CPJ reports year end net profit attributable to shareholders of US$7.51 million

October 13, 2022

Figures are quoted in United States dollars (except where it is indicated otherwise):

Caribbean Producers Jamaica Limited (CPJ) for the year ended June 30, 2022, reported a 106% increase year on year in gross operating revenues which closed at $119.96 million compared to the $58.18 million reported the prior year.  For the fourth quarter, the company posted a 59% increase in revenues to close at $33.52 million relative to $21.07 million for the same quarter in 2021. Management highlighted that “the favorable results were driven by strong cost controls, inflationary increases, and incremental growth in volumes as our products continue to maintain a strong and resilient position in the hospitality and retail sectors, as the Company saw the return of the hospitality industry after the impact of COVID-19.”

Cost of operating revenue showed a 96% increase closing the period at $85.12 million relative to $43.43 million for the previous year. For the quarter the company recorded a 62% increase in the cost of operating revenue to close at $26.29 million relative to $16.22 million for the comparable period in 2021. Consequently, CPJ recorded a 136% increase in gross profit to $34.84 million (2021: $14.75 million), while gross profit for the quarter amounted to $7.23 million relative to a gross profit of $4.85 million in 2021.

Selling and administrative expenses were $18.24 million, a 50% increase from the $12.14 million posted last year. Depreciation for the year was $4.21 million when compared to the corresponding prior year of $4.19 million. Expected Credit losses totaled $387,107 (2021: $74,820).

Other operating income totalled $403,695; this compares with other operating income of $1.32 million booked a year ago.

Operating profit totalled $12.41 million relative to an operating loss of $335,450 in 2021.

Finance income amounted to $5,154 (2021: $33,099), while Finance cost was $2.95 million (2021: $2.22 million). As such, profit before taxation was $9.47 million compared to a loss of $2.52 million in 2021.

Net profit for the financial year amounted to $7.72 million compared to a net loss of $2.52 million booked in 2021 following taxation of $1.74 million (2021: nil). On the other hand, the Company reported net profit of $703,873 for the quarter ended June 2022 relative to a net profit of $1.27 million booked last year.

Net profit attributable to shareholders for the year amounted to $7.51 million, this compares with the net loss attributable to shareholders of $2.26 million booked twelve months earlier.

As a result, earnings per share (EPS) for the year amounted to US0.6826 cent compared to loss per share (LPS) of US0.2058 cent in 2021. EPS for the quarter amounted to US0.06 cent relative to earnings per share of US0.12 cent a year prior. The number of shares used in our calculations amounted to 1,100,000,000 units. CPJ’s stock price closed the trading period on October 12, 2022, at a price of $14.01 with a corresponding P/E ratio of 13.54 times.

The Company also highlighted that “We look forward to the opening of the new CPJ Market Drax Hall and will continue to work on enhancing the food-service product line in our CPJ Markets. The Company continues to upgrade infrastructure, including our trucking fleet, in anticipation for the growth in tourism and to continuously improve our level of service.”

Balance Sheet Highlights: 

As at June 30, 2022, CPJ’s total assets amounted to $88.46 million, a 33% increase year over year from the $66.33 million as at June 30, 2021. The increase was due mainly to an increase in ‘Inventories’ which rose 87% to $40.16 million versus $21.43 million reported in 2021. ‘Accounts receivables’ also contributed to the upward movement in the asset base with a 20% increase to $18.49 million from $15.39 million in 2021.

CPJ noted,  “The increase in inventories was a proactive measure enacted due to the ongoing challenges in the global supply chain, where stock holdings were adjusted to ensure sufficient stock was on hand to service the market and keep pace with customer demands.”

Additionally, “CPJ Group continues to maintain a solid financial position and reflects positive management oversight over the working capital health of the Group. Whilst there was an increase in the growth of the accounts receivables portfolio, the accounts receivable days have improved over the last year, revealing the strength of the Company’s credit management policies and procedures.”

Shareholder’s Equity as at June 30, 2022 totalled at $23.15 million (2021: $15.64 million) resulting in a book value per share of approximately US2.105 cents (2021: US1.422 cents).


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.