FSG registers increase in earnings

Staff Writer | Thursday September 23, 2010 00:00

Revenue increased by 4.8 percent to P22.3 million, with the coffin and Kagiso Funeral Parlour divisions reporting revenue increases of 10.9 percent and 2.7 percent respectively.

The company rolled out its expansion into the region with the completion of new division, FSG (Zambia) (premises including a coffin and casket assembly plant) in Zambia, which was launched during 2H10. The sale of a 30% shareholding in the division was also completed in 1H10.

'Management remains resolute that the company will continue to register satisfactory bottom-line growth, and continues to explore for expansion opportunities regionally,' said the company in a statement.

Cost of sales increased by 7.1 percent to P 5.9 million, bringing gross profit growth in line with revenue to P 16.3 million. The gross profit margin came in at 73.4 percent, representing a 549 basis points improvement from the second half of 2009.

Income from funeral package schemes offered in conjunction with Botswana Life Insurance increased by 23.1 percent to P10.6 million, largely driven by the introduction of new products in 2009. Profit before tax increased by 5.7 percent to P8.7 million; with the growth dampened by increases in marketing and administrative expenses, and a 133.3 percent increase in finance costs.

The company's tax expense declined by 23.7 percent to P1.6million, following a 710 basis points to 18.6 percent decline in the effective tax charge.

Profit after tax grew by 15.4 percent to P7.1 million, with the net margin improving by  31.8 percent. An interim dividend of P0.03 was declared, payable on 10 November 2010.