FTNA reports 6% increase in six months net profit

Date: March 04, 2022

Fontana Limited (FTNA), for the six months ended December 31, 2021 recorded a 19% increase in revenues to total $3.16 billion compared to $2.66 billion for the same period in 2020. Revenue for the second quarter went up by 20% to $1.85 billion (2020: $1.54 billion).

Cost of Sales for the period increased 22%, closing at $2.00 billion, up from $1.64 billion reported the prior year, while for the second quarter cost of sales recorded a 24% increase closing at $1.14 billion (2020: $920.42 million).

As such, gross profit for the six months amounted to $1.16 billion, a 14% uptick when compared to $1.02 billion recorded last year. However, gross profit for the second quarter rose by 15% to $717.28 million from $621.92 million for the corresponding period in 2020.

Administrative expenses had an increase for the period, to total $697.86 million versus $617.36 million in 2020, while selling and promotion closed the six months at $36.86 million (2020: $28.88 million).

Despite this, operating profit saw a 14% increase to $423.86 million relative to $370.59 million booked a year ago. Operating profit for the second quarter ended December 31, 2021 rose 17% to $325.75 million (2020: $277.83 million).

Finance Cost for the six months totalled $146.09 million, a 39% increase when compared to the $105.27 million recorded for the same period last year, while other income amounted to $32.20 million relative to $28.47 million the prior year.

This resulted in profit before taxation of $309.96 million compared to $293.79 million recorded last year, a 6% increase year over year. For the second quarter profit before taxation moved from $248.57 million in 2020 to $248.84 million in 2021.

There was no taxation charge for the six months period ended December 31, 2021, therefore, net Profit increased by 6% to end the period at $309.96 million relative to $293.79 million recorded the prior financial year. Net profit for the quarter amounted to $248.84 million, a marginal increase compared to $248.57 million booked for the prior quarter of 2020.

Earnings per share (EPS) for the period totalled $0.25 (2020: $0.24). EPS for the second quarter amounted to $0.20 (2020: $0.20). The twelve months trailing earnings per share amounted to $0.42. The number of shares used in our calculations amounted to 1,249,374,825 units. FTNA’s stock price closed the trading period on April 20, 2022, at $ 10.55 with a corresponding P/E of 24.94 times.

Balance Sheet at a glance:

As at December 31, 2021, total assets amounted to $4.80 billion, up $1.38 billion from $3.41 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 $1.72 billion (2020: $822.80 million), reflecting a 109% year over year increase.

Shareholders’ Equity of $1.99 billion was reported (2020: $1.69 billion) which resulted in a book value per share of $1.59 (2020: $1.35).




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