Produce Buying Company Keeps Profits Buoyant

The country�s largest buyer of cocoa beans, Produce Buying Company (PBC), has recorded an unprecedented high profit after tax of GH�27.655million as against GH�14.112million of the previous year, showing an increase of 96 percent.

According to the company�s financial result for the year 2010/11, the net profit after tax constituted 58.4 percent after tax return on capital employed.

�With this current impressive performance, the company looks into the future with hope and optimism.

�The board and management will continue to explore the needed opportunities to improve its operational capacities and enhance its human resource base to achieve higher level of profitability in the ensuing years,� Mr. Joseph Osei Manu, Deputy Managing Director, Finance & Administration, told the Business and Financial Times.

He disclosed that the company�s total revenue increased from GH�632.902million to GH�1.302billion, a significant increase of 105.7 percent mainly due to increase in the quantity of cocoa purchased, producer price paid to farmers, buyer�s margin to Licenced Buying Companies as well as the freight earnings from its secondary evacuation activities.

PBC�s balance sheet also showed a strong growth and resilient financial position as shareholders equity rose by 100.5 percent, from GH�23.625million to GH�47.374million.

The total company assets grew by 62 percent from GH�169.031million to GH�274.338 million. The growth in asset was mainly led by inventory, trade and other receivables as well as property plant and equipment which grew by 21.87 and 26 percent respectively.

PBC�s basic earnings per share (EPs) increased by 95.9 percent from GH�0.0294 in the previous year to GH�0.0576 -- indicating improvement of shareholders� earnings arising out of the company�s activities during the year, while returns on capital employed (ROCE) also increased slightly from the previous year�s figure of 57.8 percent to 58.4 percent.

The price/earning (P/E) ratio has also reduced slightly from the previous year figure of 4.76 to 4.34.

Source: B&FT