Corporate earnings continue to thrive for the fourth consecutive quarter in line with improving economic landscape, said First Capital’s QUARTERLY RESULTS REVIEW JUL – SEP 2024.
In September 2024, market earnings edged higher by 65.5% YoY for the fourth consecutive quarter. A one-off gain, which bore significant influence on the earnings of BROWN, BIL and LOLC, was the reason for this notable uptick.
The normalized quarterly earnings excluding the non-recurring inflow, reported a YoY decline of 16.0%. On some quarterly basis earnings scaled up by 121.0%. Normalized earnings excluding one off items reported a QoQ increment of 12.2%, showcasing a reasonable increase relative to Jun-24 nonetheless.
Overall, higher profitability was reported in many sectors while a few sectors recorded losses.
The growth in earnings for Sep-24 can be primarily attributed to the Food, Beverage & Tobacco Sector which improved revenue and reduction in overall finance cost coupled with improved consumer sentiment aided the sector’s profitability and the Capital Goods Sector where Reduced costs, reduction of losses in many counters as well as a sharp rise in BROWN’s earnings supported the increased earnings.
Earnings for the majority of the sectors recorded gains, whilst others recovered from previous losses. The top profit-making companies predominantly included banks, food & beverage, diversified financials companies.
However, Energy Sector (Margin contraction exacerbated by price reductions, global geopolitical tensions, and currency fluctuations weakened the profitability) and Consumer Durables & Apparel Sector (Increased operating expenditure and currency fluctuations repressed the improved consumer sentiment, resulting in the sector to contract) contributed negatively for the quarterly earnings.
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