November 14, 2019
Figures are quoted in United States dollars (except where it is indicated otherwise):
Caribbean Producers Jamaica Limited (CPJ), for the first three months ended September 30, 2019 reported that revenues increased by 11%, to close the period at $27.08 million compared to the $24.31 million for the same period last year. According to the Company “the first quarter is traditionally considered a soft quarter based on tourist arrivals. The group increased market share with new hotel contracts and exceeded projections for the period.” Moreover, Management further stated that, “the robust growth in sales revenue and return to operating profitability in Q1 shows momentum for the tourist season ahead. This growth not only represents the continuous aggressive sales strategy but also a deepening of the relevance of CPJ offerings in the Jamaican market.”
Cost of operating revenue inched up by 13%, closing the period at $20.31 million relative to $17.98 million for the same period last year. This resulted in gross profits improving by 7% to total $6.77 million relative to $6.34 million in 2018.
Selling and distribution expenses were $5.90 million relative to the $5.91 million posted last year. Depreciation for the period rose by 28% closing the period at $766,543 (2018: $600,416).
Other operating income totalled $50,420 compared with the loss of $4,266 booked the previous year.
Thus, Profit before finance costs, income and taxation totalled $137,852 relative to a loss of $871,222 in 2018.
Finance costs was $455,524 versus $389,651 in 2018, a 17% increase while finance income rose by 156% to $276 (2018: $108). As such, loss before taxation amounted to $317,396 compared to a loss of $1.26 million in 2018.
No taxes were charged for the period under review versus tax charges of $36,591 last year which translated into a net loss for the period amounted to $317,396 million relative to a loss of $1.26 million in 2018.
Loss Attributable to shareholders ended the period at $258,201 relative to a loss of $1.30 million in 2018.
As a result, loss per share for the period amounted to US0.023 cents (2018: US0.117 cents), while the twelve-month trailing EPS totalled US0.013 cents. The stock price closed November 14, 2019 at JMD$4.76. The number of shares used in our calculations amounted to 1,100,000,000 units.
CPJ further noted, “Management believes that the group will continue to build on the momentum it has achieved thus far and continue with the drive and tenacity throughout the remaining quarters of the current fiscal 2020. The objective in this quarter and beyond is to continue working towards value creating initiatives that will not only increase our revenues and gross margins, but also further contain fulfilments costs. The Management remains committed to a strategy on the ability long term shareholder value by creating scale and implementing strategic business transformation initiatives. The desired outcome is to strengthen its platform for growth to accommodate the announced plans for new hotel investments and room expansion.”
Balance Sheet Highlights:
As at September 30, 2019, total assets amounted to $63.48 million, 9% more than its value of $58.04 million booked a year ago.
Shareholder’s Equity as at September 30, 2019, totalled $21.72 million (2018: $22.22 million) resulting in a book value per share of approximately US1.974 cents (2018: US2.020 cents).
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