FosRich Expands to the US
- Electrical, lighting and solar products distributor FosRich Company Limited through FosRich USA Inc. has entered the United States market by opening an office in Tennessee, strategically positioning itself to capitalise on opportunities, particularly under the Federal Government Infrastructure Program. The company intends to concentrate initially on three States, beginning with Tennessee.
- Last week, FosRich signed a lease agreement for a physical office space in Tennessee, outfitted the office and engaged staff to advance its data collection and market research efforts. Furthermore, FosRich would have also engaged potential suppliers to establish partnerships to support both its American and Jamaican operations.
- During the company’s annual general meeting on June 18th, 2024, Cecil Foster, Managing Director of FosRich, highlighted that the company is working with small and medium sized businesses to supply hardware products.
- Additionally, the company has also been expanding locally. Construction of its new FosRich Superstore & Corporate Offices at 76 Molynes Road is now at an advanced stage, with the completion date projected to be at the end of Q3 2024. It has also recently opened new retail outlets in Drax Hall, St. Ann, and Montego Bay, St. James.
- Management noted that the company continues to implement its strategic plans, including plans for the expansion of revenues through the new superstore and all its offerings, the expansion of key product lines, and the driving of its export market thrust.
- Fosrich’s stock price has fallen 8.5% since the start of the calendar year. The stock closed Thursday’s trading session at $2.15 and currently trades at a P/E of 53.8x, which is well above the Junior Market Distribution Sector Average of 15.5x, suggesting that investors may still be optimistic about the company’s future growth prospects despite recent earnings decline.
(Sources: JSE, FosRich, and NCBCM Research)