.39 million relative to $309.96 million recorded the prior financial year. Net profit for the quarter amounted to $323.81 millionmcompared to $248.84 million booked for the prior quarter of 2021.

Earnings per share (EPS) for the period totalled $0.33 (2021: $0.25). EPS for the second quarter amounted to $0.26 (2021: $0.20). The twelve months trailing earnings per share amounted to $0.57. The number of shares used in our calculations amounted to 1,249,374,825 units. FTNA’s stock price closed the trading period on February 13, 2023, at $ 8.51 with a corresponding P/E of 15.03 times.

Balance Sheet at a glance:

As at December 31, 2022, total assets amounted to $5.00 billion, up $206.44 million from $4.80 billion as at the previous year. The increase in total assets was as a result of the increase in ‘Inventories’ which closed the period at $1.29 billion (2021: $999.17 million).

Shareholders’ Equity of $2.45 billion was reported (2021: $1.99 billion) which resulted in a book value per share of $1.96 (2021: $1.59).


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