May 03, 2022
Jamaican Teas Limited (JAMT) reported a 4% decrease in revenues to total $1.17 billion (2021: $1.22 billion). For the quarter, revenues amounted to $574.53 million a 6% decrease when compared to $608.55 million in the previous corresponding period. According to management the decrease was “due to the absence of any real estate sales this quarter versus 2021 which included real estate sales from Manor Park. For the half year sales decreased 4 per cent”.
Cost of sales decline by 2% to $893.93 (2021: $907.62 million) for the six months ended March 31, 2022. Consequently, gross profit went down 11% to close at $276.70 million relative to $311.50 million booked for last year’s corresponding period. Gross profit for the quarter closed at $130.14 million (2021: $143.52 million).
Other income for the period rose by 1% to $242.91 million versus $239.87 million recorded the prior year’s corresponding period. Other income for the quarter closed at $75.71 million, which reflects a 24% decline when compared to other income of $99.42 million documented for the same period last year. Management stated that “the decrease in Other Income this quarter mainly reflects the impact of unrealized exchange losses on the foreign currency shares and other foreign currency denominated assets owned by group member companies compared with a year ago and is a direct result of the recent revaluation of the Jamaican dollar in the quarter”
Sales and marketing cost declined by 16% to $15.35 million for the six months ended March 2022 relative to $18.27 million for the same period of 2021. Administrative expenses went up by 26%, totalling $168.91 million (2021: $133.56 million). For the quarter, administrative expenses and sales & marketing costs closed at $78.36 million (2021: $70.74 million) and $5.54 million (2021: $9.51 million), respectively.
Finance cost for the period under review amounted to $21.80 million (2021: $16.68 million), while for the quarter finance costs closed at $12.52 million versus $9.60 million in the prior year’s corresponding quarter.
Consequently, pretax profit totalled $313.54 million for the period compared to $382.85 million in 2021. For the quarter, JAMT recorded a pretax profit of $109.43 million relative to $153.08 million in 2021.
JAMT documented a net profit of $251.83 million year to date, relative to $291.32 million recorded twelve months earlier. For the quarter, net profit closed at $87.26 million (2021: $111.48 million). Net profit attributable to shareholders for the period under review totalled $171.15 million compared to $198.33 million in 2021. Net profit attributable to shareholders for the quarter closed at $62.48 million relative to $82.34 million in 2021.
Consequently, earnings per share (EPS) totalled $0.08 compared to $0.09 for the period ended March 31, 2021. For the quarter, EPS closed at $0.03 (2021: $0.04). The twelve months earnings per share amounted to $0.17. The numbers of shares used in the calculations are 2,153,580,377 units. JAMT last traded on May 3, 2022 at $3.76 with a corresponding P/E of 22.14 times.
Balance Sheet Highlights:
As at March 31, 2022, the Company total assets amounted to $4.51 billion, an increase of 20% when compared to the $3.77 billion reported as at March 2021. Large contributors of this increase were ‘Quoted Equities’ and ‘Housing under construction’ which totaled $2.19 billion (2021 $1.86 billion), and $466.30 million (2021: $199.43 million) respectively.
Shareholders’ Equity totalled $2.30 billion as at March 31, 2022 (2021: $1.88 billion), resulting in a book value per share of $1.07 (2021: $0.88).
Disclaimer:
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.
