August 30, 2023
Financials for the year ended June 30, 2023: –
Fontana Limited (FTNA) for the year ended June 30, 2023 reported a 15% increase in Revenues totaling $7.32 billion compared to $6.34 billion in the corresponding period last year. Revenues for the fourth quarter had a 9% increase to close at $1.82 billion compared to $1.67 billion for the comparable quarter of 2022.
Cost of Sales amounted to $4.69 billion (2022: $4.08 billion), this represents a increase of 15% year over year. Consequently, gross profit increased by 16% to $2.63 billion compared to $2.26 billion for the year ended June 30, 2022. The company booked gross profit of $599.37 million for the fourth quarter versus $597.99 million reported for the similar quarter of 2022.
Administrative and Other Expenses increased by 24% to close at $1.78 billion (2022: $1.43 billion), while Selling and Promotion increased by 64% from $63.60 million in 2022 to $103.99 million in the period under review. As a result, total operating expenses for the year ended June 30, 2023 amounted to $1.88 billion, a 26% increase relative to $1.50 billion reported in 2022.
Operating Profit for the year ended June 30, 2023, amounted to $745.75 million, a 2% decrease relative to $762.12 million reported in 2022. Operating Profit for the fourth quarter amounted to $130.09 million (2022: $205.65 million). Finance and Policy Costs totalled $195.98 million a 10% decrease from the corresponding period last year. (2022: $217.07 million).
Profit before Taxation for the year ended June 30, 2023, amounted to $656.77 million, a 6% increase relative to $618.07 million reported in 2022. Profit before Taxation for the fourth quarter amounted to $98.97 million (2022: $203.53 million).
Taxation Charge for the year ended June 30, 2023 had a 85% increase to reach $1.57 million (2022: $10.36 million) . Net Profit for the year amounted to $655.20 million, a 8% increase from the $607.71 million reported in 2022. For the fourth quarter, Net Profit was $97.41 million (2022: $193.17 million).
Consequently, Earnings Per Share for the year amounted to $0.52 (2022: EPS: $0.49), while Earnings Per Share for the quarter totaled $0.08 (2022: EPS: $0.15). The number of shares used in these calculations was 1,249,374,825.
Notably, FTNA’s stock price closed the trading period on August 29, 2023 at a price of $11.03 with a corresponding P/E ratio of 21.03x.
Balance Sheet Highlights
As at June 30, 2023, total assets amounted to $5.13 billion, up $581.51 million from $4.55 billion as at the previous year. The increase in total assets was as a result of the increase in ‘Property, plant and equipment’ and ‘Inventories’ which closed the period with $1.13 billion (2022: $742.70 million) and $1.23 billion (2022: $991.86 million), respectively.
Shareholder’s equity was $2.44 billion (2022: $2.16 billion), representing a book value per share of $1.95 (2022: $1.73).
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