November 13, 2023
Figures are quoted in United States dollars (except where it is indicated otherwise):
Caribbean Producers Jamaica Limited (CPJ) for the first quarter ended September 30, 2023 reported a 3% increase in gross operating revenue totalling US$34.22 million compared to US$33.06 million in the corresponding three months last year. Management noted, “The revenue improvement during the quarter was driven by the introduction of new product lines along with the continued development of existing sales channels including our online business.”
Cost of Operating Revenue amounted to US$24.03 million (2022: US$22.83 million), this represents an increase of 5% year over year. Consequently, gross profit decreased marginally to US$10.19 million compared to US$10.24 million for the first quarter ended September 30, 2022.
Selling and Administrative Expenses increased by 6% to close at US$6.55 million (2022: US$6.17 million), while Depreciation increased by 9% from US$1.03 million in 2022 to US$1.13 million for the three months under review. Also, Other operating income for the first quarter amounted to US$29,591 relative to US$6,346 reported in 2022.
Operating profit for the three months amounted to US$2.47 million, a 18% decrease relative to US$3.00 million reported in 2022.
Finance Income totalled US$149, a 30% decrease from the corresponding period last year (2022: US$214).
Finance Cost for the first quarter ended September 30, 2023, amounted to US$841,817, a 11% increase relative to US$755,378 reported in 2022.
Profit Before Taxation for the three months had a 27% decrease to reach US$1.62 million (2022: US$2.24 million).
Taxation for the three months amounted to US$393,943 (2022: US$518,740).
Net Profit for the three months amounted to US$1.23 million, a 28% decrease from the US$1.72 million reported in 2022.
Net Profit attributable to shareholders was US$1.27 million (2022: US$1.64 million).
Managed noted, “The projected increase in sales, the completion and commissioning of the expanded manufacturing plant, improvements in general environment, and the opening of the new stores in St. Lucia, we anticipate continued growth and profits in upcoming periods”.
Consequently, Earnings Per Share for the three months amounted to US0.12 cents (2022: EPS: US0.15 cents). The twelve-month trailing EPS was US0.49 cents and the number of shares used in these calculations was 1,100,000,000.
Notably, CPJ’s stock price closed the trading period on November 10, 2023 at a price of $9.40 with a corresponding P/E ratio of 12.33x.
Balance Sheet Highlights
The company’s assets totalled US$89.72 million (2022: US$86.48 million). The growth in total assets was primarily due to ‘Inventories’ increasing by US$1.44 million to close at US$41.80 million (US$40.37 million). ‘Cash and cash equivalents’ grew 28% to US$5.27 million (2022: US$4.13 million).
Shareholder’s equity was US$30.18 million (2022: US$24.79 million), representing a book value per share of US0.027 cents (2022: US0.023 cents).
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