On the Ghana Stock Exchange (GSE,) Gull year earnings report on UNIL showed a dip in total revenue over the 52 weeks.
The dip in revenue reflects the challenging operating business environment in the country in 2016. Revenue fell marginally by 4.3% to GHS 496,306,000 in 2016.
Despite the dip in total revenue, UNIL managed to record growth in its operational profits at the same time incurring less cost on Distribution and Advertising expenses.
Operating Profit increased by 6.72% to GHS 53,768,000 in FY2016. Annualized Earnings Per Share [EPS] increased from GHS 0.5714 in FY2015 to GHS 0.6730 in FY2016. Bottom Line Profits recorded by the company increased by 11.49%; from GHS 35,710,000 in FY2015 to GHS 39,814,000 in FY2016.
Earnings report will play a key role in the performance of stocks in 2017.
Positive earnings growth in Unilever Ghana should reflect positively on its share performance in the short term.
UNIL share price has an unlimited upside potential and with the improvement on the company’s fundamentals, the share price is expected to attract more investor interest. UNIL is a BUY.
Trading activity on the bourse ended with 6 gainers [BOPP, EGH, GCB, SCB, SOGEGH & TOTAL] yesterday. UTB topped trading chart again in terms of volume as 181,000 shares worth GHS 5,430.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 5.17% and 7.77% respectively.
Trading activity on the Ghana Alternative Market (GAX) was hushed yesterday as no shares changed hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
On the Currency market, The Cedi LOST marginally to all the major trading currencies yesterday.
The local currency exchanged at a mid-rate of GHS 4.2710 to the USD, GHS 5.3488 to the GBP and GHS 4.6073 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 2.55%.
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