In United States dollars (except where it is indicated otherwise)

Caribbean Producers Jamaica Limited (CPJ) for the nine months ended March 31, 2021 reported revenue decline of 57% from $85.92 million in 2020, to close the period at $37.11 million. For the third quarter, the Company posted a 52% decline in revenues to close at $12.72 million relative to $26.46 million for the same quarter of 2020. CPJ noted that, “the company has started to see some normalcy return to its business since March 2021 and is hopeful that this marks a pivotal turn in the pandemic due to increased vaccinations. The Group observed growth in revenue in both onshore and offshore operations.”

Cost of operating revenue showed a 57% decrease closing the period at $27.21 million relative to $64.41 million for the corresponding period in 2020. For the quarter, the Company recorded a 55% decrease in cost of operating revenue to close at $9.19 million relative to $20.21 million for the comparable period in 2020.

Consequently, CPJ recorded a 54% decrease in gross profits to $9.90 million (2020: $21.51 million) for the nine months ended March 31, 2021. Gross profits for the quarter also declined, this amounted to $3.53 million from $6.25 million in 2020.

Selling and administrative expenses were $9.37 million, a 43% decrease on the $16.41 million posted for the prior year. Depreciation fell 1% closing the period at $3.18 million (2020: $3.21 million). Other operating income totaled $314,434 ; this compares with an operating income of $93,581 booked in 2020. Whereas, expected credit losses totalled $142,069 (2020: $62,500)  for the nine months ended March 31, 2021.

Loss before finance costs, income and taxation totaled $2.48 million relative to profit of $1.93 million in 2020.

Finance costs amounted to $1.34 million (2020: $1.83 million). Finance income close at $24,534 (2020: $845). As such, loss before taxation was $3.79 million compared to a profit of $100,692 in 2020.

No taxation charge was reported (2020: $101,954) resulting in a net loss of $3.79 million for the nine months ended March 31, 2021 relative to a net loss of $1,262 booked for the corresponding period last year. While for the quarter, net loss amounted to $998,942 relative to a net loss of $519,889 million booked last year.

Net loss attributable to shareholders for the nine months amounted to $3.59 million (2020: $29,609), while for the quarter, net loss attributable to shareholders amounted to $903,258 relative to a loss of $553,780 booked last year.

As a result, loss per share (LPS) for the nine months amounted to US0.326 cents compared to a LPS of US0.003 cents in 2020. LPS for the quarter amounted to US0.08 cents relative to a loss per share of US0.05 cents last year. The trailing twelve-month LPS amounted to US0.693 cents. The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ closed trading on May 13, 2021, at J$3.66.

Balance Sheet at a glance:

As at March 31, 2021, CPJ’s total assets amounted to $54.67 million, a 24% decrease from the $71.99 million booked in 2020. The decline year over year was linked to downward movements in ‘Inventories’ which amounted to $18.66 million (2020: $28.02 million) and ‘Account Receivable’ which ended at $10.49 million (2020: $18.16 million).

Shareholder’s Equity totaled $14.32 million (2020: $21.94 million) resulting in a book value per share of approximately US $1.30 cents (2020: US$2.00 cents).

Disclaimer:

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.