Presco Plc, the Nigerian Oil Palm extraction giant released its Q3 2012 results with revenues increasing 20% year on year to N6.8billion. Third quarter income slightly missed the company’s estimate adding N2.2b in the three months preceding September 2012 as against the N2.4b in projected in its earnings forecast. They have projected another N2.4b in revenue for the next three months leading to December, a result that might see revenue rise 9% this financial year compared to the last. Operational Profit for the period is N2.6b an impressive 39% of income. Interest is low coming just above 7% of operational profit. It seems though that their Belgium owners have been able to keep operational expenses under 35% of Gross Profit a feat most managers of Nigerian companies find difficult to achieve.
The company’s net assets of N15b is 58% of total assets and 10 times its external debts providing a strong capital structure to build upon. Cash flow from operations remain strong at N4.8b an increasing of 236% over the same period last year. Negative cash flow at the end of the period may arouse some feathers but that is only misguided as the company spent 63% (over N3b) of its cash from operations on investments.
Presco shares average N14 dropping 6.5% over the last one week. But it has risen 80% over the last one year indicative of its appetite to investors over the period.
Presco Plc Q3 2012 unaudited results is posted on the website of the NSE