INDIES reports 13% increase in year end net profits

Date: December 16, 2019

Indies Pharma Jamaica Limited (INDIES), reported revenues for the twelve months ended October 31, 2019 of $725.90 million, an increase of 14% when compared with the $636.17 million booked last year. Revenues for the fourth quarter decreased 20% to $150.09 million (2018: $186.90 million).

Cost of sales amounted to a total of $223.68 million relative to the $243.38 million reported for the same period last year, an 8% decrease year over year.

As such, gross profit increased 28% or $109.43 million to a total of $502.22 million relative to the $392.79 million for the FY2018. Gross profit for the quarter closed at $115.21 million (2018: $104.16 million).

Other operating income for the year ended amounted to $710,400 a decline of 13% from last year’s $813,221.

Administrative expenses jumped up by 56% to close the period at $372.13 million (2018: $238.61 million). The company also noted that, “goods valuing approximately 46 million expired during the twelve-month period ending October 2019.”

This led to a dip in the company’s profit from operations from $154.99 million in 2018 to $130.80 million of this year. Profit from operations for the quarter closed at $19.16 million relative to $47.03 million recorded for the same quarter of 2018.

Notably, INDIES reported $4.71 million in foreign exchange gains for FY2019 (2018 foreign exchange losses: $4.48 million), while ‘finance cost- loan interest’ fell to $196,728 (2018: $11.27 million).

INDIES reported a profit before tax of $135.31 million relative to the $139.24 million reported in 2018.

Consequently, net profit for the year increased 13% to $135.31 million relative to a net profit $119.70 million in 2018, there was no tax charge for 2019, compared to $19.54 million in 2018. For the fourth quarter, net profit was $22.22 million (2018: $37.61 million)

Total comprehensive income totalled $140.46 million relative to $119.70 million in 2018, a 17% increase.

Earnings per share (EPS) for the period amounted $0.10 compared to and (EPS) of $0.09 recorded in 2018. For the quarter, EPS totalled $0.02 (2018: $0.03). The number of shares used in the calculations is 1,332,536,649. The stock last traded on December 13, 2019 at $3.24.

Balance Sheet at a glance:

As at October 31, 2019, total assets amounted to $778.54 million, 9% less than $851.26 million the year prior. This was as a result of a decline in ‘Related companies’ which closed $7.58 million (2018: $198.61 million). This decline was tempered by the increase in ‘Receivables’ which closed at $292.31 million (2018: $266.41 million), as well as a growth in “Property, plant and equipment” to $137.13 million (2018: $92.42 million).

Shareholders’ Equity totalled $702.50 million (2018: $668.64 million) resulting in a book value per share of $0.53 (2018: $0.50).

Management noted that, “the company remains debt free, which indicates its good financial health and shows that it is in a good position for future growth.”


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