Eterna Releases Earnings Forecast for Q1-2024
Eterna Plc (Ticker: ETERNA) has released its first quarter of financial year 2024 earnings forecast, according to its latest regulatory filling on the Nigerian Exchange.
Details show that the company is expecting its first quarter profit to settle at about N392 million despite large revenue estimated at N54 billion. A review of the company’s earnings forecast showed that its operation is highly cost intensive.
Its estimated costs of sales was more than N50 billion, leaving the company with about N2.6 billion as gross profit in the first quarter of 2024.
Unfortunately, large marking expenses laid additional substantial claim against the tiny gross profit in the period, its estimates showed. The company indicates it is going to spend N1.68 billion on marketing, distribution and administrative expenses in the period.
This left the company about N576 million as pretax profit in the period after it has cater for its interest payable and similar charge of more than N363 million. Nigeria Eurobond Slumps after CBN Resumes OMO Auction
Despite small profit in relation to strong topline, the company seems to be a cash king. It expects cash and cash equivalent at the end of Q1-2024 to print at N3.12 billion. Eternal Plc. market valuation settled at N17 billion after share price traded flat at N13.1 this week.
