March 8, 2021
BPOW for the nine months ended January 31, 2021 revenues increased by 44% to $493.08 million relative to $342.46 million recorded in 2020. For the third quarter, revenue increased 61% from $111.03 million in 2020 to $179.24 million in 2021. Management highlighted, “The chairman’s report now consists of the results of the company excluding the former Lumber Depot division. Revenue is now derived from manufacturing, rental of property and provision of management services to Lumber Depot Limited.”
Additionally, BPOW noted “Export sales increased during the quarter from $22 million to $53 million while other income remained relatively the same as in the previous year. A significant portion of the increase came from exports to CARICOM. Within Jamaica, we added a new revenue stream from sales of lumber and ply board imported for sale to Lumber Depot.”
Cost of Sales for the period increased by 38% to $299.39 million (2020: $217.52 million). As such, gross profit rose by 55% to $193.69 million (2020: $124.94 million). For the third quarter, cost of sales grew by 40% to $102.43 million (2020: $73.41 million); consequently gross profit for the quarter increased 104% to $76.81 million (2020: $37.62 million)
Administrative Expenses amounted to $110.55 million, a 1% decrease relative to $111.39 million recorded in the last corresponding period. Consequently, Operating Profit totalled $67.97 million, 402% less than the $13.55 million booked for the prior year’s period.
Notably, other income surged to $21.04 million versus $12.75 million documented in the same period last year. For the quarter, other income closed at $7.55 million (2020: $6.83 million).
Finance Income amounted to $21.16 million (2020: $25.01 million) while Finance Cost totalled $1.55 million (2020: $662,230) for the nine months period. As such, Profit before taxation increased by 118% to $110.57 million relative to $50.65 million for the corresponding period last year.
The company reported a 336% increase in taxes paid year-to-date to $27.64 million compared to the $6.33 million paid for the same period last year. Nevertheless, Net Profit from continuing operations rose by 87% to $82.93 million (2020: $44.31 million). Net profit for the quarter totalled $33.04 million relative to net loss of $7.27 million booked the prior year’s quarter.
Profit attributable to shareholders totalled $82.93 million (2020: $65.61 million). For the quarter profit attributable to shareholders amounted to $33.04 million, relative to loss of $7.27 million booked twelve months earlier.
Total comprehensive income for the period totalled $170.70 million, relative to the $65.61 million reported twelve months prior. For the quarter total comprehensive income amounted to $117.39 million in comparison to the comprehensive loss of $7.27 million reported in 2020.
The company noted, “Management and the Board are exploring all avenues for restoring our exports to CARICOM which constitute about 20% of our sales. The loyalty of our customers in both the domestic and export markets is strong, and we hope they will bear with us while we navigate the rough times.”
Earnings-per-share (EPS) for the period amounted to $0.15 (2020:$0.08), while EPS for the quarter amounted to $0.06 (2020: LPS $0.01). The twelve-month earnings-per-share amounted to $0.17. The number of shares used in our calculation is 564,990,000. Notably, BPOW stock price closed the trading period on March 05, 2021 at $3.10 with a corresponding P/E ratio of 17.89 times.
Balance Sheet at a glance:
The company, as at January 31, 2021, recorded total assets of $1.20 billion, an increase of 18% when compared to $1.02 billion recorded last year. This was as a result of the Company booking ‘Investment’ and ‘Inventories’ of $521.65 million (2020: $402.20 million) and $296.53 million (2020: $161.31 million). This was however tempered by the $116.44 million decline in ‘Cash and cash equivalents’ to $90.18 million (2020: $206.62 million).
Total Stockholders’ Equity as at January 31, 2021 closed at $1.12 billion (2021: $951.26 million). This resulted in a book value of $1.98 (2020: $1.68).
Disclaimer:
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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
