February 11, 2021
In United States dollars (except where it is indicated otherwise)
Caribbean Producers Jamaica Limited (CPJ) for the six months ended December 31, 2020, revenues fell by 59% from $59.47 million in 2019 to close the period under review at $24.39 million. For the second quarter, the company also posted a 54% decrease in revenues to close at $15.05 million relative to $32.38 million for the same quarter of 2019. CPJ noted that, “After recording improved operating revenue in Q1, continued the trend in Q2 of the current fiscal year. The Group reported gross operating revenue of US$15.05M which is 61% more than the QI operating revenue. The overall Group operating revenue for the half year was US$24.39M which is 5.14% more than the projections made by the Group for the COVID-19 impacted fiscal year 2020-2021.”
Cost of operating revenue also showed a 59% decrease closing the period at $18.02 million relative to $44.20 million for the corresponding period in 2019. For the quarter, the company recorded a 54% decrease in cost of operating revenue to close at $11.10 million relative to $23.88 million for the comparable period in 2019.
Consequently, CPJ recorded a decrease in gross profits to $6.37 million (2019: $15.27 million). Gross profits for the quarter also decreased from $8.50 million in 2019 to $3.94 million in 2020.
Selling and administrative expenses were $6.19 million, a 45% decrease on the $11.33 million posted for the prior year. Depreciation for the period fell marginally by 1% closing the period at $2.12 million (2019: $2.13 million).
Other operating income totaled $132,623; this compares with operating income of $100,058 booked in 2019.
The company booked a loss before finance costs, income and taxation of $1.91 million relative to a profit of $1.87 million in 2019.
Finance costs amounted to $894,390 (2019: $1.25 million). Finance income closed at $16,235 (2019: $592). As such loss before taxation was $2.79 million compared to a profit of $620,581 in 2019.
Net loss for the six months amounted to $2.79 million relative to a profit of $518,627 in 2019. While for the quarter, net loss amounted to $850,371 relative to a net profit $836,023 booked last year. CPJ noted, “The loss includes IFRS 9 & 16 adjustments of US$616K, depreciation charges of US$1.51M and staff restructuring costs of US$293K.”
Net loss attributable to shareholders for the six months amounted to $2.69 million relative to a profit of $524,171 in 2019. While for the quarter, net loss attributable to shareholders amounted to $837,492 relative to a net profit attributable to shareholders of $782,372 booked last year.
As a result, loss per share (LPS) for the six months amounted to US0.24 cents compared to an earning per share (EPS) of US0.05 cents in 2019. LPS for the quarter amounted to US0.08 cents relative to EPS of US0.08 cents twelve months prior. The twelve months trailing loss per share amounted to US0.66 cents. The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ closed trading on February 10, 2021, at J$2.76.
CPJ stated, “The group, since the beginning of the current fiscal year, has maintained strong cash balances of over US$5M, even while continuing to invest over US$1.5M for important operational infrastructure in IT, meat plant equipment, fleet expansion and the construction of a larger retail outlet in St. Lucia.”
Balance Sheet at a glance:
As at December 31, 2020, CPJ’s total assets amounted to $57.10 million, a 24% decline from the $75.32 million booked in 2019. Non-current assets closed at $20.36 million (2019: $22.28 million) while current assets amounted to $36.75 million (2019: $53.03 million). The 9% decline in Non-current assets was mainly attributed to the 17% contraction of ‘Intangible assets’ which ended at $11.16 million (2019: $13.45 million). Whilst the 31% decline in current assets largely due to a 48% reduction in ‘Account receivable’ which amounted to $11.65 million (2019: $22.56 million).
Shareholder’s Equity totaled $15.33 million (2019: $22.50 million) resulting in a book value per share of approximately US1.39 cents (2019: US2.05 cents).
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