BPOW reports 40% increase in three months net profit

September 7, 2021

Blue Power Group Limited (BPOW) for the three months ended July 31, 2021, revenues decreased by 23%, year over year, totalling $116.10 million (2020: $150.25 million). Management noted, “The main contributor to this decline was the suspension of our exports to the Caricom region. The Government of Jamaica has elected to discontinue the issuance of Certificates of Origin for soap manufactured in Jamaica with imported soap noodles.”

Cost of Sales for the quarter contracted by 25%, moving from $89.22 million in 2020 to $66.59 million for the period under review. As such, Gross Profit amounted to $49.51 million, an 19% reduction on the $61.03 million recorded for the three months ended July 31, 2020.

Administrative Expenses for the quarter rose 42%, totalling $43.04 million relative to last year’s $30.29 million. Impairment gains on trade receivables amounted to $1.63 million relative to last year’s impairment losses of $9.91 million.

BPOW reported $36.45 million for Other Income for the first quarter relative to $7.24 million recorded for the corresponding period in 2020.

Finance Cost of $365,899 was recorded for the first quarter compared to a finance cost of $309,055 in the year prior, while Finance Income totalled $9.29 million relative to the $16.37 million for the same quarter in 2020.

Consequently, Profit before taxation reflected a 21% increase year over year to $53.39 million versus $44.14 million booked for the prior year’s corresponding quarter.

After taxation of $6.98 million (2020: $11.03 million), Profit from continuing operations for the first quarter amounted to $46.41 million compared to $33.10 million, a 40% increase year over year.

Total comprehensive income amounted to $69.08 million for the three months ended July 31, 2021, relative to the $20.57 million booked last year.

Earnings per share for the quarter totaled $0.08 (2020 $0.06), while for the trailing twelve months EPS was $0.21. The number of shares used in this calculation was 564,990,000. Notably, BPOW’s stock price closed the trading period on September 6, 2021, at a price of $3.05 with a corresponding P/E arti of 14.37 times.

Balance Sheet at a glance:

As at July 31, 2021, total assets amounted to $1.41 billion, up 34% million from the balance of $1.05 billion a year prior. The largest contributor to the increase in ‘Investment’ which closed the quarter at $677.14 million (2020: $414.02 million).

Shareholders’ Equity increased by approximately 36% amounting to $1.33 billion (2020: $976.68 million) with a book value per share of $2.35 (2020: $1.73).








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.