Profits down for FosRich


Profits down for FosRich

Business reporter

Sunday, May 24, 2020

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Lighting , electrical and solar energy products company FosRich Limited on Tuesday last posted an after-tax profit of $4.8 million for the three-month period ended March 31, 2020, an 85 per cent decrease when compared with the previous corresponding period.

According to Managing Director Cecil Foster, in the company's unaudited financial statements, revenues for the period under review amounted to $448.8 million, up 19 per cent from $378.6 million in the prior corresponding period.

Administration expenses for the year-to-date was $145.6 million, reflecting an increase of $31.5 million on the prior reporting period amount of $114.1 million. The increases was driven primarily by staff-related expenses, increased sales commission due to improved sales performance, and increased selling and marketing costs.

Shareholders' equity for the three-month ended at $796.4 million, up from the $791.6 million recorded at December 31, 2019. The net increase of $4.8 million arose as a result of retained profits for the year-to-date.

However, Foster indicated that the prolonged COVID-19 pandemic increases the risk of economic slowdown, which may affect its performance.

“COVID-19 is a tragedy of currently unknowable proportions, bringing devastating consequences for individuals, families and communities far beyond its epicentre. The economic effects may become material for us, our suppliers, our customers and our financers. We continue to monitor and manage this risk,” he stated.

He added that despite staff shortages resulting from quarantine measures implemented by the Government, FosRich had kept all its stores open.

“We have adopted all of the safety measures being promulgated by the Government of Jamaica. We are cognisant that despite the challenges ahead within this operating space, that we have the right talents and leadership to deliver on our plans for the ensuing period. We will continue to execute on our plans to ensure that we remain competitive and deliver value solutions to our customers.”

Earnings per stock stood at $0.01, a decrease when compared with the $0.07 recorded in the prior corresponding period.

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