FTNA reports 85% increase year end net profit

September 13, 2021

Fontana Limited recorded a 14% increase in revenues to total $5.15 billion compared to $4.51 billion for the same period in 2020. Revenue to the quarter rose 18% to close the fourth quarter at $1.66 billion (2020: $1.40 billion).

Cost of Sales for the year increased 14%, closing at $3.20 billion, up from $2.81 billion reported the prior year. As for the quarter cost of sales amounted to $1.02 billion (2020: $747.54 million).

As such, gross profit for the year end amounted to $1.95 billion, a 15% uptick when compared to $1.70 billion recorded last year. Gross profit for the quarter amounted to $643.64 million relative to $654.37 million booked for the fourth quarter of 2020.

Administrative expenses increased by 1% for the year, to total $1.24 billion versus $1.23 billion in 2020, while selling and promotion expenses closed the financial year at $55.67 million (2020: $69.31 million).

As such operating profit saw a 63% increase to $648.43 million relative to $397.59 million booked a year ago.

Finance cost for the period totalled $167.23 million compared to the $185.34 million recorded for the prior year, while other income amounted to $60.18 million relative to $51.65 million booked in 2020.

This resulted in profit before taxation totalling $541.38 million compared to $263.89 million recorded last year, a 105% increase year over year. While for the quarter, profit before taxation amounted $306.75 million (2020: $19.41 million).

Taxation for the period was $29.05 million versus a tax credit of $12.62 million for the previous year. As a result, Net Profit increased by 85% to end the period at $512.33 million relative to $276.51 million recorded the prior financial year. Net profit for the quarter rose to $277.69 million compared to $71.84 million recorded for the similar quarter of 2020.

Earnings per share (EPS) for the period totalled $0.41 (2020: $0.22). EPS for the quarter amounted to $0.22 relative to $0.06 booked for the prior year’s corresponding quarter. The number of shares used in our calculations amounted to 1,249,374,825 units.  FTNA’s stock price closed the trading period on September 10, 2021, at $5.92 with a corresponding P/E of 14.44 times.

Balance Sheet at a glance:

As at June 30, 2021, total assets amounted to $3.47 billion, up $321.75 million from $3.15 billion as at the previous year. The increase in total assets was as a result of the increase in ‘Cash and Cash equivalents’ and ‘Inventories’, which closed the period at $859.23 million (2020: $599.26 million) and $835.76 million (2020: $650.60 million) respectively.

Shareholders’ Equity of $1.81 billion was reported (2020: $1.49 billion) which resulted in a book value per share of $1.44 (2020: $1.19).


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