Wema Bank Backed Juli Plc Keeps Uptrend
Without so many people noticing, Ticker: Juli has been making an uptrend and what caught stock analysts’ attention is that the supposed cheap stock is getting expensive already.
Food/Drug retailer Juli Plc has been capping gain of about 10%, up from N1.22 to N2.13. In the last seven trading sessions, it sustained positive price movement despite highs and lows moment in the local bourse.
Who owns the company? Wema Bank is a major investor in Juli Pharmacy, controlling 30% of the company’s shareholding. It follows that Prince Julius Adelusi-Adeluyi, OFR, mni controls 28.63% while Midas Investment & Property Limited own 8.53%.
It is currently trading through an alternative securities market, meaning that Juli Pharmacy has strong growth potential and could be moved to the NGX growth board based on performance.
After its price re-rating, Juli Pharmacy’s market value has increased to about N426 million with shares outstanding of about 200 million.
The pharmaceutical company’s turnover grew to N288.777 million in 2023, according to its regulatory filing. This represents an increase of 13.64% year on year when compared with N254.1 million revenue posted in 2022.
Its gross profit settled at about N96 million in the period, which was 8.5% above N88.461 million in 2022. A fast increase in costs of sales dragged the company’s profit margin lower in 2023, its financial statement posted on the Nigerian Exchange showed.
Juli Plc’s gross profit margin declined to 33.21% in 2023 from 35% in 2022 as costs of sales accelerated faster than revenue growth. The company ended the year with more than N6.7 million loss after tax, which happened to be an improvement from a post-tax loss of N11.068 million 12 months earlier.
A deep dive into the company’s numbers showed that management efforts at reducing overhead have not started to pay off. Operating expenses remain a bigger drain to healthy bottom-line performance.
In 2023, the company’s operating expenses surged by 3% to N102.6 million from N99.529 million in 2022. The Company was incorporated on 14th September 1972 as a private limited liability Company under the name of Juli Pharmacy ( Nigeria) Limited. #Wema Bank Backed Juli Plc Keeps Uptrend
