QUARTER RESULTS: Fidson Healthcare, MRS Oil


FIDSON HEALTHCARE PLC: ONE LEGGED BATTLE

Fidson Healthcare PLC apparently fought market place battle in the quarter to March and ended standing on only one good leg: Income from other sources other than core business .
According to unaudited figures for the period, very healthy leap in Other income from N1.18m in 2015 first quarter to N15.3m had single handedly reversed 0.94% decrease in core revenue to N1217.4m to 0.21% increase in total income to N1232.7m.
Unfortunately, that turned out to be the lone really good news within the quarter.
First, instead of decreasing even if as marginally like core revenue, cost of sale rose by 0.81% to N570.4m
Then overheads increased by 2.6% to N462.4m  and finance charges gained 3.68% to N157.9m.
In the end. Fidson Healthcare stayed out of the loss league, no doubt, but with 31.6% drop in profit before tax to N41.9m from the marginal growth in total income.
In other words, gain on each N100 income came to N3.4 compared to N5.0 by March 2015.
The company's liquidity position also weakened a little bit as working capital dropped to N1949.8m due principally to almost unbearable rise in prepayments to N79.6m from N12.1m

FIDSON HEALTHCARE PLC: (Nm)
                       First quarter
                          2016.           2015
Total income 1232.7.         1230.1
Core revenue  1217.4.         1228.9
Cost of sale.   570.4.            565.8
Distribution etc 462.4.         450.7
Other income.     15.3.           1.18
Finance charges 157.8.       152.3
Profit b4 tax.         41.9.         61.3
Profit margin %    3.40.         5.0
Working capital  1949.8.    2224.7
Prepayments        79.6.         12.1

MRS OIL PLC: ONE MAJOR FOE

In the quarter to March 2016, MRS Oil Plc lost the battle with only one foe and it turned out to be the most powerful foe: Cost of sale.
Cost of sale is the main component of MRS Oil's cost pyramid. It ended the quarter 18.2% up at N23315.4m thus turning 17.5% increase in core revenue to N25071.1m into only 8.53% rise in gross profit to N1755.7m.
But not to worry, good cost control, fair increase in other income and nice leap in finance income helped MRS Oil into profit as against loss in 2015 first quarter.
The first good news was that overhead dropped by 4.24% to N207.9m  and administration cost increased by 13.6% to N1304.9m  well below income growth.
Then there was the twin good news from finance. Finance income rose to N169.5m from N61.7m while cost associated with it decreased by 87.9% to N167.6m.
The combination of these helped MRS oil to report N626.5m profit compared to N734.5m loss previously.
And despites reducing its overdraft by 8.56% to N15024.7m, working capital ended stronger at N7566.6m.

MRS oil PLC: (Nm)
                         First quarter
                         2016.           2015
Total income 25622.3.      21741.0
Core revenue 25071.1.      21339.1
Cost of sale   23315.4.      19721.4
Gross profit.    1755.7.       1617.7
Other income    381.7.         340.2
Distribution.      207.9.          217.1
Administration 1304.9.      1148.5
Finance income 169.5.         61.7
Finance cost       167.6.       1388.6
Profit before tax 626.5         (734.5)
Profit margin %   2.45.        (3.38)
Working capital 7566.6.    6891.7
Overdraft           15024.7.  16430.4

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