FosRich’s Improved Year-to-date Revenues Up 26% Attributed Primarily To Greater Availability Of Products Required By Market.
• Revenues – $746.4 million, up $154.1 million or 26% from $592.3 million in the prior period
• Gross Profit – $315.2 million, up $45.9 million or 17% from $269.3 million in the prior period
• Net Profit – $61.7 million, up $1 million or 2% from $60.6 million in the prior period • Earnings per stock unit – $0.12, flat for the current and prior period
• Revenues – $367.8 million, up $47.4 million or 17% from $320.4 million in the prior period
• Gross Profit – $156.1 million, up $14.7 million or 12% from $141.3 million in the prior period
• Net Profit – $28.8 million, down $1 million or 3% from $29.8 million in the prior period
• Earnings per stock unit – $0.06, flat for the current and prior period
FosRich Company Limited Managing Director Cecil Foster is reporting for the six months ended 30 June 2019 income of $746.4 million, compared to $592.3 million for the prior reporting period. An increase of $154.1 million.
Gross Profit for the year-to-date was reported at $315.2 million compared to $269.3 million for 2018, representing an increase of $45.9 million. These increases he reported were attributed primarily to the greater availability of the products required by the market.
Other income for the year-to-date benefitted from commissions earned on the JPS street lighting and other projects, amounting to $12.5 million.
During the second quarter the company generated income of $367.8 million compared to $320.4 million for the prior 2018 period, representing an increase of $47.4 million.
Gross profit for the quarter was $156.1 million compared to $141.4 million for 2018.
Administration expenses for the year-to-date was $233.2 million, reflecting an increase of $35 million on the prior reporting period amount of $198.2 million. This was driven by a combination of building out of their human resources expertise as they sought to build capacity for the future, as well as cost associated with the 25Th anniversary celebration of the company.
These included the addition of a Business and Relationship Manager, new General Manager, increased sales commission due to improved sales performance and improvements in staff benefits; increased legal and professional fees; increased selling and marketing costs; increased insurance costs and increased irrecoverable GCT.
Finance Cost Finance cost for the year-to-date was $43.8 million compared to $28.5 million for the prior reporting period, an increase of $15.3 million, driven by a new bond issue, obtained to assist with the financing of operations. This new facility was obtained at more favourable rates than the previous bank or line of credit facilities.
The Taxpayer Audit & Assessment Department also conducted an audit of the company’s 2016 Income Tax returns and are seeking to raise additional Income Tax. While they have agreed to most aspects of their findings, Fosrich is now in the appeal stage of the process in respect of some adjustments and have begun to make provisions to cover these additional taxes.
Profit-after-tax generated for the period was $61.7 million, compared to the $60.6 million reported for the prior reporting period.
The company continues to closely manage inventory balances and the supply-chain, with a view to ensuring that inventory balances being carried are optimised, relative to the pace of sales, the time between the orders being made and when goods become available for sale, to avoid both overstocking and stock-outs.
Two new categories of inventories have been introduced during the quarter for PVC raw material and PVC finished goods. Monitoring is done both at the individual product level and by product categories.
Industrial, LED, control devices, hardware, panels, wires and electrical lighting were the categories that reflected increases while solar and lighting were the inventory categories that reflected decreases.
The company he reported further continues to closely manage trade receivables with an emphasis being placed on balances over 180 days and has implemented strategies to collect these funds as well as to ensure that the other buckets are managed.
Non-current liabilities have remained stable for the year-to-date.
Shareholders’ equity now stands at $755 million, up from the $693.3 million at 31 December 2018. The net increase of $61.7 million arose as a result of retained profits for the year-to-date.
During the quarter they began PVC production with technical support from foreign engineers and also produced a total of 183 thousand assorted electrical conduits, water pipes and drain pipes. Interim production target is now 115 thousand per month.
Earnings per stock unit was $0.12 for both the current and prior period.