138SL reports 7% decrease in six months net profit

May 13, 2022

138SL’s income increase by 9% to $571.18 million relative to the $522.64 million recorded for the corresponding six months period the year prior.

Other operating income decreased for the period under review, with a decline of 64% to $13.05 million relative to $35.97 million a year earlier.  Income for the quarter increased by 10% to $294.92 million (2021: $267.07 million), while other operating income fell 32% to $15.43 million (2021: $10.86 million).

Administrative expenses decreased by 7% for the period amounting to $258.94 million (2021: $278.64 million). As for the quarter, there was a 9% decline to $124.44 million versus $136.93 million reported in the prior year’s corresponding period.

Operating profit for the six months ended March 31, 2022 closed at $325.29 million, an increase of 16% compared to $279.96 million that was recorded for the comparative period in 2021. Operating profit for the quarter closed at $180.91 million (2021: $145.58 million), a 24% improvement year over year.

The Company reported finance costs of $181.02 million (2021: $114.56 million), a 58% increase year over year. For the quarter, finance cost increased 62% to close at $90.05 million (2021: $55.46 million).

Profit before taxation for the six months period amounted to $144.27 million compared with a profit before taxation of $165.39 million for the similar period last year. For the quarter, profit before taxation amounted $90.86 million (2021: $90.12 million).

Following tax credits of $10.93 million (2021 tax credit: $1.40 million), net profit totalled $155.20 million versus a net profit of $166.79 million recorded in 2021. 138SL’s net profit for the quarter closed at $95.61 million relative to a net profit of $100.87 million the prior year, a 5% reduction year over year.

Total comprehensive income for the six months ended March 31, 2022 amounted to $155.20 million relative to an income of $166.79 million last year. For the second quarter, total comprehensive income summed to $95.61 million versus a total comprehensive income of $100.87 million the prior year.

Earnings per share (EPS) for the six months ended March 31, 2022 amounted to $0.37 relative to an earning per share of $0.40 a year earlier. The EPS for the quarter totalled $0.23 relative to an EPS of $0.24. The twelve-month trailing EPS $0.56. The number of shares used in this calculation was 414,500,000. As at May 10, 2022, the stock traded at $5.24 with a corresponding P/E of 9.32 times.

138SL highlighted that, “The Covid-19 pandemic continues to impact on our occupancy and revenues during the second quarter. Despite the relaxation by the Government in the Covid –19 measures, management’s policy is to still place high priority on the health and safety of our employees and residents. This is demonstrated through our continuation of measures that were implemented to ensure the safety of our residents and staff. As we emerge from the pandemic, we are optimistic that we will see a consistent increase in our occupancy and revenues. We remain grateful to our employees, our various partners, residents, and other stakeholders who have helped us to navigate during these challenging times. We look forward to your continued support. Special thanks to our financiers and stockholders for your confidence in the business.”


Balance Sheet at a Glance:

As at March 31, 2022, total assets increased by 3% to $10.35 billion (2021: $10.09 billion). This increase was primarily driven by ‘Receivables’ which closed at 1.48 billion (2021: $914.49 million). Tempered by ‘Financial asset-service concession’ which closed at $8.52 billion (2021: $8.87 billion).

Shareholders’ equity totalled $4.58 billion (2021: $4.70 billion) which resulted in a book value per share of $11.05 (2021: $11.34).


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.