Beta Glass Plc has started 2025 on a strong note, with its stock delivering a 33.23% year-to-date return as of February 5, 2025, outperforming its sector and ranking 14th on the NGX. This momentum follows impressive gains of 53.85% in 2024 and 36.36% in 2023.
Key Highlights:
- 33.23% year-to-date return as of February 5, 2025, outperforming its sector and ranking 14th on the NGX
- 86.92% year-on-year (YoY) increase in revenue to N117.5 billion in 2024
- 145.22% YoY surge in gross profit to N30.377 billion
- 11% bottom-line profit margin, indicating high costs are limiting profitability
- 59% decline in cash and cash equivalents, resulting in a net debt position of N15.242 billion in 2024
- 349% increase in interest expenses to N9.458 billion, reducing the interest coverage ratio to 2.58x in 2024
While Beta Glass Plc's stock performance and revenue growth are impressive, rising costs and financial leverage concerns threaten to undermine its long-term profitability. The company's high costs, particularly raw materials, fuel, and energy, are limiting its profitability, and the decline in cash and cash equivalents has increased its financial leverage. Investors should carefully consider these factors when evaluating the company's prospects.
How well do narratives help inform your perspective?
Disclaimer
The user WaneInvestmentHouse holds no position in NGSE:BETAGLAS. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.