Seplat Shocks Investors with Worst Quarterly Result Since its IPO


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%
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