INDIES recorded 100% increase in first quarter net profits

Date: March 11, 2019

Indies Pharma Jamaica Limited reported revenue of $168.18 million, 11% higher than the $151.20 million booked in 2018.

Cost of Sales decreased 16% to close at $49.94 million (2018: $59.24 million), This resulted in Gross profit increasing by 29%, amounting to $118.24 million for the period relative to $91.96 million in 2018.

Other operating income for the period, declined by 74% to close at $109,005 (2018: $416,561). Additionally, administrative and other expenses rose by 25%, moving from $57.86 million in 2018 to $72.08 million. According to INDIES, the movement was, “due mainly to costs related to increases in business activity. Significant increases were incurred for security expenses – went up by 106.73%, and advertising and promotion that increased by 47.82%. Motor vehicle, travel and entertainment expenses increased dramatically over the comparative three-month period that ended January 2018 and January 2019 from $3.13M to $5.5M correspondingly, a 75% increase over the matching period in the previous year.”

As such, operating profit rose by 34% from $34.52 million in 2018 to $46.27 million. Finance costs fell 98% to close the period at $77,048 (2018: $4.05 million), while foreign exchange gain amounted to $716,791 on from a loss of $1.88 million in 2018.

Profit before taxation increased by 64 % to close the period at $46.91 million (2017: $28.59 million). INDIES incurred no taxes for the quarter compared to $5.12 million, thus net profit amounted to $46.91 million (2017: $23.47 million).

Consequently, earnings per share (EPS) for the quarter amounted to $0.04 compared with $0.02 for the corresponding period of last year. The trailing twelve months earnings per share amounted to $0.11.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price close the trading period on March 11, 2019 at $3.08.

Balance Sheet at a glance:-

Assets totaled $756 million as at December 31, 2016 relative to $613.47 million a year prior. The decrease in total assets was largely due to a decline in ‘Receivables’ by $104.99 million to total $137.80 million.

Equity attributable to stockholders of parent amounted to $717.28 million (2017: $343.05 million) with book value per share amounting to $0.54 (2017: $0.26).


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