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).

 

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.

2019-03-11T21:31:02+00:00