August 16, 2024
Spur Tree Spices Jamaica Limited (SPURTREE) for the six months ended June 30, 2024, reported a 9% increase in Revenue totaling $723.39 million compared to $661.90 million in the corresponding period last year. Revenue for the second quarter had a 18% increase to close at $328.84 million compared to $278.22 million for the comparable quarter of 2023.
Cost of Sales amounted to $529.57 million (2023: $468.27 million), this represents an increase of 13% year over year. Consequently, gross profit increased marginally to $193.81 million compared to $193.63 million for the six months ended June 30, 2023. The company booked gross profit of $108.34 million for the second quarter versus $69.45 million reported for the similar quarter of 2023.
Other operating income decreased by 16% to close at $2.70 million (2023: $3.22 million), while Administrative and other expenses increased by 5% from $135.73 million in 2023 to $143.17 million in the period under review. As a result, operating profit for the six months ended June 30, 2024, amounted to $53.34 million, a 13% decrease relative to $61.11 million reported in 2023.
Finance Cost for the six months ended June 30, 2024, amounted to $18.28 million, a 13% decrease relative to $20.92 million reported in 2023. Finance Cost for the second quarter amounted to $11.21 million (2023: $10.53 million).
Consequently, Profit before Tax totalled $35.07 million a 13% decrease from the corresponding period last year. (2023: $40.19 million). For the quarter, profit before tax of $7.59 million was reported relative to loss before tax of $7.67 million last year.
No taxes were reported for the current period. (2023: Tax charge of $12,000). As such, Net Profit for the six months ended June 30, 2024, had a 13% decrease to reach $35.07 million (2023: $40.18 million).
Net profit attributable to shareholders of the company for the six months amounted to $44.38 million, a 2% increase from the $43.55 million reported in 2023. For the second quarter, Net profit attributable to shareholders of the company was $14.09 million (2023: $3.04 million).
Management highlighted, “Although losses in both subsidiaries impacted the overall performance due to the low seasonal production of ackee, the parent company continues to record better performances. This has positively contributed to the improved consolidated results. Results in the subsidiaries are expected to be much improved in the third and fourth quarters, which traditionally yield greater output of ackee.”
Consequently, Earnings Per Share for the six months amounted to $0.02 (2023: EPS: $0.02), while Earnings Per Share for the quarter totaled $0.005 (2023: LPS: $0.005). The twelve-month trailing EPS was $0.04 and the number of shares used in these calculations was 1,676,959,244.
Notably, SPURTREE’s stock price closed the trading period on August 15, 2024, at a price of $1.86 with a corresponding P/E ratio of 41.60x.
Balance Sheet Highlights
The company’s assets totalled $1.59 billion (2023: $1.54 billion). The movement in total assets was influenced by ‘Receivables’ and ‘Inventories’ growing by $120.04 million and $38.75 million, while ‘Cash and bank balances’ and ‘Property, plant and equipment’ declined by $76.40 million and $39.01 million, respectively.
Shareholder’s equity was $808.11 million (2023: $752.10 million), representing a book value per share of $0.48 (2023: $0.45).
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