FBI lifts dividend on higher profit

Alkis Hadjikyriakos (Frou-Frou) Biscuits, the island’s largest biscuits, chocolate and cereals manufacturer and importer/distributor announced an increase in its final dividend to 0.37 cent per share for 2005 from 0.36 cent per share in 2004 following the announcement of better results.

Based on the CSE price of 13.5 cent per share, the dividend yield amounts to 2.85%, while since the start of the year, the stock is up 19%, three notches better than the CSE GENX performance.

FBI reported total turnover of CYP 12.1 mln, basically unchanged compared to 2004 with gross profit margins declining to 44.27% from 44.89% due to intense competition in the market.

Other income was up at CYP 425k from CYP 121k a year ago, boosted by CYP 174.000 in income from revaluation of real estate for investments gains, additional dividend income and CYP 33.000 from the sale of goodwill of a shop. Total income amounted to CYP 5.83 mln from CYP 5.56 mln a year ago.

Operational costs were kept under control and actually fell to CYP 1.33 mln from CYP 1.45 mln, sales & distribution expenses were flat at CYP 2.97 mln from CYP 2.9 mln and finance costs fell sharply to CYP 238k from CYP 319k and finance income amounted to CYP 200k from CYP 220k.

Pretax profit were up 35% y/y at CYP 1.49 mln from CYP 1.1 mln in 2004 while net profit after tax were up CYP 1.300.840 in 2005 compared to CYP 1.016.221 in 2004. Earnings per share amounted to 1.45 cent from 1.13 cent in 2004.

Book value per share according to company announcement was 23.24 cent from 20 cent per share. The average age of debtors fell to 80 days from 91, the average age of creditors was up at 92 days from 89 in 2004 while the average stock age was down at 81 days from 103 days in 2004. FBI further announced that its free working capital was CYP 2.87 mln from CYP 2.08 mln previously.