Julius Berger Nigeria Plc (NSE Ticker: JBERGER) reported a dismal financial performance for the 9 Months period ended 30 September, 2020. The financial statements released on The Nigerian Stock Exchange, and seen by Investogist, show that the Company’s Profit After Tax dropped by 137.30% when compared to the same period in 2019.
Revenue in the 9 month period from Jan-Sep 2020 reduced by 12.41%, to N168.418 billion, against N192.271 billion reported in 2019.
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N165.148 billion (98%) of JBERGER’s revenue for the period in review was recorded in Nigeria, while the remainder, N3.289 billion was made from Europe & Asia. In the same period in 2019, N186.167 billion revenue was booked in Nigeria while N6.103 billion was booked in Europe & Asia.
The major products/services contribution to JBERGERS revenue for the 9 Months period are;
- Civil works: The company made a revenue of N88.182 billion from civil works, contributing 52.36% to the overall revenue. In the same period in 2019, it made a revenue of N100.683 billion from civil works.
- Building works: 42.35% of the company’s revenue came from Building works, where it booked a revenue of N71.338 billion. This lower than the N81.439 billion booked last year.
- Services: The service line brought in N8.889 billion, 5.29% of the total revenue. In the preceding period in 2019, Services accounted for 5.28% of total revenue with N10.148 billion.
The Gross Profit declined by 28.44% to N29.708 billion down from N41.515 billion recorded in 9M 2019, as the company saw its cost of sale declining at a disproportionate rate when compared with the rate of decline in revenue. The Gross Profit Margin declined from 21.59% to 17.64%.
The administrative expenses also reduced by 24.82% from N29.293 billion in 2019 to N22.024 billion.
It’s Operating Profit declined by 68.62% to N4.100 billion from N13.067 billion recorded in the preceding year, as the reduction in revenue without proportionate reduction in expenses began to show its effect.
The company recorded Foreign exchange acquisition loss of N3.575 billion in 9M 2020, this dragged its Profit before tax into negative; minus N996.490 billion. There was no Foreign exchange acquisition loss in 2019, and it’s Profit before tax then was N7.503 billion.
Despite a 70.15% reduction in the Finance Cost from N6.163 billion in 2019 to N1.839 billion in 2020, the company went on to report a 137.30% drop in profitability.
JBERGER went from a Profit After Tax of N5.312 billion in 9M 2019, to a Loss After Tax of N1.981 billion.
A review of the consolidated unaudited statement of cashflows for the period show that the company did not generate cash from any of its business activities;
- Net cash used in operating activities: minus N21.801 billion (9 Months 2019: minus N6.825 billion)
- Net cash provided by investing activities: minus N6.569 billion (9 Months 2019: N5.400 billion)
- Net cash used in financing activities: minus N3.516 billion (9 Months 2019: minus N3.922 billion)
- Cash and cash equivalent at 30th September 2020: minus N3.965 BILLION (9 Months 2019: minus N17.613 billion)
Highlights of the Income statement and Statement of financial position;
About the Company
Julius Berger Nigeria Plc was incorporated as a private limited liability Company on 18 February 1970. The Company subsequently converted to a public liability company in 1979 with its shares quoted on the Nigerian Stock Exchange.
Julius Berger is into the business of planning, design and construction of civil engineering and building works.
JBERGER has 1,584,000,000 outstanding ordinary shares and a market capitalization of N27.720 billion.
Its 52 week high price is N22.92 while its 52 week low price is N14.90. The stock price at the end of the last trading session on the NSE is N17.50.
By; Nnamdi M.
