Fidson 2013 9 Months Results ↑

Fidson 9 months 2013

 

Bua group

Fidson Nigeria Plc released its 2013 unaudited results showing YoY 30% rise in revenue to N7.7billion (2012 9 Months: N5.5billion. Gross Profit also rose 32% to N3.9billion as gross margins held sway at 57%. Operating profit at the end of the year was N730million 46% higher than same period last year. Pre-tax profits at the end of the period was N545million. [upme_private]

2013 Q1-Q3

Fidson 2013 Q1-q3

Key Highlights

  • The improved result over last years was basically a function of higher revenues
  • Even though they had negative revenue growth rate on a quarter on quarter basis this year, each quarter this year beat its corresponding quarter the year before.
  • The impact of its about N800million in new debts this year is being felt as finance cost rose year on year and also rose highest this quarter (July-Sept) to N83million.
  • Pre-tax profits this quarter also failed to match the profit posted in the first quarter. This also followed the trend in the second quarter, were profits dropped by a N100million
  • Operating expenses is stubbornly high at over 80% of Gross Profits. It is poor efficiency management by the company. It will be hard for shareholders to get any decent value at this rate.
  • The working capital of N2.8billion is a bit deceptive. Back off trade receivables, prepayments and inventories at it is a negative N2.1billion. Reason? Its cash pile is just N77million!!!
  • Fidson is in our portfolio and was purchased at an cost of N2.19. It currently trades at N2.15. 
  • Whilst the result was better than last year, our long term focus is how quickly the company can reduce its operating expenses as a percentage of Gross Profit to at least 70% next year, continue to grow revenues not just at a YoY basis but also on a QoQ basis as well as reduce its stubbornly high trade debtors.

Fidson 2013 9 Months result was released in the website of the NSE[/upme_private]

 

Coronation Research

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