May 10,2018
Expressed in United States dollars (except where it is indicated otherwise)
Caribbean Producers Jamaica Limited (CPJ) for the nine months ended March 31, 2018 reported Revenues growing 13% from $72.33 million, to close the period at $81.65 million compared to the prior year. For the third quarter, the company posted a 6% growth in revenues to close at $27.74 million relative to $26.30 million for the same quarter of 2017. CPJ noted that, “Sales efforts were geared towards a focused approach to developing market share with the innovation of new product offerings. Sales of Dairy, Dry Goods and Wine increased in key target markets.”
Cost of goods sold showed a 14% increase closing the period at $59.37 million relative to $52.17 million for the corresponding period in 2017. For the quarter, the company recorded a 5% increase in cost of goods sold to close at $19.85 million relative to $18.89 million for the comparable period in 2017.
Consequently, CPJ recorded a 10% increase in gross profits to $22.28 million (2017: $20.16 million) for the nine months. Gross profits for the quarter however improved to $7.89 million from $7.40 million in 2017. The Company noted, “CPJ St. Lucia contributed to US$2.58 million or 11.6% of the gross profit.”
Selling and administrative expenses were $16.34 million, a 12% increase on the $14.55 million posted for the prior year. The company stated that this was, “primarily due to exchange movement on Jamaican dollar expenses versus United States revenues as well as growth related expenses in offshore operations.”
Depreciation fell by 8% closing the period at $1.86 million (2017: $2.01 million).
Other operating income totaled $72,894; this compares with an operating income of $61,969 booked in 2017.
Profit before finance costs, income and taxation improved 13% to total $4.15 million relative to $3.66 million in 2017.
Finance costs amounted to $1.36 million (2017: $1.45 million). Finance income decreased by 65% to close at $320 (2017: $909). As such profit before taxation was $2.79 million compared to a profit of $2.21 million in 2017.
Net profit attributable to shareholders for the nine months amounted to $2.31 million (2017: $1.90 million), while for the quarter, net profit amounted to $847,119 relative to a net profit $929,172 million booked last year, a 9% decline.
As a result, earnings per share (EPS) for the nine months amounted to US0.21cents compared to US0.17 cents in 2017. EPS for the quarter amounted to US$.077 cents relative to US$0.084 cents. The trailing twelve month EPS amounted to US0.271 cents. The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ closed trading on May 09, 2018 , at J$5.29.
CPJ stated, “The performance to date has been aligned with the Company’s internal forecast and the Q4 should continue to meet expectation subject to any extraordinary event. In May the company successfully closed a private placement of Notes on the amount of J$500 million with Scotia Investments as the lead broker. The company will use the proceeds of the offer to pay out existing debt which matures in May and finance the expansion of CPJ’s growing operations. The company expects the implementation of an enchanted warehouse management system to create value and efficiency with its future expansion of its distribution capacity to drive operational cost efficiencies to the bottom line. ”
Balance Sheet Highlights:
As at March 31, 2018 CPJ’s total assets amounted to $60.60 million, a 10% increase from the $55.33 million booked in 2017. The growth year over year was linked to upward movements in accounts receivables (28%) and inventories (11%). Accounts receivables and inventories as at March 2018 amounted to US$18.93 million (2017: US$14.81 million) and US$25.88 million (2017: US$23.23 million) respectively.
Shareholder’s Equity totaled $23.88 million (2017: $21.20 million) resulting in a book value per share of approximately US2.17 cents (2017: US1.93cents).
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