May 2006 Financial News

Agostini's Limited Releases Half Year Results

May 08, 2006

Agostini's Limited reported Earnings Per Share (EPS) of 35 cents for the half year ended March 31, 2006 which was an increase of 40 per cent from 25 cents reported in 2005. This quarter however contributed less to the EPS than the first quarter as only 14 cents was earned per share in quarter 2 compared to 21 cents in quarter 1. However, in comparison to the second quarter of 2005, the Company enjoyed 16.67 per cent growth from 12 cents to 14 cents.

The Group's Distribution division continued to be the major contributor to Revenue comprising approximately 60 per cent of the $185.432 million earned in Revenue. Growth in Revenue was 28.10 per cent in comparison to 2005’s figure while Profit After Tax was up 43.13 per cent to $9.485 million.

At the current price of $10.75, Agostini's is currently trading at a running price earnings ratio of 10.54. Given that this share usually trades between 10 to 12 times earnings, and the fact that the majority of these shares are held by major shareholders, we currently recommend this share as a HOLD.

Sreshtha Tewari
WISE Research Team