Julius Berger Nigeria Plc (NSE – JBERGER) financial performance was strongly impacted in second quarter of 2020 by Covid-19 crisis, as the company reported a loss of over N2.00 billion between April to June, amid a significant drop in revenue. This is according to the consolidated unaudited financial statements for the period ended 30 June 2020, released by the company on Monday to the Nigerian Stock Exchange and the investing public.
According to the report, JBerger revenue for the first half of the year declined by 22.56% to N102.055 billion from N131.783 billion recorded in H1 2019. The company reported a Loss of N1.931 billion which represents 168.12% decline from a profit of N2.835 billion it reported in the same period in 2019.
The loss recorded in the First half is due to a loss of N2.343 billion posted JBerger in Q2 2020 (April to June) which was offset to some degree by the profit the company reported in Q1 2020.
A close look at the H1 report showed that, cost of sales consumed 81.74% of the revenue to the tune of N83.421 billion which leaves the company with a gross profit of N18.634 billion and a gross profit margin of 18.25%.
Jberger administrative expenses of N15.744 billion, gulped 84.49% of the gross profit, thus the remainder of the company gross profit could not finance other expenditures such as marketing expenses (N107.14 million), finance cost (N910.89 million), “other gains and losses” (3.102 billion) among others.
However, JBerger recorded a total comprehensive income of N9.202 million for the period in review largely due to “exchange difference on transaction of foreign operations” which amounted to N2.031 billion. The company’s basic EPS crashed to 1kobo in H1 2020 from N2.73 in H1 2019.
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A review of the balance sheet showed that the JBerger total assets slightly rose to N314.090 billion as at 30 June 2020 from N313.661 as at 31 December 2019.
Although Julius Berger reported negative net cash flows from its operating, investing and financing activities, the company’s cash and cash equivalents at the end of 30 June strongly improved in the first half of 2020 to N12.781 billion compared to minus N32.597 billion reported in the same period in 2019. This is because JBerger had cash and cash equivalent of N27.922 as at 1 January 2020.
Julius Berger is into the business of planning, design and construction of civil engineering and building works. The share price closed at N16.00 per share on Monday on the Nigerian Stock Exchange. The 52 week high and low prices are N27.50 and N15.50 respectively. YTD the share price is down by 14.32% while in 2 years and 5 years it has lost 31.80% and 62.59% of its value respectively.
Written by;
Ifunanya Ikueze
