Union Chemicals Lanka COSE:UCAR.N0000 Stock Report

Second quarter 2022 earnings released: LK₨6.95 loss per share (vs LK₨8.17 profit in 2Q 2021)

Second quarter 2022 results: LK₨6.95 loss per share (down from LK₨8.17 profit in 2Q 2021). Revenue: LK₨399.0m (up 38% from 2Q 2021). Net loss: LK₨10.4m (down 185% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth.

Upcoming dividend of LK₨10.00 per share

Eligible shareholders must have bought the stock before 13 June 2022. Payment date: 04 July 2022. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Sri Lankan dividend payers (8.6%). Lower than average of industry peers (7.8%).

Less than half of directors are independent

No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. 2 independent directors (3 non-independent directors). Non-Executive Independent Director Kosala Dissanayake was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.

Union Chemicals Lanka Plc Proposes Final Dividend for the Year Ended 25 December 2021

First quarter 2022 earnings released: LK₨22.93 loss per share (vs LK₨20.84 profit in 1Q 2021)

First quarter 2022 results: LK₨22.93 loss per share (down from LK₨20.84 profit in 1Q 2021). Revenue: LK₨426.8m (up 16% from 1Q 2021). Net loss: LK₨34.4m (down 210% from profit in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 25% per year and the company’s share price has also increased by 25% per year.