CAP PLC: MORE CAPS.

It was a case of more caps of honour for CAP PLC in 2015 but more for being more efficient in distributing and selling its products with help from non-core business income.
From the audited results released recently, revenue barely grew  but in spite of higher increase in  cost of sale and cost of administration, CAP PLC ended 2015 with higher profit margin.
Core revenue had increased by only 1.34% to N7080.9m  with the growth in total income at 2.38% to N7369.7m being a bit higher because of Other income rise by 13.9% to N59.9m and 44.4% increase in finance income to N228.9m.
Finally the 28.1% drop in selling and distribution costs to N377.1m  upgraded performance to the extent that 10.4% increase in administration cost to N929.6m could not stop CAP PLC from recording profit growth ahead of the increase in revenue.
The year's profit was N2570m, up 5.24% on 2014's N2442.1m.
Decoded: CAP PLC ended 2015 with a more solid 34.9% profit margin compared to 33.9% previously.
From the N1739.6m profit after tax thus reported, the directors are recommending 120k per share final dividend payable to shareholders in its register by May 27
SO:
* If in 2016 administration cost can not be caged, matching sales growth will do fine.
* Gradually finance income is growing to be major contributor to total income and so long as liquidity position allows, this is welcome.
CAP PLC ( Nm)
                         2015.              2014
Total income 7369.7.           7198.7
Core  income 7080.9.           6987.7
Gross profit.   3588.0.           3597.7
Selling Distr.    377.1.              524.8
Other income.    59.9.                52.6
Fin. Income.     228.9.              158.5
Profit b4 tax   2570.0.          2442.4
Profit margin %  34.9.              33.9
Working cap.  1080.1.            750.1

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