Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
PRESCO Q2'20: Robust Sales Growth Spurs Earnings
#1
PRESCO Q2'20: Robust Sales Growth Spurs Earnings

Cardinalstone Research

Presco Plc (PRESCO) announced an over three-fold YoY growth in earnings per share to N2.7 in its Q2’20 unaudited results. The company’s performance was driven by robust sales numbers and improved cost management in the quarter
 
Some Highlights

  • PRESCO reported a 62.7% YoY increase in sales to N8.1 billion in Q2’20. The increase in sales may have reflected higher CPO prices and greater output. The latter may be related to the recent expansion in oil milling capacity (from 60 tons/hr to 90 tons/hr in Q1’20) 
 
  • Gross profit margin advanced by 6.36 ppts YoY to 64.5% in Q2’20 as the business managed to keep its cost of goods sold relatively contained (+37.9%) despite the spike in output. 
 
  • SG&A costs declined by 10.5% YoY to 1.2 billion as both administrative and selling & distribution expenses moderated in the quarter 
 
  • Finance cost fell by 23.3% YoY to N333 million. The decline follows a 7.5% YoY decline in the preceding quarter. The moderation in finance costs may be as a result of the recent accommodative measures of the CBN
 
  • Although cash generated from operations soared to N6.3 billion in H2’20 (from N4.8 billion in H1’19), a 273.2% YoY spike in loan repayment to N4.9 billion ensured that Presco’s cash balance (-N2.2 billion) remained negative

[Image: 1bf767da-7fb2-4448-b0c3-44415b8aa710.png]
[Image: b72c9413-a62e-426a-b07b-6aec5cd3ad06.png]
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)