March 8, 2022

BPOW for the nine months ended January 31, 2022 revenues fell by 20% to $346.52 million relative to $435.19 million recorded in 2021. For the third quarter, revenue contracted 12% from $153.23 million in 2021 to $135.42 million in 2022. Management highlighted, “The Blue Power business is taking steps to adjust to the increases in prices of commodities and freight rates and the lack of availability of shipping capacity. These changes no longer appear temporary, and we are adjusting our prices to reflect the changes in the overall economic environment.”

Cost of Sales for the period fell by 4% to $233.66 million (2021: $244.25 million). As such, gross profit fell by 41% to $112.85 million (2021: $190.94 million). For the third quarter, cost of sales grew by 31% to $102.01 million (2021: $77.67 million); consequently, gross profit for the quarter fell 56% to $33.41 million (2021: $75.57 million). Impairment loss on investment for the period amounted to $50,608 (2021: nil).

Administrative Expenses amounted to $122.97 million, an 11% increase relative to $110.55 million recorded in the last corresponding period. Consequently, Operating loss totalled $8.01 million, relative to Operating Profit of $65.21 million booked for the prior year’s period.

Notably, other income surged to $55.85 million versus $25.74 million documented in the same period last year. For the quarter, other income closed at $5.59 million (2021: $10.74 million).

Finance Income amounted to $23.68 million (2021: $21.16 million), while Finance Cost totalled $2.04 million (2021: $1.55 million) for the nine months period. As such, Profit before taxation increased by 95% to $215.12 million relative to $110.57 million for the corresponding period last year.

The Company reported a 61% decrease in taxes paid year-to-date to $10.78 million compared to the $27.64 million paid for the same period last year. Consequently, Net Profit from continuing operations rose by 146% to $204.34 million (2021: $82.93 million). Net Profit for the quarter totalled $9.33 million relative to Net Loss of $33.04 million booked the prior year’s quarter.

Total comprehensive income for the period totalled $239.60 million, relative to the $170.70 million reported twelve months prior. For the quarter total comprehensive income amounted to $56.59 million in comparison to the comprehensive income of $117.39 million reported in 2021.

The company noted, “We will continue to develop new markets outside of Jamaica and to challenge the trading arrangements that constrain our business in CARICOM. Our balance sheet and liquidity remain strong, and we will continue to hold prudent investments that support our earnings growth and diversify our financial position.”

Earnings-per-share (EPS) for the period amounted to $0.36 (2021:$ 0.15), while EPS for the quarter amounted to $0.02 (2021:$0.06). The twelve-month earnings-per-share amounted to $0.40. The number of shares used in our calculation is 564,990,000. Notably, BPOW stock price closed the trading period on March 08, 2022 at $3.88 with a corresponding P/E ratio of 9.62 times.

Balance Sheet at a glance:

 The company, as at January 31, 2022, recorded total assets of $1.60 billion, an increase of 33% when compared to $1.20 billion recorded last year. This was as a result of the Company booking ‘Investment’ and ‘Inventories’ of $721.69 million (2021: $521.65 million) and $308.52 million (2021: $296.53 million).

Total Stockholders’ Equity as at January 31, 2022 closed at $1.49 billion (2021: $1.12 billion). This resulted in a book value of $2.63 (2021: $1.98).

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