NTHC Research FEATURE BENSO OIL PALM PLANTATION LIMITED (BOPP) Benso Oil Palm Plantation Limited was incorporated on January 22, 1976 jointly by Unilever plc and the Government of Ghana (GOG) as a private company limited by shares to produce Crude Palm Oil (CPO) in Ghana. The company was converted into a public limited liability and listed on the Ghana Stock Exchange in 2004 after the Government of Ghana had divested its stakes in the company. Unilever Ghana Limited took over the 58% equity interest that Unilever Plc held and in 2012, Wilmar International, an Asian agribusiness giant through its African subsidiary, Wilmar African Limited acquired 77.97% of the entire issued shares of BOPP, making them the majority and controlling shareholder of BOPP. The Company’s core business includes growing of oil palm and other agricultural products, processing of oil palm fruits to produce palm oil and palm kernels and dealing and trading in palm oil, palm kernels and other agriculture products. A look at the financial performance of Benso Oil Palm Plantation Limited showed a mixed performance over the last five years in the top and bottom line indicators. The period saw a consistent growth in Total Revenue from GHS19.37 million in 2010 to GHS40.84 million in 2012 before slipping to GHS35.44 million by the end of 2013. In 2014, the top line indicator of the company grew once again to GHS52.16 million. Similarly, BOPP’s Net Profit position increased from GHS2.67 million in 2010 to GHS13.41 million in 2012, declined to GHS5.81 million in 2013 and then bounced back to GHS12.29 million in 2014. This signifies growth of 169.36% and 360.68% in the top and bottom line indicators respectively, over the five-year period. The 2015 half-year financial results released by BOPP once again shows a mixed performance compared to the 2014 half-year. The period recorded Total Revenue of GHS30.61 million compared to GHS29.63 million earned in 2014. This represents a marginal increase of 3.31% in the company’s turnover. Cost of Sales and Administrative Expenses also increased by 16.40% and 25.71% respectively, while Other Income went up by 85.58% during the period. This resulted in a 42.45% decline in the company’s Operating Profit from GHS6.92 million to GHS3.98 million by the end of the 2015 half-year. After incorporating Finance Income of GHS0.50 million and Tax Expenses of GHS0.13 million, BOPP’s Net Profit for the period amounted to GHS4.36 million, indicating a fall of 39.00% from GHS7.15 million in 2014 half-year. Subsequently, the company’s Earnings per Share (EPS) decreased from GHS0.2054 in 2014 half-year to GHS0.1253 by the end of 2015 half- year. The performance of BOPP on the Ghana Stock Exchange mirrors the mixed performance of the company since its listing in August 2004. From an initial price of GHS0.56, the stock rose gradually amidst several fluctuations to close July 2008 at GHS1.30. Thereafter, the stock recorded a free-fall in its price to end 2009 at GHS0.48. In 2010, 2011, 2012 and 2013, the stock recorded year-to-date appreciations of 56.25%, 46.67%, 27.27% and respectively. Since 2014, BOPP’s price has risen gradually, hitting an all-time high of GHS5.01 on 12 th May, 2015. The equity’s price has however declined marginally by GHS0.81 to transact at GHS4.20 as at 21 st August, 2015. Income Statement (All figures are stated in thousands of Ghana Cedis Dollars) 2012 2013 2014 2015 Q2 Revenue 40,839 35,438 52,164 30,607 Total Operating Expenses 28,359 30,628 40,262 26,624 Operating Profit 12,480 4,810 11,902 3,983 Net Profit(Loss) 13,406 5,806 12,291 4,360 *Financial statement figures for 2012 have been restated. Balance Sheet Summary (All figures are stated in thousands of Ghana Cedis) 2012 2013 2014 2015 Q2 Total Assets 43,261 45,925 57,663 65,754 Total Liabilities 2,726 2,264 2,874 9,062 Total Equity 40,535 43,661 54,789 56,692 Ratios/Statistics 2012 2013 2014 2015 Q2 Profit Margin (%) 32.83 16.38 23.56 14.25 Return on Assets (%) 30.99 12.64 21.32 6.63 Return on Equity (%) 33.07 13.30 22.43 7.69 Earnings Per Share (GHS) 0.3852 0.2225 0.3532 0.1253 Dividend Per Share (GHS) 0.0770 0.0334 0.0706 Net Assets Per Share (GHS) 1.1648 1.2546 1.5744 1.6291 Share price High (GHS) 1.78 3.85 4.10 4.10 Low (GHS) 1.10 1.40 2.30 5.01 Close (GHS) 1.40 3.21 4.10 5.00 Investor Ratios 2014 2015 Q2 Price to Book Value 2.60 3.07 Price Revenue Ratio 2.74 5.68 Price Earnings Ratio 11.61 39.91 Dividend Yield (%) 0.02 Year-to-date Return (%) 27.73 21.95 Price Information Year Opening Price (GHS) 01.01.15 Week Opening Price (GHS) 17.08.15 Current Price (GHS) 21.08.15 Weekly Change (GHS) Weekly Change (%) Year To Date (%) 0.2973 0.2994 0.2986 0.0008▼ 0.27▼ 0.44▲ Issue 064 Week Ending 21 st August, 2015 Market Review
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NTHC Research
FEATURE
BENSO OIL PALM PLANTATION LIMITED (BOPP) Benso Oil Palm Plantation Limited was incorporated on January 22, 1976
jointly by Unilever plc and the Government of Ghana (GOG) as a private
company limited by shares to produce Crude Palm Oil (CPO) in Ghana. The
company was converted into a public limited liability and listed on the
Ghana Stock Exchange in 2004 after the Government of Ghana had divested
its stakes in the company. Unilever Ghana Limited took over the 58% equity
interest that Unilever Plc held and in 2012, Wilmar International, an Asian
agribusiness giant through its African subsidiary, Wilmar African Limited
acquired 77.97% of the entire issued shares of BOPP, making them the
majority and controlling shareholder of BOPP.
The Company’s core business includes growing of oil palm and other
agricultural products, processing of oil palm fruits to produce palm oil and
palm kernels and dealing and trading in palm oil, palm kernels and other
agriculture products.
A look at the financial performance of Benso Oil Palm Plantation Limited
showed a mixed performance over the last five years in the top and bottom
line indicators. The period saw a consistent growth in Total Revenue from
GHS19.37 million in 2010 to GHS40.84 million in 2012 before slipping to
GHS35.44 million by the end of 2013. In 2014, the top line indicator of the
company grew once again to GHS52.16 million. Similarly, BOPP’s Net Profit
position increased from GHS2.67 million in 2010 to GHS13.41 million in
2012, declined to GHS5.81 million in 2013 and then bounced back to
GHS12.29 million in 2014. This signifies growth of 169.36% and 360.68% in
the top and bottom line indicators respectively, over the five-year period.
The 2015 half-year financial results released by BOPP once again shows a
mixed performance compared to the 2014 half-year. The period recorded
Total Revenue of GHS30.61 million compared to GHS29.63 million earned in
2014. This represents a marginal increase of 3.31% in the company’s
turnover. Cost of Sales and Administrative Expenses also increased by
16.40% and 25.71% respectively, while Other Income went up by 85.58%
during the period. This resulted in a 42.45% decline in the company’s
Operating Profit from GHS6.92 million to GHS3.98 million by the end of the
2015 half-year. After incorporating Finance Income of GHS0.50 million and
Tax Expenses of GHS0.13 million, BOPP’s Net Profit for the period amounted
to GHS4.36 million, indicating a fall of 39.00% from GHS7.15 million in 2014
half-year. Subsequently, the company’s Earnings per Share (EPS) decreased
from GHS0.2054 in 2014 half-year to GHS0.1253 by the end of 2015 half-
year.
The performance of BOPP on the Ghana Stock Exchange mirrors the mixed
performance of the company since its listing in August 2004. From an initial
price of GHS0.56, the stock rose gradually amidst several fluctuations to
close July 2008 at GHS1.30. Thereafter, the stock recorded a free-fall in its
price to end 2009 at GHS0.48. In 2010, 2011, 2012 and 2013, the stock
recorded year-to-date appreciations of 56.25%, 46.67%, 27.27% and
respectively. Since 2014, BOPP’s price has risen gradually, hitting an all-time
high of GHS5.01 on 12th May, 2015. The equity’s price has however declined
marginally by GHS0.81 to transact at GHS4.20 as at 21st August, 2015.
Income Statement
(All figures are stated in thousands of Ghana Cedis Dollars)
2012 2013 2014 2015 Q2
Revenue 40,839 35,438 52,164 30,607
Total Operating Expenses 28,359 30,628 40,262 26,624
Operating Profit 12,480 4,810 11,902 3,983
Net Profit(Loss) 13,406 5,806 12,291 4,360 *Financial statement figures for 2012 have been restated.
Balance Sheet Summary (All figures are stated in thousands of Ghana Cedis) 2012 2013 2014 2015 Q2
Total Assets 43,261 45,925 57,663 65,754
Total Liabilities 2,726 2,264 2,874 9,062
Total Equity 40,535 43,661 54,789 56,692
Ratios/Statistics 2012 2013 2014 2015 Q2
Profit Margin (%) 32.83 16.38 23.56 14.25
Return on Assets (%) 30.99 12.64 21.32 6.63
Return on Equity (%) 33.07 13.30 22.43 7.69
Earnings Per Share (GHS) 0.3852 0.2225 0.3532 0.1253
Dividend Per Share (GHS) 0.0770 0.0334 0.0706
Net Assets Per Share (GHS) 1.1648 1.2546 1.5744 1.6291
Ghana Ltd, CPC–Cocoa Processing Company Ltd, EBG–Ecobank Ghana Ltd, EGL–Enterprise Group Ltd, ETI–Ecobank Transnational Incorporated, FML–Fan Milk Ltd, GCB–Ghana Commercial Bank Ltd, GGBL–Guinness Ghana Breweries Ltd, GOIL–Ghana Oil Company Ltd, GSR–Gold Star
Resources Ltd, GWEB–Golden Web Ltd, HFC–HFC Bank Ltd, MAC-Mega African Capital, MLC–Mechanical Lloyd Company Ltd, PKL–Pioneer Kitchenware Ltd, PBC–Produce Buying Company Ltd, PZ–PZ Cussons Ghana Company Ltd, SCB–Standard Chartered Bank Ltd, SIC–SIC Insurance
Company Ltd, SPL–Starwin Products Ltd, SOGEGH–Société Générale Ghana Ltd, SWL–Sam Woode Ltd, TBL–Trust Bank (The Gambia) Ltd, TOTAL–Total Petroleum Ghana Ltd, TRANSOL–Transaction Solutions Ghana Ltd, UNIL–Unilever Ghana Ltd, UTB–UT Bank Ltd, AADS–AngloGold
Ashanti Depository Shares, SCB-PREF–Standard Chartered Bank Preference Shares, ETF – Exchange Traded Fund, GLD – New Gold, GAX – Ghana Alternative Exchange
0.02 26.35 26.35 - - -18.12 - - - - -
The content in this report represents the views of the analysts and is intended for informational purposes only. It should not therefore be construed as investment advice relating to the purchase or sale of any securities. Information used in the analysis was acquired from sources believed to be accurate. NTHC Limited makes no guarantee, representation or warranty and accepts no legal responsibility or liability for any inaccuracies or misrepresentation contained herein.