Date: March 1, 2019

BPOW for the nine months ended January 31, 2019 revenues increased by 11% to $1.27 billion relative to $1.15 million recorded in 2018. For the third quarter, revenue increased 5% from $388.30 million in 2018 to $408.62 million. The company indicated, “Overall sales for the three-month period are up by 5% from $388 million to $409 million with the Lumber Depot Division showing an increase of 13% while the Blue Power Division declined by 11%. For the nine-month period, however, Lumber Depot Division sales increased by 10% while the Blue Power Division sales grew by 12%. In the period under review profits have been bolstered by significant benefits due to changes in the exchange rate.”

The Company also noted, “Our efforts to improve our export performance continue to show results. Export sales showed an increase of 42% on a year-to-date basis, rising from $74 million in the previous year to $103 million in the current year.” On the other hand, Management noted, “The laundry soap business continues to face heightened competition from local and international manufacturers. We will continue to monitor the situation to protect the gains we have made.”

Cost of Sales for the period increased by 9% to $975.31 million (2018: $897.76 million). As such, gross profit increased by 17% to $295.62 million (2018: $251.73 million). For the third quarter,cost of sales climbed by 5% to $316.88 million (2017: $302.17 million); consequently gross profit for the quarter increased 7% to $91.74 million (2017: $86.13 million)

Administrative Expenses amounted to $178.99 million, a 12% increase relative to $159.21 million last year. Consequently, Operating Profit totalled $116.62 million, 26% more than the $92.52 million for the prior year’s period.

Finance Income amounted to $22.99 million (2018: $8.64 million) while Finance Cost totalled $4.45 million (2018: $13.05 million) for the nine months period. As such, Profit before taxation increased by 51% to $136.24 million relative to $90.14 million for the corresponding period last year.

The company reported a 50% increase in taxes paid year-to-date to $16.27 million compared to the $10.87 million paid for the same period last year. As a result, Net Profit increased by 51% to $119.97 million (2018: $79.27 million). Net profit for the quarter totalled $33.19 million relative to $23.27 million the prior year’s quarter.

Earnings-per-share for the period amounted to $0.21 (2018:$0.14) while earnings-per-share for the quarter amounted to $0.06 (2018:$0.04). The twelve month earnings-per-share amounted to $0.25.The amount of shares used in our calculation is 564,990,000. Notably,BPOW stock price closed the trading period on February 28, 2018 at $4.93.

Balance Sheet Highlights:

 The company, as at January 31, 2019, recorded total assets of $985.02 million, an increase of 20% when compared to $817.49 million recorded last year. This was as a result of the Company booking ‘Investment” of $218.19 million relative to nil reported the prior year. This was however tempered by the $133.71 million decline in ‘Cash and Cash Equivalents’ to $181.79 million (2018: $315.51 million).

Total Stockholders’ Equity as at January 31, 2019 closed at $871.97 million (2018:$739.77 million). This resulted in a book value of $1.54 (2018:$1.31).

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.