INDIES reports 20% increase in first quarter net profit

February 16, 2021

Indies Pharma Jamaica Limited reported revenue of $223.53 million, 15% higher than the $193.72 million booked in 2020.

Cost of Sales increased 30% to close at $85.42 million (2020: $65.86 million). Gross profit increased by 8%, amounting to $138.11 million for the period relative to $127.86 million in 2020.

Other operating income for the period declined by 70% to close at $209,621 (2020: $698,370).

Additionally, administrative and other expenses fell by 18%, moving from $91.78 million in 2020 to $74.89 million.

As such, operating profit increased by 72% from $36.78 million recorded in 2020 to $63.44 million for the quarter ended January 31, 2021. There was a finance costs of $15.58 million for the quarter ended January 2021 (2020: nil) “mainly due to the interest payment to Bond holders made the company to settle with 20% year on year growth in the net profit” according to INDIES. While foreign exchange loss amounted to $331.68 million from a gain of $2.83 million in 2020.

Profit before taxation increased by 20% to close the period at $47.53 million (2020: $39.61 million). INDIES incurred no taxes for the quarter, thus net profit amounted to $47.53 million (2020: $39.61 million). Total Comprehensive Income amounted to $47.53 million for the quarter ended January 31, 2021 relative to $39.61 million in 2020.

Consequently, earnings per share (EPS) for the quarter amounted to $0.04 compared with $0.03 for the corresponding period of last year. The trailing twelve months earnings per share amounted to $0.16.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price closed the trading period on March 15, 2021 at $3.16 with a corresponding P/E of 19.62 times.

Balance Sheet at a glance:

Assets totalled $1.76 billion as at January 31, 2021 relative to $927.29 million a year prior. The increase in total assets was largely due to a 372% surge in ‘Property, plant and equipment’ to total $1.16 billion (2020: $244.92 million).

Total shareholder’s equity amounted to $834.27 million (2019: $734.84 million) with book value per share amounting to $0.63 (2020: $0.55).


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