Intravenous Infusions Limited (IIL) managed to churn out a better performance for the year 2016 compared to prior year before listing on the Ghana Alternative Market (GAX).
Revenue of the company grew by 40.7% y/y; from GHS 7,529,883 in 2015 to GHS 10,596,009 in 2016. Revenue growth was largely driven by a 7.5% increase in sales volumes and a 200% reduction in exchange rate losses. Gross profit grew by 60.2% y/y to GHS 5,117,834. Total cost to-income ratio improved to 84.2% from 98.2% in 2015. Finance cost declined by 25.9% y/y; falling from GHS 689,952 to GHS 515,796 in 2016. Operating expenses however increased by 13.7% reflecting the expansion projects the company undertook in 2016.
Net Asset quality improved by 10.3% y/y, whereas Net Operating Assets improved marginally by 4.1% in 2016. Profit after Tax increased from a loss of GHS 519,638 in 2015 to GHS 669,945 in 2016; representing an increment of 228.9% y/y.
Outlook for the year 2017 for IIL remains bright. The company has embarked on various projects including expansion and increase of production capacity through the addition of a modern plant, 9 months after funding through the Private Placement Offer, launching new products under the Small Volume Injectables category to increase their contribution to 40% of total revenue for 2017, elimination of all forms of constrains to optimise plant capacity to increase the utilization from 40%to 75% thereby increasing market share in Ghana. Also, IIL seeks to re-establish its presence in Cote d’Ivoire, Burkina Faso, Togo, Benin and Nigeria to contribute 10% of turnover.
GN Analysts expect the turnaround of the company’s fortunes to positively impact the company’s share performance on the bourse. Liquidity on the stock will improve as more retail investors buy into the stock within the short term on the back of growing attractiveness on the market. IIL is a BUY for investors this year.
Trading activity on the Alternative Market ended with 60,000 shares of IIL valued at GHS 5,400.00 changing hands on the GAX.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
Trading activity on the bourse ended with 4 gainers (CAL, SCB, TOTAL and GOIL) yesterday. UTB topped the trading chart in terms of volume as 31,500 shares worth GHS 1,890.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 13.83% and 15.69 % respectively.
The Cedi LOST marginally to all the major trading currencies on the inter-bank market yesterday.
The local currency exchanged at a mid-rate of GHS 4.3387 to the USD, GHS 5.5496 to the GBP and GHS 4.8934 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 5.98%.
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