Seplat Plc released its 2015 Q2 results showing a pre-tax profits before tax and exceptional items of N792 million representing an 83% drop from a quarter ago.
Highlights
2015 Q1 vs Q2
- Revenue dropped 9.2% to N23.1 billion compared to the same period last quarter.
- This was also second straight quarterly drop in revenue since June 2014
- Whilst the revenue drop had a negative effect on bottom line cost of sale had a more devastating effect.
- Seplat saw it cost of sale rise 40% to N15.9 billion slicing off about 69% of revenue compared to 45% same period last quarter.
- Finance cost however dropped 27% to N2.4billion but was not enough to stop pre-tax profits from dropping 83%.
- Seplat however got some boost after it booked gains from asset sale of about N2.5 billion.
- The sale help boost profit after tax to about N3.3 billion. However, this was still 32% short of the N4.8 billion reported in the first quarter of the year where it did not book any asset sale.
- Seplat also reported a 16% decrease in its cash this quarter spending about N16.6 billion in reducing its loans, paying dividends and investing in new assets
| Seplat | 2015 Q2 | 2015 Q1 | %age Change |
| N’m | N’m | ||
| Income Statement | |||
| Revenue | 23,199.00 | 25,562.00 | -9.2% |
| Cost of Sale | (15,982.00) | (11,386.00) | 40.4% |
| Gross Profit | 7,217.00 | 14,176.00 | -49.1% |
| S,G & A | (4,443.00) | (5,550.00) | -19.9% |
| Operating Profit | 2,774.00 | 8,626.00 | -67.8% |
| Other Income | 452.00 | (452.00) | -200.0% |
| Net Finance Cost | (2,434.00) | (3,348.00) | -27.3% |
| Profit Before Tax | 792.00 | 4,826.00 | -83.6% |
| Other Gains | 2,508.00 | – | |
| Taxation | (1.00) | 44.00 | -102.3% |
| Profit after Tax | 3,299.00 | 4,870.00 | -32.3% |
| Tax as a %age of Profits | 0.00 | (0.01) | |
| Indices | |||
| Earnings per share (N) | 5.96 | 8.80 | -32.3% |
| Outstanding Shares | 553.31 | 553.31 | 0.0% |
| Debt to Equity Ratio | 172.2% | 84.9% | 102.8% |
| Gross Profit Margin | 31.1% | 55.5% | -43.9% |
| Operating Profit Margin | 12.0% | 33.7% | -64.6% |
| Profit Margin | 14.2% | 19.1% | -25.3% |
| SGA as a %age of Gross Profit | 61.6% | 39.2% | 57.2% |
| Interest as a percentage of Operating Profit | 87.7% | 38.8% | 126.1% |