December 2, 2024

Eppley Limited  (EPLY) for the nine months ended September 30, 2024, reported a marginal increase in Interest Income totaling $316.72 million compared to $316.59 million in the corresponding period last year. Interest Income for the third quarter had a 4% decrease to close at $93.66 million compared to $98.05 million for the comparable quarter of 2023.

Interest Expense amounted to $283.96 million (2023: $226.08 million), this represents an increase of 26% year over year. Consequently, net interest income decreased by 64% to $32.76 million compared to $90.51 million for the nine months ended September 30, 2023. The company booked net interest expense of $18.49 million for the third quarter versus net interest income of $21.27 million reported for the similar quarter of 2023.

Asset management fee income increased by 7% to close at $241.81 million (2023: $226.05 million), while Fees and other operating income decreased by 31% from $112.72 million in 2023 to $77.69 million in the period under review. Also, gain on bargain purchase for the nine months ended September 30, 2024, amounted to $676.05 million, a 194% increase relative to $229.59 million reported in 2023.

Eppley highlighted, “Last quarter Eppley purchased a significant number of shares in our Eppley Caribbean Property Fund Limited SCC – Value Fund (“ECPF”) on the Jamaica Stock Exchange and the Barbados Stock Exchange. In addition to being the manager of ECPF, these acquisitions also now make Eppley its single largest shareholder.”

Administrative Expenses for the nine months ended September 30, 2024, amounted to $314.45 million, a 35% increase relative to $232.90 million reported in 2023. Administrative Expenses for the third quarter amounted to $146.16 million (2023: $66.48 million).

Share of Net Profit from Joint Venture totalled $561.23 million, a 3757% increase from the corresponding period last year. (2023: $14.55 million).

Consequently, Profit Before Tax for the nine months ended September 30, 2024, amounted to $1.44 billion, a 210% increase relative to $463.81 million reported in 2023. Profit Before Tax for the third quarter amounted to $1.31 billion (2023: $98.20 million).

Taxation for the nine months ended September 30, 2024, had a 6% increase to reach $22.31 million (2023: $20.97 million). As such, Net Profit for the nine months amounted to $1.41 billion, a 219% increase from the $442.84 million reported in 2023. For the third quarter, Net Profit was $1.30 billion (2023: $91.33 million).

Net profit attributable to shareholders for the nine months ended September 30, 2024, totalled $900.31 million (2023: $442.91 million).

Consequently, Earnings Per Share for the nine months amounted to $4.68 (2023: EPS: $2.30), while Earnings Per Share for the quarter totaled $4.12 (2023: EPS: $0.45). The twelve-month trailing EPS was $5.02, and the number of shares used in these calculations was 192,468,300.

Notably, EPLY’s stock price closed the trading period on November 29, 2024, at a price of $32.89 with a corresponding P/E ratio of 6.55x.

Balance Sheet Highlights

The company’s assets totalled $20.61 billion (2023: $6.59 billion). The growth in total assets was primarily driven by a $8.15 billion increase in ‘Investment property’, a $3.49 billion increase in ‘Investment in associated company and Joint ventures’ and a $1.84 billion increase in ‘Cash and deposits’.

Shareholder’s equity was $2.10 billion (2023: $1.32 billion), representing a book value per share of $10.91 (2023: $6.84).

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