INDIES reports 35% decline in nine months net profit

September 13, 2021

Indies Pharma Jamaica Limited (INDIES), for the nine months ended July 31, 2021, reported revenue of $633.30 million, 12% higher than the $565.83 million booked in 2020. For the third quarter, revenue closed at $207.64 million (2020: $164.87 million).

Cost of sales, for the nine months ended July 31, 2021, grew by 38% to close at $233.18 million (2020: $168.45 million). This resulted in gross profit increasing by a marginal 1%, amounting to $400.11 million for the nine months relative to $397.38 million reported in the previous corresponding period. For the third quarter, gross profit closed at $143.99 million (2020: $119.69 million). The company noted, “The challenges related to the Covid-19 pandemic such as increased logistics cost and currency exchange continues to be unavoidable, however, the company continues to implement strategies to mitigate the impact.”

Other operating income, for the nine months ended July 31, 2021, increased by 126% to close at $3.42 million (2020: $1.52 million).

Additionally, administrative, and other expenses rose slightly by 2% moving from $246.04 million in 2020 to $250.87 million in 2021.  For the quarter, administrative and other expenses closed at $85.20 million (2020: $74.35 million).

As such, operating profit, for the nine months ended July 31, 2020, fell marginally by 0.1% totalling $152.66 million (2020: $152.85 million). For the quarter, operating profit amounted to $61.86 million versus $46.02 million recorded in the prior comparable quarter. Exchange gain for the nine months amounted to $2.58 million relative to a gain of $5.93 million booked in the 2020. Finance cost amounted to $51.66 million, there was no finance cost for the nine months ended July 31, 2020.

Profit before taxation contracted by 35% to close the nine months ended July 31, 2021, at $103.58 million (2020: $158.78 million). For the quarter, profit before taxation amounted to $42.58 million compared to $49.39 million in the previous corresponding quarter. There were no taxation charges, as such net profit closed at $103.58 million (2020: $158.78 million). While for the quarter, net profit totalled $42.58 million (2020: $49.39 million).

Total comprehensive income for the nine months ended July 31, 2021, amounted to $105.98 million (2020: $159.48 million) and closed at $42.58 million (2020: $49.39 million ) for the quarter ended July 31, 2020.

Consequently, earnings per share (EPS) for the nine months amounted to $0.08 (2020: $0.12). While for the quarter, earnings per share closed at $0.032 (2020: $0.037). The trailing twelve months earnings per share amounted to $0.114.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price closed the trading period on September 10, 2021 at $3.43 with a corresponding P/E of 30.18 times.


Balance Sheet at a glance:

As at July 31, 2021, the Company’s total asset base amounted to $1.73 billion (2020: $1.30 billion). The increase was due to ‘Intangible Assets’ which closed at $268.45 million (2020: nil) as well as ‘Property, Plant and Equipment’ which amounted to $648.84 million (2020: $611.66 million).

Equity attributable to stockholders of parent amounted to $746.14 million (2020: $738.87 million) with book value per share amounting to $0.56 (2020: $0.55).


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