[upme_private]Vitafoam Plc released its 2013 6 months to March results with revenues rising 15% to N8.7billion (2012 H1: N7.6billion). Operating profit at the end of the period under review was N736million representing an operating profit margin of just 8.4% (2012 H1:7.8%). The company’s pre-tax profits at the end of the period was N585million 21% higher than the N484million posted same period last year. EPS therefore rose 16% to 50kobo
Key Highlights
Gross Profit Margin Improved slightly to 30% (29% 2012 Q1) a reflection of the company’s ability to fight off rising cost of raw materials
The rise in S,G&A expenses was 12.5% higher than prior period at N1.89billion suggesting rising operating cost as the company continues its retail presence across major cities in Nigeria.
The company is currently highly leveraged with debt covering 99% of Equity. However, it appears from the company’s cash flow statement it generates about N1.6billion in Ebitda (TTM) which I believe is enough to cover its debt obligations.
The short-term debts is made up of overdrafts of N900m and commercial paper of about N2billion.
The long term debt should be completely repaid at the end of the current financial year
The company’s return on average equity of 13% in line to achieve an annual return of 26% at the end of the year.
The company’s tax rate remains high at about 30% of PBT
The share price rose 5.4% to N3.48 at the end of the period. The share price has a current P.E of about 5x Trailing Twelve Months (TTM) EPS
Vitafoam has consistently paid dividend over the years.
Vitafoam Plc 2013 H1 results was posted on the website of the NSE.[/upme_private]
