INCOME STATEMENT (Q2 2025 vs Q2 2024)

Item Q2 2025 Q2 2024 % Change

Turnover ₦129.35m ₦114.22m ▲ 13.2%

Cost of Sales ₦85.84m ₦75.97m ▲ 13.0%

Gross Profit ₦43.52m ₦38.25m ▲ 13.8%

Admin Expenses ₦62.14m ₦36.51m ▲ 70.2%

Net Profit/(Loss) ₦(18.63m) ₦1.74m ▼ Over 1000%

🔍 Key Observations:

• Revenue and gross profit increased modestly.
• Operating expenses soared by 70%, largely from:
  • CBN loan repayment (₦26m vs ₦6.2m),
  • Professional fees (₦6.43m vs ₦0.35m),
  • Generator fuel and repairs,
  • Salaries and staff medicals.
• This led to a net loss of ₦18.6m despite higher sales.

📊 FINANCIAL POSITION (as of June 30, 2025)

Item ₦ (2025) ₦ (2024) % Change

Total Assets ₦196.3m ₦169.9m ▲ 15.5%

Shareholders’ Equity ₦50.9m ₦(47.6m)**

Improved Retained Earnings ₦(750.8m)** ₦(849.3m)** Reduced deficit

Total Liabilities ₦145.4m ₦217.5m ▼ 33.2%

🔍 Key Observations:

• Equity position improved significantly (from negative to positive), indicating possible previous recapitalization or profit retention.
• Decline in liabilities due to partial CBN loan repayment.

🧠 Conclusion:

• While revenue is growing, exploding operating costs have dragged Juli Plc into a loss position.
• The firm is deleveraging (paying down loans), but cost controls are urgently needed.
• A review of expense discipline and operational efficiency could help steer the company back to profitability.

As a professional Equity Researcher, your primary role is to analyze financial data, market trends, and industry developments to evaluate the investment potential of publicly traded companies. Here's a list of the major and most important duties:

🔍 1. Financial Statement Analysis

• Analyze income statements, balance sheets, and cash flow statements.
• Evaluate profitability, liquidity, leverage, and efficiency ratios.
• Adjust financials for non-recurring items or accounting anomalies.

📈 2. Building and Maintaining Financial Models

• Create detailed financial models (DCF, relative valuation, etc.).
• Forecast future earnings, cash flows, and valuation metrics.
• Conduct sensitivity and scenario analyses.

🏢 3. Company & Industry Research

• Conduct deep-dive research into company operations, strategy, and management.
• Understand key business drivers and competitive positioning.
• Analyze industry trends, regulatory impact, and macroeconomic influences.

💬 4. Writing Research Reports

• Produce clear, concise, and well-supported equity research reports.
• Include investment recommendations (Buy, Hold, Sell) with rationale.
• Present valuation estimates and highlight key risks.

📞 5. Engaging with Company Management & Stakeholders

• Participate in earnings calls, investor briefings, and company meetings.
• Ask insightful questions to clarify financial performance and outlook.
• Develop professional relationships with IR officers and management teams.

📊 6. Valuation and Investment Recommendations

• Use valuation techniques such as DCF, comparables (P/E, EV/EBITDA), and SOTP.
• Recommend investment actions based on valuation and fundamentals.
• Update recommendations based on new information or market movements.

📰 7. Monitoring News and Market Events

• Stay updated with real-time market news, earnings releases, and global economic data.
• Track stock price movements, sector performance, and news affecting covered companies.

🤝 8. Communicating with Clients or Internal Teams

• Present research findings to institutional clients, portfolio managers, or internal stakeholders.
• Provide timely updates and support during market-moving events.
• Answer follow-up questions with clarity and supporting data.

🧠 9. Risk Assessment

• Identify and explain key investment risks (e.g., operational, regulatory, market-related).
• Help clients manage risk through proper stock selection and diversification insights.

📅 10. Maintaining Coverage Universe

• Regularly update models and reports for a group of companies (“coverage universe”).
• Reassess recommendations based on earnings, news, or macro developments.