INDIES reports 37% decline in six months net profit

June 15, 2021

Indies Pharma Jamaica Limited (INDIES), for the six months ended April 30, 2021, reported revenue of $424.25 million, 6% higher than the $400.96 million booked in 2020. For the second quarter, revenue closed at $200.72 million (2020: $207.24 million).

Cost of sales, for the six months ended April 30, 2021, rose by 35% to close at $166.38 million (2020: $122.84 million). This resulted in gross profit decreasing by 7%, amounting to $257.87 million for the six months relative to $278.13 million reported in the previous corresponding period. Indies noted, “this is due to the fact that during the height of the pandemic, global and local safety measures led to some logistics challenges and unavoidable costs. These costs are firstly, increased sea and air freight charges which were further compounded by the urgent need to acquire, by air freight, some out-of-stock items.” For the second quarter ended April 30, 2021, gross profit closed at $119.76 million (2020: $150.27 million).

Furthermore, “the company was also impacted by the cessation of in-store and outdoor marketing activities as well as lower consumer disposable income that led to a one-off writing-off of expired goods which had been launched pre-pandemic. These were primarily non-prescription Over- The- Counter (OTCs) herbal supplements.” according to indies.


Other operating income, for the six months ended April 30, 2021, decreased by 58% to close at $355,186 (2020: $848,999). Additionally, administrative and other expenses decline by 7% closing at $160.41 million in 2021 from $173.39 million booked twelve months earlier.  For the quarter, administrative and other expenses closed at $85.52 million (2020: $81.61 million).

As such, operating profit, for the six months ended April 30, 2021, decline by 7% totalling $97.82 million (2020: $105.59 million). For the quarter, operating profit amounted to $34.38 million versus $68.81 million recorded in the prior comparable quarter. Exchange gain for the six months amounted to $1.19 million relative to a gain of $2.56 million booked in the 2020. Finance cost for the six months ended April 30, 2021 amounted to $31 million (2020: nil).

Profit before taxation decreased by 37% to close the six months ended April 30, 2021 at $68.01 million (2020: $108.14 million). For the quarter, profit before taxation amounted to $20.49 million compared to $68.53 million in the previous corresponding quarter.

INDIES highlighted, “In addition to the afore mentioned comments, net profits for 2021 was also impacted by higher finance cost associated with the bond issued in the second half of 2020.”

Net profit, for the six months ended April 30, 2021, closed at $68.01 million (2020: $108.14 million). While for the quarter, net profit totalled $20.49 million (2020: $68.53 million).

Total comprehensive income for the six months ended April 30, 2021 amounted to $69.33 million (2020: $108.84 million) and closed at $21.81 million (2020: $69.23 million) for the quarter ended April 30, 2021.

Consequently, earnings per share (EPS) for the six months amounted to $0.051 (2020: $0.081). While for the quarter, earnings per share closed at $0.015 (2020: $0.051). The trailing twelve months earnings per share amounted to $0.13.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price closed the trading period on June 15, 2021 at $3.66 with a corresponding P/E of 29.29 times.

Balance Sheet at a glance:

As at April 30, 2021, the Company’s total asset base amounted to $1.67 billion (2020: $1.44 billion). The increase is mainly due to ‘Investment’ which closed at $302.24 million (2020: nil) and ‘Property, Plant and Equipment’ also contributed to the growth closing at $650.23 million (2020: $607.92 million). However, the movement was affected by a decline in ‘Receivables’ to $218.13 million (2020: $366.73 million).

Equity attributable to stockholders of parent amounted to $709.49 million (2020: $874.79 million) with book value per share amounting to $0.53 (2020: $0.66).


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