February 10, 2023
Figures are quoted in United States dollars (except where it is indicated otherwise):
Caribbean Producers Jamaica Limited (CPJ) for the six months ended December 31, 2022, revenues rose 23% from $58.08 million in 2021 to close the period under review at $71.38 million. For the second quarter, the company also posted a 16% increase in revenues to close at $38.32 million relative to $33.06 million for the same quarter of 2021. CPJ noted that, “Revenue growth in Q2 was driven largely by incremental growth in volumes and the introduction of new product lines and the development of online business.”
Cost of operating revenue also showed a 27% increase closing the period at $49.97 million relative to $39.33 million for the corresponding period in 2021. For the quarter, the company recorded a 21% increase in cost of operating revenue to close at $27.14 million relative to $22.45 million for the comparable period in 2021.
Consequently, CPJ recorded an increase in gross profits to $21.41 million (2021: $18.76 million). Gross profits for the quarter also increased from $10.61 million in 2021 to $11.18 million in 2022.
Selling and administrative expenses were $13.15 million, a 39% increase on the $9.49 million posted for the prior year. Depreciation for the period decreased marginally by 4% closing the period at $2.04 million (2021: $2.14 million). Expected Credit Losses amounted to $67,786 (2021: $98,032). The Company noted that, “The increases are primarily driven by increases in staffing levels as the Company positions itself for continued growth.”
Other operating income totaled; $27,896 this compares with operating income of $557,864 booked in 2021.
The company booked a profit before finance costs, income and taxation of $6.18 million relative to a profit of $7.59 million in 2021.
Finance costs amounted to $1.62 million (2021: $1.50 million). Finance income closed at $468 (2021: $4,523). As such profit before taxation was $4.56 million compared to a profit of $6.10 million in 2021.
After taxation charge of $1.10 million (2021: $679,568 ), net profit for the six months amounted to $3.47 million relative to a profit of $5.42 million in 2021. While for the quarter, net profit amounted to $1.75 million relative to a profit of $3.75 booked last year.
Net profit attributable to shareholders for the six months amounted to $3.35 million relative to a profit of $5.23 million in 2021. While for the quarter, net profit attributable to shareholders amounted to $1.71 million relative to a net profit attributable to shareholders of $3.62 million booked last year.
As a result, earnings per share (EPS) for the six months amounted to US0.30 cent compared to earnings per share (EPS) of US0.48 cent in 2021. EPS for the quarter amounted to US0.16 cent relative to EPS of US0.34 cents twelve months prior. The twelve months trailing earnings per share amounted to US0.51 cent (J$0.78). The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ closed trading on February 09, 2023, at J$11.13 with 14.27 times.
CPJ stated, “The Company is advancing its B2B & B2C online platforms in an effort to reach a broader client base through technology. We are also exploring technologies that will assist with the reduction of energy costs.”
Balance Sheet at a glance:
As at December 31, 2022, CPJ’s total assets amounted to $89.08 million, a 14% increase from the $77.90 million booked in 2021. The increase was mainly attributable to a 59% increase in ‘Cash and cash equivalent’ to $8.01 million (2021: $5.04 million) and a 37% increase in ‘Inventories’ to $35.37 million (2021: $25.79 million). This was however partially tempered by a decrease in ‘Intagible Assets’ which amounted to $41.516 (2021: $11.30 million).
Shareholder’s Equity totaled $26.50 million (2021: $20.67 million) resulting in a book value per share of approximately US2.41 cents (2021: US1.90 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.
