February 15, 2021
Fontana Limited (FTNA), for the six months ended December 31, 2020 recorded a 15% increase in revenues to total $2.66 billion compared to $2.32 billion for the same period in 2019. Revenue for the 2nd quarter went up by 10% to $1.54 billion (2019: $1.40 billion).
Cost of Sales for the period increased 16%, closing at $1.64 billion, up from $1.42 billion reported the prior year, while for the second quarter there was a 13% increase closing at $920.42 million (2019: $814.26 million).
As such, gross profit for the six months amounted to $1.02 billion, a 13% uptick when compared to $900.33 million recorded last year. However, gross profit for the second quarter rose by 7% from $583.92 million to $621.92 million for the corresponding period in 2019.
Administrative expenses had a marginal decrease for the period, to total $617.36 million versus $619.14 million in 2019, while selling and promotion closed the six months at $48.01 million (2019: $57.08 million).
As such operating profit saw a 57% increase to $351.46 million relative to $224.11 million booked a year ago. Operating profit for the second quarter ended December 31, 2020 rose 31% to $266.29 million (2019: $203.93 million).
Finance Cost for the six months totalled $86.08 million, a 123% increase when compared to the $38.66 million recorded for the same period last year, while other income amounted to $28.42 million relative to $27.59 million the prior year.
This resulted in profit before taxation of $293.79 million compared to $213.04 million recorded last year, a 38% rise year over year. For the second quarter profit before taxation moved from $194.67 million in 2019 to $248.57 million in 2020.
There was no taxation charge for the six months period ended December 31, 2020, therefore, net Profit increased by 38% to end the period at $293.79 million relative to $213.04 million recorded the prior financial year. Net profit for the quarter amounted to $248.57 million, a 28% increase compared to $194.67 million booked for the prior quarter of 2019.
Earnings per share (EPS) for the period totalled $0.24 (2019: $0.17). EPS for the second quarter amounted to $0.20 (2019: $0.16). The twelve months trailing earnings per share amounted to $0.29. 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 12, 2021, at $ 6.02 with a corresponding P/E of 21.05 times.
Balance Sheet at a glance:
As at December 31, 2020, total assets amounted to $3.41 billion, up $86.85 million from $3.32 billion as at the previous year. The increase in total assets was as a result of the increase in ‘Cash and cash equivalents’ which closed the period at $822.79 million (2019: $599.78 million), reflecting a 37% year over year increase.
Shareholders’ Equity of $1.69 billion was reported (2019: $1.43 billion) which resulted in a book value per share of $1.35 (2019: $0.14).
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