Cost of sales margin for the year jumped 116% year-over-year to J$12.28 billion
Despite the onset of COVID-19 pandemic and all the attendant restrictions on travel, social engagements and general business activity, Jamaican listed retail petroleum provider FESCO has seen its profit swelled during the 2021-2022 financial year.
The management admitted that the financial year ended March 2022 was a challenging but FESCO exceeded its performance for the year. FESCO recorded pre-tax profit of J$257.88 million, an 83 per cent increase from the J$140.78 million booked in 2020-2021.
Pretax profit for the March 2022 quarter closed at J$87.09 million compared to profit before tax of J$48.55 million in the previous comparable quarter. The retail petrol company incurred taxation of J$4.24 million for the period under review relative to $32.62 million for 2020-2021, resulting in net profit and comprehensive income of J$253.64 million versus the J$108.16 million booked twelve months earlier.
For the March 2021 quarter, FESCO recorded a net profit of J$82.85 million compared to a profit of J$38.14 million for the corresponding quarter in 2021. Operating profit for the year under review was J$254.95 million compared to J$134.69 million documented in 2020-2021.
Big jump in revenues
Revenues jumped 116 per cent moving from J$5.86 billion in 2020-2021 to J$12.67 billion for the period in review. For the March 2022 quarter, FESCO’s revenues rose to J$4.66 billion from the J$1.51 billion booked March 31, 2021, an increase of 210 per cent.
The cost of sales margin for the year ended March 31, 2022 remains unchanged at 97 per cent, resulting in a 116 per cent year-over-year increase to J$12.28 billion (2021: J$5.66 billion). As a result, gross profit increased to J$391.22 million (2021: J$194.82 million).
Within the quarter, FESCO recorded cost of sales of J$4.52 billion, which tripled relative to the $1.46 billion booked in the same quarter last year. As such, the fourth quarter’s gross profit totaled J$145.22 million, reflecting an increase of 192 per cent year over year (2021: J$49.66 million).
Operating and administrative expenses amounted to J$133.94 million, up from J$59.37 million reported in 2021. Finance income fell by 52 per cent to close at J$2.94 million versus the J$6.09 million booked twelve months earlier.
FESCO, as at March 31, 2022, recorded ‘Total Assets’ of J$2.79 billion (2021: J$551.49 million), a 407 per cent increase year over year. The increase was attributed mainly to increases of J$1.06 billion and J$882.28 million increase in “Cash and cash equivalents’ and ‘Property, Plant and Equipment’ which closed at J$1.13 billion (2021: J$72.62 million) and J$1.14 billion (2021: J$256.17 million), respectively.
Shareholders’ equity totaled J$770.59 million (2021: J$318.42 million), resulting in a book value per share of J$0.31 (2021: J$0.13).