July 29, 2022
For the nine months ended June 30, 2022 Jamaican Teas Limited (JAMT) reported a 4% increase in revenues to total $1.82 billion (2021: $1.75 billion). For the quarter, revenues amounted to $648.57 million a 22% increase when compared to $530.71 million in the previous corresponding period. According to management the increase was partly due to “Export manufacturing sales rose a strong 40 percent in the quarter as the division overcame the shortage of raw materials required to fulfill orders of finished products experienced earlier in the year. Local sales improved by 10 percent in the quarter over 2021.”
Cost of sales increased by 7% to $1.39 billion (2021: $1.30 billion) for the nine months ended June 30, 2022. Consequently, gross profit went down 4% to close at $433.45 million relative to $451.12 million booked for last year’s corresponding period. Gross profit for the quarter closed at $156.75 million (2021: $139.62 million).
Other income for the period fell by 78% to $97.35 million versus $451.13 million recorded during the prior year’s corresponding period. Other loss for the quarter closed at $131.76 million, which reflects a 162% decline when compared to other income of $211.26 million documented for the same period last year.
Sales and marketing cost declined by 4% to $26.14 million for the nine months ended June 2022 relative to $27.12 million for the same period of 2021. Administrative expenses went up by 28%, totalling $239.92 million (2021: $187.50 million). For the quarter, administrative expenses and sales & marketing costs closed at $71.01 million (2021: $53.95 million) and $10.79 million (2021: $8.84 million), respectively.
Finance cost for the period under review amounted to $33.70 million (2021: $25.92 million), while for the quarter finance costs closed at $13.86 million versus $9.24 million in the prior year’s corresponding quarter.
Consequently, pretax profit totalled $231.04 million for the period compared to $661.71 million in 2021. For the quarter, JAMT recorded a pretax loss of $70.68 million relative to profit of $278.85 million in 2021.
JAMT documented a net profit of $193.18 million year to date, relative to $501.06 million recorded twelve months earlier. For the quarter, net loss closed at $46.82 million relative to net profit of $210.01 million in 2021. Net profit attributable to shareholders for the period under review totalled $186.32 million compared to $313.01 million in 2021. Net profit attributable to shareholders for the quarter closed at $24.26 million relative to $115.45 million in 2021.
Consequently, earnings per share (EPS) totalled $0.09 compared to $0.15 for the period ended June 30, 2021. For the quarter, EPS closed at $0.01 (2021: $0.05). The twelve months earnings per share amounted to $0.12. The numbers of shares used in the calculations are 2,149,865,377units. JAMT last traded on July 29, 2022 at $2.76 with a corresponding P/E of 22.29 times.
Balance Sheet Highlights:
As at June 30, 2022, the Company total assets amounted to $4.59 billion, an increase of 12% when compared to the $4.09 billion reported as at June 2021. The largest contributor of this increase was ‘Housing under construction’ which totaled $517.62 million (2021: 224.57 million). Management stated, “The increase in Housing under Construction since September 2021 is a result of the build out of Belvedere while the increase in receivables resulted, in part from the growth in revenues reported above.”
Shareholders’ Equity totalled $2.38 billion as at June 30, 2022 (2021: $1.97 billion), resulting in a book value per share of $1.11 (2021: $0.92).
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.