SOS reports 63% increase in six months net profits

Date: August 09, 2019

SOS reported six months revenue of $638.55 million relative to $519.21 million in 2018, a 23% increase, while for the second quarter revenues amounted to $295.08 million up 23% compared to the $240.03 million reported in the corresponding period of 2018.

Management noted that, “it should be noted that during this quarter the sales of Seek products continued to grow moving from $4.3M in sales for the quarter in 2018 to $13.7M in 2019, an increase of 220%.”

In addition, “during the 2nd quarter SOS also exported its second container for the year which was shipped to Antigua to furnish the offices for a new hotel being constructed in that island,” SOS highlighted.

The Company’s cost of sales totaled $316.39 million up 22% relative to the $259.62 million reported in 2018. Cost of sales, for the quarter, rose by 19% to $141.35 million (2018: $118.72 million). As a result, gross profit grew by 24% for the six months amounting to $322.16 million relative to the $259.59 million booked in 2018, while gross profit for the quarter totaled $153.73 million (2018: $121.31 million).

Administrative expenses totaled $157.61 million up 11% compared to the $142.37 million booked in 2018, while selling and promotion expenses grew by 9% closing the period at $48.33 million relative to the $44.45 million reported in 2018. For the quarter, Administrative expenses went up by 5% to $80.42 million (2018: $76.75 million), while selling and promotion expenses closed at $25.26 million (2018: $22.24 million), a 14% growth year over year.

The company’s depreciation cost amounted to $16.95 million an increase of 44% relative to the $11.76 million incurred in 2018, while finance cost closed at $7.75 million (2018: $4.70 million).

Profit before taxes grew by 63% amounting to $91.65 million relative to the $56.17 million earned in 2018. For the quarter, there was a pre-tax profit of  $34.12 million (2018: $11.62 million).

No income tax expense was incurred (2018: $60,000), as such net profit for the period totaled $91.65 million an increase of 63% relative to the $56.11 million reported in 2018. Net profit for the quarter amounted to $34.12 million, up from the $11.62 million earned in 2018.

Earnings per share for the period amounted to $0.37 (2018: $0.22), while EPS for the quarter totaled $0.14 (2018: $0.05). The twelve-month trailing EPS amounted to $0.51. As at August 08, 2019, the stock traded at $12.00.

Balance Sheet at a glance:

Total Assets increased by 12% to close at $876.05 million as at June 30, 2019 from $778.98 million the year prior. The growth stemmed from a 8% growth in Property, Plant & Equipment to $383.52 million (2018: $354.84 million). Trade and other receivables also contributed to the increase to close at $153.65 million relative to $107 million recorded twelve months earlier. Inventories rose 16% from $177.66 million in 2017 to $206.71 million in 2019.

Equity attributable to stockholders of the company as at June 30, 2019 stood at $573.74 million (2018: $459.86 million). This resulted in a book value per share of $2.29 (2018: $1.84).

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2019-08-09T17:19:13+00:00