INDIES reports 13% decline in year end net profits

Date: January 10, 2018

Indies Pharma Jamaica Limited (INDIES), for the year ended October 31, 2018 reported revenues for the twelve months ended October 31, 2018 of $636.17 million, an increase of 3% when compared with the $620.35 million booked last year.

Cost of sales amounted to a total of $243.38 million relative to the $208.76 million reported for the same period last year, a 17% year over year increase.

As such, gross profit decreased 5% or $18.80 million to a total of $392.79 million relative to the $411.59 million for the FY2017.

Other operating income amounted to $813,221 a decline of 44% from last year’s $1.45 million.

Administrative expenses jumped up by 7% to close the period at $239.87 million (2017: $224.87 million).

This led to a dip in the company’s profit from operations from $188.17 million in 2017 to $153.74 million of this year.

Notably, INDIES reported $4.48 million in foreign exchange losses for the FY2018 (2017: nil), while ‘finance cost- loan interest’ fell to $11.21 million (2017: $15.83 million).

INDIES reported a profit before tax of $138.04 million relative to the $172.35 million reported in 2017.

Consequently, net profit for the year amounted to $119.70 million relative to a net profit $137.30 million in 2017, after a tax charge of $18.34 million (2017: $35.04 million).

Earnings per share (EPS) for the period amounted $0.09 compared to and (EPS) of $0.10 recorded in 2017. The number of shares used in the calculations is 1,332,536,649. The stock last traded on January 10, 2018 at $3.28.

Balance Sheet at a glance:

As at October 31, 2018, total assets amounted to $851.26 million, 3% more than $825.49 million the year prior. This was as a result of increased ‘Cash and cash equivalents’ which closed $101.39 million (2017: $74.17 million). This growth was tempered by the decline in ‘Property, plant and equipment’ and ‘Inventories’ which closed at $92.42 million (2017: $104.80 million) and $155.19 million (2017: $166.20 million) respectively.

Shareholders’ Equity totalled $668.64 million (2017: $319.99 million) resulting in a book value per share of $0.50 (2017: $0.24).

Disclaimer: 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.

2019-01-10T21:35:20+00:00