February 18, 2020

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

Caribbean Producers Jamaica Limited (CPJ) for the six months ended December 31, 2019, revenues increased by 11% from $53.73 million in 2018 to close the period under review at $59.47 million. For the second quarter, the company also posted a 10% increase in revenues to close at $32.38 million relative to $29.42 million for the same quarter of 2018.  CPJ noted that, “the growth in revenues was observed both in onshore and offshore operations. This incidentally is the best performing half tear for the group thus far.”

Cost of operating revenue showed a 10% increase closing the period at $44.20 million relative to $40.26 million for the corresponding period in 2018. For the quarter, the company recorded a 7% increase in cost of operating revenue to close at $23.88 million relative to $22.29 million for the comparable period in 2018.

Consequently, CPJ recorded an increase in gross profits to $15.27 million (2018: $13.47 million). Gross profits for the quarter also increased from $7.13 million in 2018 to $8.50 million in 2019.

Selling and administrative expenses were $11.33 million, a 3% decrease on the $11.69 million posted for the prior year. Depreciation for the period increased by 76% closing the period at $2.14 million (2018: $1.21 million).

Other operating income totaled $100,058; this compares with operating expenses of $98,724 booked in 2018.

The company booked a profit before finance costs, income and taxation of $1.87 million relative to a loss of $226,327 in 2018.

Finance costs amounted to $1.25 million (2018: $800,764). Finance income improved 113% to close at $592 (2018: $278). As such profit before taxation was $620,600 compared to a loss of $1.03 million in 2018.

Net profit for the six months amounted to $518,627 relative to a loss of $1.13 million in 2018. While for the quarter, net profit amounted to $836,023 relative to a net profit $164,722 booked last year.

Net profit attributable to shareholders for the six months amounted to $524,171 relative to a loss of $1.19 million in 2018. While for the quarter, net profit attributable to shareholders amounted to $782,372 relative to a net profit attributable to shareholders of $89,874 booked last year.

As a result, earnings per share (EPS) for the six months amounted to US0.05 cents compared to a loss per share of US0.11 cents in 2018.  EPS for the quarter amounted to US0.08 cents relative to US0.01 cents. The twelve months trailing earnings per share amounted to US0.05 cents. The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ closed trading on February 17, 2020, at J$4.70.

CPJ stated, “The group has adopted IFRS 16 Leases effective July 1, 2019 which has resulted in the introduction of a single, on-balance sheet accounting model for lessees.” Additionally, the Company noted, “The robust growth in the sales revenue and profitability for the half year, augurs well for the group as we continue to make progress in improving our operational efficiencies which should contribute to operating profits for the current fiscal year.”

Balance Sheet Highlights:

As at December 31, 2019, CPJ’s total assets amounted to $75.32 million, a 15% increase from the $65.32 million booked in 2018. Non-current assets closed at $22.28 million (2018: $14.60 million) while current assets amounted to $53.03 million (2018: $50.72 million).

Shareholder’s Equity totaled $22.50 million (2018: $22.31 million) resulting in a book value per share of approximately US2.05 cents (2018: US2.03 cents).

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