June 14, 2021
CAC 2000 (CAC), for the six months ended April 30, 2021, reported revenues of $508.52 million versus $573.56 million booked in 2020. Revenues for the quarter fell by 4% to $255.19 million (2020: $266.99 million).
Cost of sales fell by 18% for the six months period to $301.03 million (2020: $368.94 million). Consequently, gross profit for the period increased marginally by 1% closing at $207.49 million compared to $204.62 million for the same period last year. For the quarter, gross profit increased 5% to $94.21 million (2020: $89.81 million).
The Company reported an 11% decrease in total expenses to $190 million (2020: $214.26 million). There was a 11% contraction in General Administration to $178.59 million (2020: $201.50 million). While, Selling and Distribution amounted to $11.42 million (2020: $12.76 million). For the quarter, the Company reported a 14% decline in total expenses which closed the quarter at $93.35 million (2020: $108.48 million).
Other income of $40,000 was recorded for the period under review, down from $1.86 million reported for the same period in the prior year.
Profit before taxation and finance cost, for the six months ended April 30, 2021, amounted to $17.52 million relative to a loss of $7.78 million in 2020.
Net finance costs ended at $12.25 million (2020: $13.75 million). Of this, interest expense for the six months amounted to $13.39 million (2020: $14.40 million). Interest income closed at $21,800 (2020: $153,443) whereas other gains closed at $1.12 million versus other gains of $487,894 reported in the same period last year.
Profit before taxation for the six months amounted to $5.27 million relative to a loss of $21.53 million in 2020. Taxation credit amounted to $3.43 million, as such net profit totalled $8.70 million relative to a loss of $21.53 million in 2020. Net profit for the quarter was reported at $766,016 million compared to a net loss of $22.84 million booked in the corresponding quarter of 2020.
Earnings per share (EPS) for the six months amounted to $0.07 compared to a loss per share (LPS) of $0.17 in 2020, while for the quarter EPS amounted to $0.01 versus a LPS of $0.18 documented in the prior comparable quarter. The twelve months trailing EPS amounted to $0.49. The number of shares used in our calculations is 129,032,258 units. Notably, CAC’s stock price closed the trading period on June 11, 2021 at a price of $10.40 with a corresponding P/E ratio of 21.38 times.
Management noted, “In the first 6 months of our financial year, we have successfully launched air purifiers for homes, offices and cars and look forward to bringing to the market additional products and services to address health and well-being aimed at improving the Internal Air Quality (IAQ) of our customers, which is just one segment of Indoor Environmental Quality (IEQ), along with the development of strategic partnership with experts in complimentary areas.”
Furthermore, CAC noted that “The company was pleased to launch enRvate Limited our joint energy venture with Tropical Battery, which officially opened for business on June 1, 2021, as reported on the Junior Market of the Jamaica Stock Exchange. This venture is in keeping with our strategic priority of diversification and we look forward to what we know will be a wonderful opportunity for all involved.”
Balance Sheet at a glance:
As at April 30, 2021, the Company reported total assets of $1.15 billion, a 1% increase when compared to $1.14 billion a year ago. This was as a result of ‘Trade and Other Receivables’ and ‘Inventories’ which closed at $658.47 million (2020: $561.63 million) and $326.64 million (2020: $326.48 million), respectively. This was however tempered by a downward movement in ‘Cash and Bank Deposits’ which amounted to $119.01 million (2020: $167.53 million).
Shareholders’ Equity as at April 30, 2021 was $397.05 million compared to $345.42 million a year ago. This resulted in a book value per share of $3.08 compared to $2.68 in 2020.
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