May 12, 2023
Figures are quoted in United States dollars (except where it is indicated otherwise):
Caribbean Producers Jamaica Limited (CPJ) for the nine months ended March 31, 2023, reported a revenue increase of 24% from US$86.44 million in 2022, to close the period at US$107.04 million. For the third quarter, the Company posted a 26% increase in revenues to close at US$35.65 million relative to US$28.36 million for the same quarter of 2022. CPJ noted, “Despite the significant growth in sales, CPJ is still having to manage fluctuations in commodity prices and higher than normal level of inventory to ensure consistency of supply for our valued customers. The ongoing instability of the supply chain, while improving has reduced year over year margins attributable to the company by 2.2%.”
Consequently, CPJ recorded a 15% increase in gross profits to US$31.78 million (2022: US$27.61 million) for the nine months ended March 31, 2023. Gross profits for the quarter also grew, this amounted to US$10.37 million up from the US$8.86 million posted in 2022.
Selling and administrative expenses were US$19.62 million, a 34% increase on the US$14.69 million posted for the prior year. Other operating income totaled US$39,130; this compares with an operating income of US$647,278 booked in 2022.
Taxation charge amounted to US$1.38 million (2022: US$904,278) resulting in a net profit of US$3.82 million for the nine months ended March 31, 2023, relative to a net profit of US$7.02 million booked for the corresponding period last year. While for the quarter, the net profit amounted to US$354,225 relative to a net profit of US$1.60 million booked last year.
Net profit attributable to shareholders for the nine months amounted to US$3.58 million relative to net profit attributable to shareholders of US$6.80 million reported in 2022, while for the quarter, net profit attributable to shareholders amounted to US$225,832 relative to a profit of US$1.58 million booked last year.
As a result, earnings per share (EPS) for the nine months amounted to US0.325 cents compared to an EPS of US0.618 cents in 2022. EPS for the quarter amounted to US0.02 cents relative to earnings per share of US0.14 cents last year. The trailing-twelve-month EPS amounted to US0.389 cents. The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ closed trading on May 11, 2023, at J$10.18 with a corresponding P/E ratio of 26.15 times.
Management noted, “We are making further Investments in energy-saving projects and information technology systems to yield reduced costs and improved customer service and efficiencies. The company continues to advance its Business to Business & Business to Customer online platforms to reach a broader client base through technology.”
Balance Sheet at a Glance:
As at March 31, 2023, CPJ’s total assets amounted to US$86.17 million, a 10% increase from the US$78.57 million booked in 2022. The growth year over year was linked to the upward movements in ‘Inventories’ which amounted to US$39.19 million (2022: US$29.98 million) and ‘Cash and cash equivalent’ which ended at US$4.90 million (2022: US$4.26 million).
Shareholder’s Equity totaled US$26.73 million (2022: US$22.44 million) resulting in a book value per share of approximately US2.43 cents (2022: US2.04 cents).
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