INDIES reports 36% increase in six months net profit

June 11, 2020

Indies Pharma Jamaica Limited (INDIES), for the six months ended April 30, 2020, reported revenue of $400.96 million, 11% higher than the $361.30 million booked in 2019. For the second quarter, revenue closed at $207.24 million (2019: $193.12 million).

Cost of sales, for the six months ended April 30, 2020, rose by 12% to close at $122.84 million (2019: $110.11 million). This resulted in gross profit increasing by 11%, amounting to $278.13 million for the six months relative to $251.19 million reported in the previous corresponding period. For the second quarter ended April 30, 2020, gross profit closed at $150.27 million (2019: $132.94 million).

Other operating income, for the six months ended April 30, 2020, increased by 490% to close at $848,999 (2019: $144,017). Additionally, administrative and other expenses rose by 1% moving from $171.88 million in 2019 to $173.39 million in 2020.  For the quarter, administrative and other expenses closed at $81.61 million (2019: $99.79 million). Management noted that the increase was “mainly due to costs related to increase in business activity. Significant increases were incurred for depreciation and lease costs. Also, the adoption of IFRS 16 ‘leases’ which requires the lessee to record a liability for the remaining contractual life of the lease payments.”

As such, operating profit, for the six months ended April 30, 2020, rose by 33% totalling $105.59 million (2019: $79.45 million). For the quarter, operating profit amounted to $68.81 million versus $33.19 million recorded in the prior comparable quarter. Exchange gain for the six months amounted to $2.56 million relative to a gain of $218,992 booked in the 2019. There was no finance cost for the six months ended April 30, 2020 versus $196,728 reported for the corresponding period in 2019.

Profit before taxation increased by 36% to close the six months ended April 30, 2020 at $108.14 million (2019: $79.48 million). For the quarter, profit before taxation amounted to $68.53 million compared to $32.57 million in the previous corresponding quarter.

Net profit, for the six months ended April 30, 2020, closed at $108.14 million (2019: $79.48 million). While for the quarter, net profit totalled $68.53 million (2019: $32.57 million).

Total comprehensive income for the six months ended April 30, 2020 amounted to $108.84 million (2019: $84.63 million) and closed at $69.23 million (2019: $36.02 million ) for the quarter ended April 30, 2020.

Consequently, earnings per share (EPS) for the six months amounted to $0.081 (2019: $0.060). While for the quarter, earnings per share closed at $0.051 (2019: $0.024). The trailing twelve months earnings per share amounted to $0.12.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price closed the trading period on June 10, 2020 at $2.30.

Management stated that, “current liabilities increased by 562% (J$467.26 million), predominantly due to the short-term loan borrowed to purchase land which will be used for the construction of Indies Pharma Ja Ltd Corporate Office and warehousing.” INDIES also stated that, “the company currently incurred a debt of $398.75 million, which represent land cost for corporate head office and warehousing.”

Balance Sheet at a glance:

As at April 30, 2020, the Company’s total asset base amounted to $1.44 billion (2019: $721.35 million). The increase was due to a 711% rise in ‘Property, plant and equipment’ which closed at $703.94 million (2019: $86.85 million). ‘Receivables’ and ‘Cash and Cash Equivalents’ also contributed to the growth closing at $366.73 million (2019: $167.18 million) and $153.33 million (2019: $80.43 million).

Equity attributable to stockholders of parent amounted to $874.79 million (2019: $646.70 million) with book value per share amounting to $0.66 (2019: $0.49).

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