Fosrich Q2 2025 Earnings Dim 6M Performance

• Fosrich Company Limited (FOSRICH) reported a net loss of J$120.96Mn for the three-month period ended June 30, 2025 (Q2 2025) compared to $44.89Mn in Q1 2024. The outturn was due to lower prices for its PVC pipes and solar panels along with upward pressure on both direct and indirect costs, which ultimately eroded net profit.
• Revenues for the period were J$734.40Mn, a 17.0% contraction from J$884.63Mn. The quarter was adversely impacted by the substantial fall in PVC and solar panel costs on the world markets. Therefore, despite achieving higher sales volumes, because theproduct’s price reductions are passed on to customers, the company achieved lower total sales income.
• Challenges in the shipping industry have also resulted in significant delays in shipment for both finished goods and raw material, which weighed down the company’s performance in Q2. Raw material delays significantly interrupted the company’s manufacturing operation during the quarter, which limited its ability to keep the market supplied with these products.
• Higher direct costs (16.3%) compounded the company’s challenges. Though slightly offset by a marginal contraction in administrative expenses, the company reported operating losses of J$64.02Mn compared to a J$134.43Mn profit in Q2 2024.
• As a result, the company reported a net loss totaling J$120.96Mn for the period. This performance, in turn, contributed to an overall net loss of J$189.56Mn for the six-month period in 2025 (6M 2025) relative to earnings of J$77.88Mn in 2024.
• Notably, construction of the new FosRich Superstore & Corporate Offices at 76 Molynes Road is advanced, with completion date now projected to be Q3, 2025. However, the company have halted plans to enter the United States market, until further notice.
• Despite the weaker 6 months results, FOSRICH’s stock price appreciated by 15.8% year-to-date, closing at $2.71 on Thursday.

(Sources: FosRich Company Limited & NCBCM Research)