Rising costs pressure marginsAmid the ongoing geopolitical tensions that have disrupted the global edible oil supply chain and given rise to a deficit in the supply of other rival oils, there has been renewed demand for CPO globally, and an attendant rise in the commodity’s price. Accordingly, the shortage has also translated to a hike in domestic CPO prices. As a result, PRESCO’s Q2’22 revenue rose by 63% y/y, consolidating H1’22 revenue at N41.7 billion (+94% y/y).Reopened borders may qu...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Operating success makes up for weak topline Presco’s Q420 results showed that revenue growth slowed to 10%YoY while cost of sales more than doubled over the same period. This combination meant that gross profit fell 33%YoY, its steepest decline since 2017, with gross margin also declining to its lowest level since 2014. Away from the topline, Presco cut its operating expenses by 47%YoY which helped lead EBIT higher by 10%YoY to N2.68 billion. PBT printed at N2.37 billion while PAT came in at ...
Presco released its H1’20 results recently, reporting an impressive 71% y/y jump in PAT to ₦4.4 billion in H1’20, significantly ahead of our ₦2.5 billion expectation. The earnings beat was driven by a stronger topline and effective cost containment in the recently concluded quarter. Revenue surged 63% y/y to ₦8.1 billion in Q2’20, taking H1’20 Revenue 29% higher y/y to ₦13.5 billion (Vetiva: ₦12.1 billion). As expected, Q2 topline benefitted from a surge in domestic CPO prices, brought...
Earnings moderate from high 2017 base PRESCO recently released Q1’18 results, reporting y/y declines across major profit lines. Notably, PAT over the 3-month period was down 33% y/y to ₦2.6 billion. The earnings decline was largely on the back of an 8% y/y drop in Revenue (₦6.6 billion) amidst higher operating costs over the period. We highlight that Q1’17 Revenue was a high base due to significantly higher Crude...
Eyeing volume growth to keep earnings resilient PRESCO recently released its FY’17 results showing mixed performance across major line items. In line with expectations, top line maintained the double-digit growth rate, up 42% y/y to ₦22.4 billion and slightly ahead of our ₦21.2 billion estimate. Despite trending lower over the course of the year, strong CPO prices remained the key driver of the top line growth even ...
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