Beta Glass has reported quarterly financial results with net income dropping 23.22%, revenue spiking 13.33%, cost-of-sales margin increasing to 76.72%, and gross margins decreasing to 22.11%.
Beta Glass of Nigeria plc reported that its net income in the three months through March 2014, dropped 23.22% to NGN 479.79 million from NGN 625.25 million a year earlier, according to a statement of the Nigerian Stock Exchange.
The company was however able to boost top-line performance as revenues spiked by 13.33% to NGN 3.91 billion in the first quarter (Q1 2014) from NGN 3.44 billion as of Q1 2013.
Cost-of-sales margin increased to 76.72% in 2014, from 73.9% in 2013, as cost-of-sales surged 18.57% to NGN 3 billion.
Gross margins decreased to 22.11% in 2014, as against 26.51% in 2013, which highlights the need for better management of direct material.
Net margin, a measure of profitability and efficiency, also dipped to 8.77% in Q1 2014, compared with 12.98% as of Q1 2013.
Beta Glass total assets reduced by 1.82% to N26.67 billion in Q1 2014, compared with NGN 27.16 billion as of Q1 2013.
The current ratio, which measures the ability of a company to meet its short-term obligations when due, was 1.90x, below the 2.1x industry average.
Trade and other receivables were up by 15.51% to NGN 14.0 billion in 2014, from NGN 12.11 billion.
This also suggests management tighten its credit policy to reduce money owned it by customers; this will boost revenue.
The fixed asset turnover highlights the effectiveness of the company in generating turnover from investment in assets. The total asset turnover in the period was 0.14 times, meaning the company is under-utilising its assets to generate sales.
The company was incorporated in 1974, and is based in Lagos, Nigeria.
Beta Glass is a subsidiary of Frigo Glass Industries (Nigeria) Limited. Nigeria, with a population of over 170 million and a growing middle class, Beta Glass has enormous opportunities to tap into and also boost both top-line and bottom-line performances.
The company’s share price closed at NGN 16.59 on the floor of the NSE, while market capitalisation was NGN 8.30 billion.