August 13, 2024

Expressed in TT$ unless stated otherwise

A.S. BRYDEN & SONS HOLDINGS LIMITED (ASBH) for the six months ended June 30, 2024, reported a 9% increase in turnover totalling $1.31 billion compared to $1.20 billion in the corresponding period last year. Turnover for the second quarter had a 11% increase to close at $682.24 million compared to $615.52 million for the comparable quarter of 2023.

Direct expenses amounted to $957.78 million (2023: $889.13 million), this represents an increase of 8% year over year. Consequently, gross profit increased by 14% to $354.25 million compared to $311.09 million for the six months ended June 30, 2023. The company booked gross profit of $181.85 million for the second quarter versus $158.53 million reported for the similar quarter of 2023.

Other income decreased by 45% to close at $1.43 million (2023: $2.60 million), while Administration and other operating expenses increased by 21% from $221.94 million in 2023 to $268.04 million in the period under review. As a result, operating profit for the six months amounted to $87.64 million, a 4% decrease relative to $91.76 million reported in 2023.

Finance costs totalled $28.99 million a 41% increase from the corresponding period last year. (2023: $20.56 million).

Profit before taxation for the six months amounted to $58.26 million, a 19% decrease relative to $72.37 million reported in 2023. Profit before taxation for the second quarter amounted to $26.10 million (2023: $32.44 million).

Taxation for the six months was $25.91 million (2023: $18.14 million).

Net profit for the six months amounted to $32.35 million, a 40% decrease from the $54.23 million reported in 2023. For the second quarter, net profit was $13.61 million (2023: $24.17 million).

Management noted the decline in six months net profit was “as a result of higher finance costs, higher effective taxation, as well as a reduction in income from an Associate investment held in Barbados that went from a $1.2 million profit to a ($0.4 million) loss”

Net profit attributable to shareholders was $29.02 million compared to $49.42 million reported in 2023. For the second quarter, net profit attributable to shareholders was $13.60 million (2023: $21.81 million).

Consequently, Earnings Per Share for the six months amounted to $0.02/J$0.54 (2023: EPS: $0.04/J$0.90), while Earnings Per Share for the quarter totalled $0.01/J$0.23 (2023: EPS: $0.02/J$0.40). The twelve-month trailing EPS was J$1.78 and the number of shares used in these calculations was 1,389,683,010.

Notably, ASBH’s stock price closed the trading period on August 12, 2024, at a price of $38.98 with a corresponding P/E ratio of 21.88x.

ASBH highlighted, “In mid-June, we acquired a 44.8% shareholding in Caribbean Producers Jamaica Limited (CPJ), a publicly listed company on the Jamaica Stock Exchange which is a manifestation of our commitment to expand the Brydens Group regionally. We will start to consolidate CPJ earnings in the second half”.

Balance Sheet Highlights

The company’s assets totalled $2.13 billion (2023: $1.82 billion). The uptick in assets was attributed to a 55% increase in ‘Trade and other receivables’ closing at $691.03 million.

Shareholder’s equity was $672.27 million (2023: $592.05 million), representing a book value per share of $0.48/J$11.20 (2023: $0.43/J$9.81).

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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.