COMMENTARY ON AUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 31ST DECEMBER 2008
QTR 4 2008 - RESULTS HIGHLIGHTS
-Group Turnover ahead of prior year by 20.9%
-Group operating profit grew by 24.2% over prior year to Gh¢ 5.4m
-Operating margin improved by 40 bps to 12.1% in 2008
-Positive results reflect drive to manage cost and improve portfolio mix
2008 Full year financial highlights | ||||
(All amounts are expressed in thousands of Ghana Cedis) | ||||
4th Quarter Group | Cumulative Group | |||
2008 | 2007 | 2008 | 2007 | |
45,028 | 37,233 | Turnover | 165,590 | 139,054 |
5,426 | 4,369 | Operating profit | 28,493 | 18,187 |
5,565 | 7,451 | Profit before tax | 29,768 | 13,167 |
4,872 | 6,820 | Profit / Loss after tax (including discontinued operations) | 29,300 | 12,440 |
12.1% | 9.9% | Operating profit margin | 17.2% | 13.1% |
10.8% | 9.8% | Profit / Loss after tax margin | 17.7% | 8.9% |
0.2772 | 0.3537 | Earnings per share (Annualised) Gh ¢ | 0.3564 | 0.1774 |
FINANCIAL PERFORMANCE – FULL YEAR
Group Turnover achieved was Gh¢ 165.6m representing 19.1% growth. Underlying consumer business delivered equally strong growth of 16.4.0 %. Growth was strong across all key categories and in line with plans.
Operating margin improved by 410 bps, from 13.1% to 17.2%. The underlying drivers for this achievement are improvements in our portfolio mix and the positive impact of our drive to manage cost and improve efficiencies.
Operating profit grew by 56.7% from Gh¢18.1m to Gh¢28.5m. Underlying Profit after tax is strong at Gh¢ 25.2m versus prior year of Gh¢ 17.3m
Better effective tax rate of 12.1% versus 14.4% in prior year, reflecting further improvement in mix and better plantations performance (Zero tax).
Cash generated from operations was Gh¢ 23.5m against Gh¢ 16.6m in 2007, representing an increase of 42%. The closing cash position was Gh¢ 19.9m versus prior year of Gh¢ 13.5m.
Strong performance by our Plantations business impacted positively on our performance.
Directors declared an interim dividend of Gh¢ 0.1005 per share which amounted to Gh¢ 6.3m
ACCOUNTING POLICIES
Accounting policies applied in the financial results are consistent with the policies adopted for the audited annual financial statement issued for the year ended 31 December 2008.
