Shares of Berger paint resumed trading after the Easter break on a positive note as prices reversed by 1.19 percent on the release of its first quarter results for the period 2019.
This is however after the stock recorded its third biggest fall last week by 9.19 percent a day before the Easter break on investor’s bargain hunting after prices hit its year to date highest level at N9.25.
Data collated from the Q1 financial statement of Berger Paint released Tuesday on the Nigerian stock exchange (NSE) market, showed a 20 percent growth in the company’s bottom line.
This was on the back of the company’s cost efficiency during the period under review despite a marginal decline in revenue by 1.08 percent.
Profit for the period stood at N84.43 million against N70.11 million recorded in Q1 2018. This improved the company’s profit margin to 11 percent from 9 percent recorded in Q1 2018.
During the period, cost of sales improved by 10 percent to N416.63 million against N461.78 million in 2018. This impacted on total cost recorded during the period. Total cost amounted to N689.05 million a decline by 8 percent in Q1 2019 to include Cost of sales, selling/distribution expenses and administrative cost.
Meanwhile, Berger paint incurred a whooping N4.4 million finance cost which eroded about 89 percent of its finance income of N4.96 million during the period. This saw net finance income dip 88 percent to N528 thousand from N4.36 million made in Q1 2018.
As at the end of trading on Tuesday, share price of Berger Paint stood at N8.50 returning N28.98 million to investors.
Year to date (YTD) analysis show that stock is currently down 1.16 percent. Also, the stock has lost 4.55 percent of its value returning negative to investors.
As reported by the company’s financial, earning per share grew 20 percent to 29 kobo from 24 kobo.
DAVID IBIDAPO
