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Profit and expenses up for FosRich

Business reporter

Wednesday, November 13, 2019

Lighting, electrical and solar energy products company FosRich Limited reported on Friday (November 8), an unaudited net profit of $73.3 million for the nine-month period ended September 30, 2019.

This represents a three per cent increase when compared with the $71.0 million recorded in the corresponding period last year.

According to Managing Director Cecil Foster, for the period under review, the company achieved revenues of $1.2 billion, a 25 per cent increase when compared with the $945.9 million recorded in the corresponding period in 2018.

He further added that the company's gross profit for the nine-month period increased by 25 per cent, which was influenced by the greater availability of the products required by the market.

Other income for the year-to-date benefitted from commissions earned on the Jamaica Public Service's street lighting and other projects, amounting to $16.9 million.

The company's administration expenses for the period under review amounted to $394.0 million, reflecting an increase of $80 million on the prior reporting period, due to the combination of the building of FosRich's human resources expertise, the addition of new managerial positions, increased sales commission due to improved sales performance and improvements in staff benefits, increased legal and professional fees, increased selling and marketing costs, increased insurance costs and increased irrecoverable general consumption tax.

According to Foster, the company's finance cost for the nine-month period was $67.2 million, an increase of $24.6 million when compared to the $42.6 million recorded for the prior reporting period.

This increase is being driven by a new bond issue, obtained to assist with the financing of operations. Earnings per share for the period under review ended at $0.15, an increase compared with the $0.14 recorded in the prior corresponding period.