July 12, 2021

Blue Power Group Limited (BPOW) for the year ended April 30, 2021, recorded an increase in revenues by 10% to $534 million relative to $485.44 million recorded in 2020. For the quarter, revenue declined 71% from $142.98 million in 2020 to $40.91 million in the period under review.  The Company noted “BPGL earns its revenue primarily from the production and sale of soap for Jamaica and export markets. The business earns additional income from property rental and warehousing services, as well as management fees, interest and dividends.”

Cost of Sales for the period increased by 8% to $332.24 million (2020: $307.48 million). Gross profit increased by 13% to $201.76 million (2020: $177.96 million). For the fourth quarter, cost of sales fell by 63% to $32.85 million (2020: $89.96 million); consequently, gross profit fell by 85% to $8.06 million (2020: $53.02 million).

Administrative expenses amounted to $152.19 million, a 4% increase relative to $146.94 million last year.  Impairment gains on trade receivables amounted to $7.52 million relative to losses of $11.54 reported a year prior. Whereas impairment gains on investment totalled $747,900 relative to losses of $4.65 million reported in 2020.  Consequently, operating profit totalled $57.83 million, 290% more than the $14.83 million for the prior year’s period. For the quarter, operating loss amounted to $10.14 million, when compared to operating profit of $1.28 million for the corresponding quarter last year.

Other income amounted to $35.21 million relative to $20.49 million booked in the prior year.

Finance income amounted to $43.41 million (2020: $39.45 million), while Finance Cost totalled $2.11 million (2020: $1.56 million) for the year end. As such, profit before taxation rose by 84% to $134.34 million relative to $73.20 million for the corresponding period last year.

The company reported a 99% increase in taxes in the year to $27.77 million compared to the $13.92 million paid in the prior year. Nevertheless, profit from continuing operations rose by 80% to $106.57 million (2020: $59.28 million). Net profit for the year totalled $106.57 million relative to the $80.58 million booked last year. Net profit for the quarter totalled $23.65 million relative to $14.97 million the prior year’s quarter.

Comprehensive income amounted to $308.34 million (2020: $70.32 million) for the year ended April 30, 2021.

Earnings-per-share for the period amounted to $0.19 (2020: $0.14), while earnings-per-share for the quarter amounted to $0.04 (2020: $0.03). The number of shares used in our calculation is 564,990,000. Notably, BPOW stock price closed the trading period on July 9, 2021, at $3.55 with a corresponding P/E ratio of 18.82 times.

Notably, Management mentioned “Our announcement to the Jamaica Stock Exchange (JSE) has informed members of a lawsuit filed against four agencies of the Government of Jamaica and BPGL by Dominica Coconut Products Successors Limited. We have engaged the services of an attorney to respond to the case. Additionally, it was noted that, “BPGL values its role as a Jamaican manufacturer with over twenty years of experience producing soaps for local procurement of raw material and packaging from local, regional and international markets on competitive terms and without onerous duties. We understand that this position is generally consistent with the laws of Jamaica and Jamaica’s development goals and goals for its emerging manufacturing and logistics sectors. As such, we are pursuing a number of avenues to improve our sales in the domestic and non-Caricom markets while taking steps to regain our markets in Caricom countries.”

Balance Sheet at a glance:

The Company, as at April 30, 2021, recorded total assets of $1.35 billion, an increase of 33% when compared to $1.01 billion recorded last year. This was as a result of the Company booking ‘Investment’ of $658.94 million relative to $427.58 million reported the prior year. Additionally, there was an 83% increase in ‘Inventories’ which closed at $298.59 million relative to $163.57 million recorded as at April 30, 2020.

Total Stockholders’ Equity as at April 30, 2021 closed at $1.26 billion (2020: $956.11 million). This resulted in a book value per share of $2.22 (2020: $1.69).

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