On the Ghana stock exchange
BOPP in Q1-2018 reported a profit after tax of GHS 3.12 million, representing a 43% decline from a profit of GHS 5.51 million recorded in Q1-2017. The dip in profits reported for the period was largely driven by a reduction in revenues which dipped by 19% from GHS 28.11 million in Q1-2017 to GHS 22.69 million in Q1-2018. The fall in the price of crude palm oil in the Q1-2018 stemming from its increased production by Malaysia and Indonesia and the relative strengthening of the Cedi against the dollar contributed in part to the fall in revenues recorded by BOPP. The company’s return on equity fell to 4.6% in Q1-2018 from 9% in Q1-2017. Its earnings per share declined from GHS 0.158 in Q1-2017 to GHS 0.090 in Q1-2018.
The company’s operating expenses increased by 7.5% from GHS 2.28 million in Q1-2017 to GHS 2.4 million in Q1-2018. BOPP’s current ratio which indicates its ability to cover short-term liabilities increased to 2.31 in Q1-2018 from 1.58 in Q1-2017. Its inventory turnover which measures the number of times its stocks were sold and replaced declined from 4.05 in Q1-2017 to 2.59 in Q1-2018. Its day sales outstanding which indicate the number of days it takes the company to receive cash on its credit sales rose to 84.38 days in Q1-2018 from 47.34 days in Q1-2017. Management must continue to improve its cost efficiency and boost its output to sustain its profits in the coming months as the price of palm crude oil may continue to be bearish stemming from the increased oil palm production by Malaysia and Indonesia and the expected relative stability of the Cedi against the Dollar which will significantly affect the company’s revenues.
In terms of its share price performance, BOPP has rewarded investors with a YTD return of 18.30%. BOPP is a dividend paying stock and has recently announced a dividend per share of 0.0628 for the 2017 financial year. BOPP gained GHS 0.05 on Monday to trade at GHS 7.24 following the dividend announcement. It is anticipated that the share price of BOPP will remain relatively stable and any movement in its share price will be driven in part by its earnings report for the subsequent quarters of the year.
The Composite index and the Financial stock index closed down at 3,462.83 and 3,185.54 to peg at a YTD return 34.23% and 37.87% respectively. There were 2 gainers [UNIL & GCB] and 8 losers [GOIL, GGBL, TOTAL, SCB, SOGEGH, CAL, FML & EGH]. GGBL topped the charts in terms of volumes as 224,000 shares worth GHS 560,000 changed hands.
On the Ghana Alternative Market
Trading activity on the Ghana Alternative Market was hushed as no shares changed hands.
On the Currency market
The Cedi appreciated marginally against the British Pound but lost to the Dollar and the Euro at the end of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.4120 to the USD, GHS 5.9520 to the GBP and GHS 5.2442 to the EURO at week close. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date appreciation of 0.39%.