December 1, 2021

Blue Power Group Limited (BPOW), for the six months ended October 31, 2021 booked a 25% decline in revenue to total $211.10 million compared to $281.96 million for the corresponding period in 2020. Revenue for the quarter totalled $95 million, 32% below last year’s corresponding quarter of $140.40 million.

BPOW highlighted, “We will begin to co-pack an expanded range of products for the Jamaican market and intend to return our focus to developing the exports of soap in CARICOM and non-CARICOM markets. Despite the challenges faced by the business, we are satisfied that we have the necessary resources and skills to profitably diversify, transform , and grow the Blue Power Group.”

Cost of sales for the period contracted by 21% to $131.65 million from $166.64 million last year. This further translated into gross profit amounting to $79.44 million, a decline of 31% when compared to $115.31 million in 2020. Gross profit for the second quarter fell 45% to close at $29.93 million (2020: $54.79 million).

Administrative expenses saw an increase of 21%, to total $81.64 million (2020: $67.58 million). Thus, resulting in loss from operations of $6.10 million, relative to 2020’s operating profit of $36.90 million. For the second quarter loss from operations amounted to $14.12 million versus operating profit of $16.57 million in 2020.

Impairment losses on trade receivables closed at $3.79 million (2020: $10.83 million), while impairment losses on investment amounted to $109,102 (2020: nil).

Other income, for the period totalled $49.36 million a significant increase when compared to the $15.05 million recorded for the same period last year.

In addition, BPOW reported finance costs of $1.15 million for the period, an 18% increase when compared to $969,696 in the year prior. Finance income fell by 10% to $14.06 million relative to $15.53 million for the corresponding period in 2020.

Profit before tax totalled $202.72 million compared to $66.52 million in 2020 followed by tax charges of $7.68 million (2020: $16.63 million).

Net Profit for the period totalled $195.04 million, a 291% increase compared to $49.89 million booked in 2020, while net profit for the quarter amounted to $148.63 million (2020: $16.79 million).

Total comprehensive income totalled $183.04 million for the period versus $53.31 million last year. While for the quarter, total comprehensive income amounted to $113.96 million (2020: $32.75 million).

Earnings per share (EPS) for the period totalled $0.35 (2020: $0.09). EPS for the second quarter amounted to $0.263 relative to $0.030 twelve months earlier. The twelve-month trailing EPS is $0.46. The number of shares used in our calculations amounted to 564,990,000 units. BPOW’s stock price closed the trading period on December 1, 2021 at $3.01 with a corresponding P/E ratio of 6.76 times.

Balance Sheet at a glance:

As at October 31, 2021, total assets amounted to $1.57 billion, up 49% from the balance of $1.05 billion as at October 31, 2020. The increase in total assets was as a result of the increase in ‘Investment’ which increased by 51% to end at $652.40 million (2020: $431.65 million), and ‘Property, plant and equipment’ which amounted to $258.18 million (2020: $151.34 million).

Shareholders’ Equity of $1.43 billion was reported (2020: $1 billion) which resulted in a book value per share of $2.53 (2020: $1.77).

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