Par Value: 5/-
Closing Price: 5.20
Total Shares Issued: 90000000.00
Market Capitalization: 468,000,000
EPS: -30.77
PE: -0.169
A key provider of Cement and Cement products in Kenya for over 70 years.
East African Portland Cement reports HY Earnings through 31st Dec 2020 versus through 31st Dec 2019
HY Revenue 1.389511b versus 1.483572b
HY Cost of Sales [1.723828b] versus [1.797456b]
HY Gross Loss [334.317m] versus [313.884m]
Admin and Selling Expenses [540.541m] versus [1.074954b]
HY Loss from Operating Activities [836.656m] versus [1.383242b]
HY Loss Before Tax [1.105987b] versus [1.634979b]
HY Loss After Tax [1.035339b] versus [1.575403b]
HY EPS [11.36] versus [17.55]
Full Year Results through 30th June 2020
Full Year Revenue 2.474902b versus 2.847273b
Full Year Cost of Sales [3.300350b] versus [4.052555b]
Full Year Gross Profit [Loss] [825.448m] versus [1.205282b]
Full Year Other Operating Income 198.864m versus 1.691487b
Full Year Administration and Selling Expenses [2.501957b] versus [2.548586b]
Full Year Loss from Operating Activities [3.128541b] versus [2.062381b]
Fair Value Gain/[Loss] on Investment Property 1.114779b versus [233.204m]
FY Finance Costs [786.304m] versus [691.588m]
FY Loss Before Tax [2.798610b] versus [2.961898b]
FY Loss After tax [2.769610b] versus [3.361868b]
FY EPS [30.77] versus [37.35]
Conclusions
The Balance Sheet needs to be restructured
E.A Portland Cement Plc Audited Results for the Year Ended 30th Jun 2020. @tradingroomke
https://twitter.com/tradingroomke/status/1323144271004839937?s=20
East African Portland Cement Company HY 2020 results through 31st December 2019 vs. 31st December 2018
HY Revenue 1.483572b vs. 1.372146b +8.121%
HY Cost of sales [1.797456b] vs. [1.800132b] -0.149%
HY Gross profit [313.884m] vs. [427.986m] -26.660%
HY Other operating income 5.596m vs. 20.417m -72.591%
HY Administration and selling expenses [1.074954b] vs. [1.011450b] +6.279%
HY Interest income 1.282m vs. 1.372m -6.560%
HY Finance costs [253.019m] vs. [204.701m] +23.604%
HY [Loss]/ profit before tax [1.634979b] vs. [1.622348b] +0.779%
HY Tax [charge]/ credit 59.576m vs. 355.545m -83.244%
HY [Loss]/ profit after tax [1.575403b] vs. [1.266803b] +24.361%
EPS [17.55] vs. [14.23] +23.331%
HY Cash and cash equivalents as at 31st December [1.204195b vs [946.777m] +27.189%
No dividend
Performance
Sales revenue increased by 8% over the same period in the previous year in spite of challenging business environment marked by a general decline in selling prices. Administrative and selling expenses grew by6% driven by restructuring costs.
Total assets reduced by 4% due to reduction in other receivables. The company continued to stabilize on its restructuring agenda with utmost focus to effectively serve its customers efficiently.
The Board is optimistic that with the implementation of the Companys medium term plan, the Company will return back to profitability in the short run.
East African Portland Cement Company HY 2019 results through 31st December 2018 vs. 31st December 2017
HY Revenue 1.372146b vs. 3.062119b -55.190%
HY Cost of sales [1.800132b] vs. [2.916684b] -38.282%
HY Gross profit [427.986m] vs. 145.435m -394.280%
HY Other operating income 20.417m vs. 1.202m +1,598.586%
HY Administration and selling expenses [1.011450b] vs. [854.390m] +18.383%
HY Interest income 1.372m vs. 1.403m -2.210%
HY Finance costs [204.701m] vs. [313.492m] -34.703%
HY [Loss]/ profit before tax [1.622348b] vs. [1.145433b] -41.636%
HY Tax [charge]/ credit 355.545m vs. 175.860m +102.175%
HY [Loss]/ profit after tax [1.266803b] vs. [969.573m] -30.656%
EPS [14.23] vs. [10.55] -34.882%
HY Cash and cash equivalents as at 31st December [946.777m] vs. [899.419m] -5.265%
No dividend
Company Commentary
PERFORMANCE
The first half of the year reflected a difficult business environment on the backdrop of increased input prices, a sluggish market as well as production challenges arising from a tight EAPC PLC working capital position. This affected the ability of the company to effectively provide the product sufficiently to all its customers. Consequently, sales revenue declined by 55% over the same period in the prior year leading to an increase of 66% in loss from operating activities. The Company expects to continue reaping from reductions in administrative expenses driven by the ongoing staff rationalization and outsourcing of non core administrative services.
Finance costs declined by 53% owing to restructuring of financing facilities. The current liabilities exceeded current assets by Kshs 7.3 billion (June 2018 Kshs 6 billion). The board is aggressively pursuing balance sheet restructuring to effectively address the negative working capital. Relevant consultations and approvals to recapitalize the business have been obtained.
FUTURE OUTLOOK
Future market outlook remains positive with the unveiling of the Big Four Agenda by the National Government where affordable housing and manufacturing were among the top priorities. The competitive environment is expected to result in subdued cement prices in the near future. Revenue enhancement and cost optimization will therefore remain key focus objectives as the Company continues to leverage on its brand to weather competitive pressure. Despite the depressed results, the Board remains confident in realization of its turnaround efforts and takes cognizance of Government support in concretizing initiatives in sourcing for working capital. The Company is further reorganizing its strategy and structure to reengineer the business in order to improve performance, cost rationalization and efficiency. This is geared towards reduction of the high Finance and Administrative costs and stabilization of the value chain processes in order to enhance efficiency and ultimately the Companys competitive position.
The Board is optimistic that with the implementation of the Companys medium term plan, the Company will return back to profitability.
East African Portland Cement PLC FY 2018 results through 30th June 2018 vs. 30th June 2017
FY Revenue 5.182721b vs. 6.928307b -25.195%
FY Cost of sales [5.272608b] vs. [6.165496b] -14.482%
FY Gross [Loss]/ profit [89.887m] vs. 762.811m -111.784%
FY Other operating income 398.235m vs. 21.527m +1,749.933%
FY Inventory provisions written back vs. 183.277m -100.000%
FY Administration and selling expenses [3.867255b] vs. [2.283898b] +69.327%
FY [Loss] from operations [3.558907b] vs. [1.316283b] +170.376%
FY Interest income 2.831m vs. 2.136m +32.537%
FY Finance costs [845.278m] vs. [617.017m] +36.994%
FY FX Currency gains 21.233m vs. 134.018m -84.157%
FY Fair value gain on investment property 11.342244b vs. 84.243m +13,363.723%
FY Profit/ [Loss] before tax 6.962123b vs. [1.712903b] +506.452%
FY Profit/ [Loss] after tax 7.797547b vs. [1.471361b] +629.955%
Basic and diluted EPS 86.64 vs. [16.35] +629.908%
FY Total Assets 38.027520b vs. 27.357388b +39.003%
FY Cash and cash equivalents as at 30th June [1.025651b] vs. [1.879276b] -45.423%
No dividend
East African Portland Cement Company HY 2018 results through 31st December 2017 vs. 31st December 2016
HY Revenue 3.052119b vs. 3.722059b -17.731%
HY Cost of sales [2.916684b] vs. [3.074533b] -5.134%
HY Gross profit 145.435m vs. 647.527m -77.540%
HY Other operating income 1.202m vs. 0.340m +253.529%
HY Administration and selling expenses [1.001027b] vs. [1.062116b] -5.752%
HY [Loss]/ Profit from operating activities [854.390m] vs. [414.250m] -106.250%
HY FX [Losses]/ gains 21.046m vs. 186.241m -88.700%
HY Finance costs [313.492m] vs. [307.308m] +2.012%
HY [Loss]/ Profit before tax [1.145433b] vs. [533.698m] -114.622%
HY [Loss]/ Profit after tax [969.573m] vs. [248.121m] -290.766%
EPS [10.55] vs. [2.43] -334.156%
HY Cash and cash equivalents as at 31st December [899.419m] vs. [1.502873b] +40.153% No dividend
Company Commentary
Revenue declined by 18% due to slow market uptake on account of prolonged political activity which dampened investment decisions and thus slowed down economic activities.
Further impacted by knock on effects of interest rates capping and prolonged drought
increases in cost of coal and unit cost of electricity adversely affected cost of sales.
Gross profit margin declined from 18% in the prior period to 5%
Given tat the company has enormous resources in the form of idle and fully mined parcels of land, Board expects to be granted the necessary approvals to generate value from these idle parcels of land.
Conclusions
Its a Real Estate Play.
East African Portland Cement Company FY 2017 results through 30th June 2017 vs. 30th June 2016
FY Revenue 6.928307b vs. 8.871456b -21.903%
FY Cost of sales [6.165496b] vs. [7.283948b] -15.355%
FY Gross profit 762.811m vs. 1.587508b -51.949%
FY Other operating income 21.527m vs. 78.768m -72.670%
FY Provisions written back 183.277m vs.
FY Administration and selling expenses [2.283898b] vs. [3.250847b] -29.745%
FY [Loss] from operating activities [1.316283b] vs. [1.584571b] -16.931%
FY FX [Losses]/ gains 134.018m vs. [305.706m] +143.839%
FY Fair value gain on investment properties 84.243m vs. 6.238797b -98.650%
FY Finance costs [617.017m] vs. [618.125m] -0.179%
FY [Loss]/ Profit before tax [1.712903b] vs. 3.734752b -145.864%
FY [Loss]/ Profit after tax [1.471361b] vs. 4.145755b -135.491%
EPS [16.35] vs. 46.06 -135.497%
FY Total Assets 27.357388b vs. 27.842120b -1.741%
FY Total Equity 16.890983b vs. 17.946760b -5.883%
FY Cash and cash equivalents as at 30th June [1.879276b] vs. [1.440899b] -30.424%
No dividend
Company Commentary
Sales Revenue for the year reduced by 22% driven by production challenges and downward pressure on retail prices due to excess supply.
Cost of Sales reduced by 15% on account of volume reduction and curtailment of unwarranted rebates or discounts.
drop in the gross profit margin to 11% compared to 18% last year
Administrative expenses reduced by 30% as a result of a one off inventory adjustment charge incurred in the prior year coupled with cost management initiatives
current excess capacity which exceeds demand, downward pressure on cement prices is projected to prevail in the short to medium term.
Shareholders have come together and are agreeable to a recapitalisation plan with one earmarked option being phased or instant cash injection from the sale of assets including idle and fully mined land which is subject to Government approval
Conclusions
Poor results. Signalling further softness. However, NAV is considerably North of the share price.
H1 Revenue 3.722059b vs. 4.620517b -19.445%
H1 Cost of sales [3.074533b] vs. [3.767486b] -18.393%
H1 Gross profit 647.526m vs. 853.031m -24.091%
H1 Other operating income 0.340m vs. 34.648m
H1 Administration and selling expenses [1.062116b] vs. [1.167360b] -9.016%
H1 [Loss]/ profit from operating activities [414.250m] vs. [279.681m] -48.115%
H1 Foreign exchange [losses]/ gains 186.241m vs. [187.595m] +199.278%
H1 Finance costs [307.308m] vs. [279.680m] +9.878%
H1 [Loss]/ profit after tax [248.121m] vs. [528.259m] -53.030%
H1 EPS [2.43] vs. [5.91] -58.883%
Total Equity 17.728178b vs. 17.946760b -1.218%
Cash & cash equivalents as at 31st December [1.502873b] vs. [372.098m] -303.892%
No interim dividend
Conclusions
Core business continues to deteriorate.
However its Land rich.
Full Year Results through 30th June 2016
FY Revenue 8.871456b versus 8.417621b +5.39%
FY Cost of Dales 7.283948b versus 6.591115b +10.511%
Gross Profit 1.587508b versus 1.826506b -13.084%
FY Other Operating Income 78.768m versus 208.751m
FY Expenses [3.250847b] versus [2.612836b] +24.41%
Other Operating Expenses [1.015803b] versus [347.202m]
FY Loss from Operations [1.584571b] versus [0.577759b]
FY Finance Costs [618.125m] versus [369.327m]
FY Exchange [Loss] Gain [305.807m] versus 178.834m
Gain on Land compulsorily acquired by Government for SGR 0 versus 836.962m
Fair Value Gain on Investment Property 6.238797b versus 7.273113b
FY PBT 3.734752b versus 7.342071b -49.13%
FY PAT 4.145755b versus 7.157070b -42.074%
FY EPS 46.06 versus 79.52
Conclusions
The Cement business served up a -1.584b loss for the FY 16.
The Fair Value Gain on Investment Property was worth +6.238b
The East African Portland Cement Company H1 2016 results through 31st December 2015 vs. 31st December 2014
H1 Revenue 4.620517b vs. 4.127869b +11.935%
H1 Cost of sales [3.767486b] vs. [3.501890b] +7.584%
H1 Gross profit 853.031m vs. 625.979m +36.272%
H1 Other operating income 34.648m vs. 182.379m -81.002%
H1 Administration and selling expenses [1.167360b] vs. [1.208075b] -3.370%
H1 [Loss]profit from operating activities [279.681m] vs. [399.717m] -30.030%
H1 Foreign exchange [losses]gains [187.595m] vs. 233.493m -180.343%
H1 Finance costs [279.680m] vs. [186.849m] +49.682%
H1 [Loss]profit before tax [745.025m] vs. [124.442m] +498.693%
H1 [Loss]profit after tax [528.259m] vs. [67.848m] +678.592%
H1 EPS [5.91] vs. [0.73] +709.589%
H1 Total assets 24.134452b vs. 23.112582b +4.421%
Cash and cash equivalents as at 31st December [0.372098b] vs. [1.269911b] -70.699%
Commentary
The first 6 months to 31st December 2015 recorded +16% increase in sales volumes over prior period
Gross Profit Margin improved to 18%
Finance costs increased by 50%
Foreign Exchange Loss in the period was 188m. Yen Loan refers
Issues a Full Year Profits Warning
https://rich.co.ke/media/docs/EAPCC%20Ltd.-%20Unaudited%20Results%20for%20the%20six%20months%20period%20ended%2031st%20December%202015.pdf
Co. will record a lower income for the full year ending 30th June 2016 as the unrealised Fair Value gain on Investment Property and the Gain on disposal of Land will not recur this financial Year
Conclusions
The Yen denominated Loan has created a material FX Impairment.
FY Revenue 8.417621b vs. 9.057292b -7.06%
FY Cost of sales [6.591115b] vs. [6.661720b] +1.06%
FY Gross profit 1.826506b vs. 2.395572b -23.75%
FY Other operating income 208.751m vs. 300.029m -30.42%
FY Selling and distribution [453.733m] vs. [511.731m] +11.33%
FY Administration and establishment [1.811901b] vs. [1.935930b] +6.41%
FY Other operating expenses [347.202m] vs. [340.895m] -1.85%
FY Expenses [2.612836b] vs. [2.788556b] +6.30%
FY Profit [Loss] from operation [577.579m] vs. [92.955m] -521.35%
FY Interest income 4.068m vs. 1.427m +185.07%
FY Finance costs [369.327m] vs. [318.941m] -15.798%
FY Exchange gain on foreign currency loan 174.834m vs. 36.769m +375.49%
FY Gain on land compulsorily acquired by the Government for SGR 836.962m vs.
FY Fair value gain on investment property 7.273113b vs.
FY Profit [Loss] for the year 7.157070b vs. [0.386631b] +1,951.14%
FY Total comprehensive income for the year 7.172418b vs. [0.385582b] +1,960.15%
FY EPS 79.52 vs. [4.30] +1,949.30%
FY Total Assets 23.112582b vs. 15.717257b +47.05%
FY Cash and cash equivalents at the end of the year [424.117m] vs. [384.569m] -10.28%
Conclusions
101.6% of the Full Year Profit originated from a Fair Value gain in investment property
Trades on a Trailing PE of less than 1
Full Year Earnings through 30th June 2014
Full Year Revenue 9.057292b versus 9.211462b
Full Year Cost of Sales [6.661720b] versus [6.878139b]
Full Year Gross Profit 2.395572b versus 2.333323b
Full Year Other Operating Income 300.029m versus 93.376m
Full Year Administration and Selling Expenses [2.788556b] versus [2.085768b]
Full Year Profit and Loss from Operating Activities [92.955m] versus 340.931m
Full Year Finance Costs [318.941m] versus [311.612m]
Full Year Exchange Gains on Forex Loan 36.769m versus 594.113m
Full Year Fair Value Gain on Investment Property 0 versus 730.046m
Full Year Profit before Tax [373.700m] versus 1.419478b
Full Year Profit after Tax [386.631m] versus 1.775383b
Full Year Earnings Per Share [4.30] versus 19.73
No Dividend
Company Commentary
adversely impacted by the difficult trading environment that was characterised by price competition, high staff costs and a weakening Shilling.
Administrative costs increased by 700m due to increase in staff costs driven by restructuring management and staff compensation in line with job evaluation and an increase in staff gratuity all amounting to 400m above the prior year Paid 200m following arbitration in relation to disputed contracts In the coming year company plans to spend 2.5b in new investments Market likely to see declining prices for the forseeable Future
Conclusions
Poor Results
First Half Earnings through 31st December 2013 versus 6 months through 31st December 2012
First Half revenue 4.567292b versus 4.549385b
First Cost of Sales [3.247919b] versus [3.204266b]
First Half Gross Profit 1.319373b versus 1.345119b
First Half Other operating income 126.428m versus 42.447m
First Half Administration and selling expenses [1.260462b] versus [1.000298b] +26.008%
First Half Profit from operations 185.339m versus 387.268m
First Half Finance Income 130.630m versus 158.750m
First Half Finance Costs [144.939m] versus [169.498m]
First Half Profit before Tax 171.030m versus 376.520m -54.576% First Half Full Year Profit after Tax 183.460m versus 327.193m -43.92%
First Half Earnings per share 2.03 versus 3.68 -44.83%
Fair Value of Loan Swaps 177.504m versus 148.692m [Portland benefits from a weaker Yen]
No Interim Dividend
Conclusions
soft earnings with a +26.008% spike in Admin and Selling Expenses taking a big bite.
Lots of Talk around the Value of Real Estate which could be sold to make EAPC debt free and have some left over.
It is this chatter which has seen EAPC rally 36.49% through 2014 upto March.
FY Through June 2013 versus FY Through June 2012
FY Turnover 9.211462b versus 8.508120b +8.266%
FY Cost of Sales [6.878139b] versus [7.391003b] -6.939%
FY Administration and Selling Expenses [2.085768b] versus [2.031536b]
FY Profit from Operating Activities 340.931m versus [793.714m]
FY Exchange gains on Forex Loan 594.113m versus [61.574m] Portland is heavily correlated to @AbeShinzos Abenomics and a weak Yen
Fair Value on Investment Property 730.046m
FY Profit Before Tax 1.419478b versus [1.032914b]
FY Profit After Tax 1.775383b versus [972.715m]
FY Earnings Per Share 19.73 versus [10.81]
FY Dividend 75cents a share
Conclusions
Strong Turnaround Numbers. Portland is heavily correlated to Shinzo Abes Abenomics and a weaker Yen as evidenced in the 594.113m FX Gain and represented 41.85% of the FY Profit Before Tax.
much improved Numbers.
H1 Earnings through 31st December 2012 versus H1 through December 2011
H1 Revenue 4.549385b versus 4.952435b
Cost of Sales [3.204266b] versus [4.062310b]
Gross Profit 1.345119b versus 0.890125b
Other Operating Income 42.447m versus 5.443m
Admin and Selling Expenses [1.000298b] versus [1.126259b]
H1 PBT 376.52m versus [247.201m]
H1 PAT 327.193m versus [376.634m]
H1 EPS 3.63 versus [4.18]
Forex Gain of 145m. [They have a Yen Loan and therefore should be Cheerleaders of Abenomics]
Conclusions
Strong Turn Around Results.
They booked a Forex Gain via a Yen Loan that is on the Books and therefore They must be cheerleaders of Abenomics.
FY Through 30th June 2012 versus FY through 30th June 2011
Full Year Revenue 8.614806b versus 10.172140b -15.309797%
Cost of Sales [7.391003b] versus [7.803463b]
Gross Profit 1.223803b versus 2.368677b
Other Operating Income 120.705m versus 175.046m
Administration and Selling Expenses [1.954987b] versus [1.890083b]
Profit [Loss] from Operating Activities [0.610479b] versus 0.653640b
Finance Income 108.365m
Finance Costs [0.347565b] versus [0.782674b]
FY Profit Before Tax [0.849679b] versus [0.119059b] -613.66%
FY Profit After Tax [0.821486b] versus 1.717m
FY Earnings Per Share -9.09 versus +0.02
Cash Generated from Operating Activities [-0.209211b] versus +0.603628b
Cash and Cash Equivalents at at 30 June -244.766m
No Dividend
Commentary
Referring to Disturbances that broke out in December 2011 which caused Industrial Unrest and led to Plant Shutdown in January 2012.
Citing the Decline of the Shilling in the 2nd Half of 2011 as raising the Landed Cost of Coal and Clinker.
Conclusions
The Tape is Your Telescope said Edwin Lefevre in his Seminal Book Reminiscences of a Stock Market Operator.
The Tape Reads
Full Year Revenue -15.309797%
FY Profit Before Tax -613.66%
FY Earnings Per Share -9.09 versus +0.02
Cash and Cash Equivalents at at 30 June -244.766m
No Dividend
H1 Dec 2011 versus H1 Dec 2010 Swot Analysis
Revenue 4.952435b versus 5.243458b
Administration and Selling Expenses 1.107279b versus 0.730721b
Profit Before Tax -175.406m versus 254.954m
Earnings per Share -0.98 versus 8.81
Commentary
Major Plant break Down in November 2011
They expect Earnings to be down at least 25% FY which is a Profits Warning.
Conclusions
Its utterly dysfunctional. |
