PBC records 20.6 per cent net profit

Story by Raphael Apetorgbor

The Produce Buying Company (PBC) as at the end of 2012 recorded a net profit of 20.6 per cent after tax returns on capital employment, Dr John Frank Abu Chairman of the company has stated.

He said it balance sheet showed a marginal growth in shareholders equity by 3.25 per cent from GH 47.373 million to GH 48.917 million whiles it total assets grew by 5.4 per cent from GH 274 million to GH 289.272 million.

In the company 12^th Annual General Meeting Report read by Dr Frank Abu in Accra, he disclosed that this marginal growth was led mainly by a significant increase in trade and other receivables as well as increases in property, plant and equipment.

However he said the company’s total revenue decreased from GH1.301 billion to GH1.162 billion, a decrease of 10.7 per cent due mainly to decrease in cocoa purchases arising from poor national cocoa production as a result of unfavorable weather conditions.

In that light, he said the company’s total operational and administrative expenditure increased marginally by 2.6 per cent from GH 68.422 to GH70.237 due to the tighter control measures put up by management that ensured that expenditure was kept under reasonable limits.

Also PBC finance cost increased by 36.5 per cent from GH34.563 million to GH47.174 million due to the inadequacies of the traditional source of cocobod trading which became inadequate to meet PBC s needs and hence the company’s reliance on overdrafts and short term loans at very high cost.

According to Dr Frank Abu the company’s performance during the tax resulted in a net profit after tax of GH10.073 million, a decrease of 63.6 per cent of the previous year’s figure of GH27, 655 million.

He noted with concern how it basic Earnings Per Share (EPs) reduced by 63.5 per cent from GH0.0576 in the previous year to GH 0.0210 indicting unimpressive shareholders earnings arising out of the reduced Total Comprehensive Income for a year. 

He announced that the company has completed the process of establishing a factory at Buipe to process sheanut into sheabutter for export.

In addition the Dr Frank Abu stated that tremendous effort have being put into place to strengthen and modernize the head office to an appreciable standard.

He further said the company committed about GH 136,200.00 as it social responsibility to support infrastructural project and humanitarian needs of the people.