Eterna Plc has reported a substantial increase in revenue for the first half of 2024, with figures reaching ₦147.53 billion, a 112.76% jump from ₦69.34 billion recorded in the same period last year. Despite this impressive growth, the company continues to face challenges, including significant foreign exchange losses and rising finance costs, which have impacted overall profitability.
Thank you for reading this post, don't forget to subscribe!The cost of sales for the period rose by 114.04% to ₦130.07 billion, up from ₦60.77 billion in H1 2023, resulting in a gross profit of ₦17.46 billion, a 103.70% increase from the previous year. However, the gross margin declined slightly to 11.8% from 12.4% in H1 2023, indicating increased cost pressures.
Operating profit saw a significant rise, with a 166.43% increase to ₦12.92 billion from ₦4.85 billion in the previous year. Despite this, the company faced a substantial foreign exchange loss of ₦14.46 billion, a 47.50% increase from the ₦9.80 billion loss recorded in H1 2023. This, coupled with a sharp rise in finance costs by 229.06% to ₦2.03 billion, contributed to a net finance cost of ₦16.49 billion, up by 58.73% from the previous year.
As a result, Eterna Plc recorded a pre-tax loss of ₦3.57 billion, which is an improvement from the ₦5.54 billion loss in H1 2023. The company’s after-tax loss also narrowed to ₦4.84 billion, a 17.85% decrease from the ₦5.89 billion loss recorded in the same period last year. Basic earnings per share (EPS) improved to a negative ₦3.71, compared to a negative ₦4.51 in H1 2023.
On the balance sheet, Eterna Plc’s total assets increased by 20.77% to ₦72.03 billion as of June 30, 2024, up from ₦59.64 billion at the end of 2023. This growth was driven by a significant increase in trade and other receivables, which surged by 272.74% to ₦31.97 billion. However, cash and cash equivalents declined by 47.04% to ₦3.65 billion, reflecting the company’s liquidity challenges.
Total liabilities also increased by 30.68% to ₦73.36 billion, up from ₦56.14 billion in December 2023. Notably, trade and other payables doubled, increasing by 101.92% to ₦23.66 billion, while borrowings rose by 10.65% to ₦47.84 billion.
Eterna Plc’s share price currently stands at ₦19.0, with a 52-week high of ₦28.2 and a low of ₦11.15. The company’s market capitalization is ₦24.8 billion, and its price-to-earnings ratio remains negative at -5.12x, reflecting the ongoing financial pressures faced by the firm.
Overall, while Eterna Plc has shown strong revenue growth, the impact of foreign exchange losses and rising costs continues to weigh heavily on its financial performance.
