INDIES reports 40% increase in nine months net profit

September 11. 2020

Indies Pharma Jamaica Limited (INDIES), for the nine months ended July 31, 2020, reported revenue of $565.83 million, 2% lower than the $575.81 million booked in 2019. For the third quarter, revenue closed at $164.87 million (2019: $214.52 million).

Cost of sales, for the nine months ended July 31, 2020, declined by 11% to close at $168.45 million (2019: $188.80 million). This resulted in gross profit increasing by 3%, amounting to $397.38 million for the nine months relative to $387.01 million reported in the previous corresponding period. For the third quarter ended July 31, 2020, gross profit closed at $119.25 million (2019: $135.82 million).

Other operating income, for the nine months ended July 31, 2020, increased by 309% to close at $1.52 million (2019: $370,574).

Additionally, administrative and other expenses declined by 11% moving from $275.73 million in 2019 to $246.04 million in 2020.  For the quarter, administrative and other expenses closed at $72.65 million (2019: $103.86 million).  The Company noted that, “this was mainly due to the decline in rent, vehicle expenses, IT, security, and lack of one-off expenses such as Interest penalty.”

As such, operating profit, for the nine months ended July 31, 2020, rose by 37% totalling $152.85 million (2019: $111.65 million). For the quarter, operating profit amounted to $47.27 million versus $32.19 million recorded in the prior comparable quarter. Exchange gain for the nine months amounted to $5.93 million relative to a gain of $1.73 million booked in the 2019. There was no finance cost for the nine months ended July 31, 2020 versus $281,994 reported for the corresponding period in 2019.

Profit before taxation increased by 40% to close the nine months ended July 31, 2020 at $158.78 million (2019: $113.09 million). For the quarter, profit before taxation amounted to $50.64 million compared to $33.61 million in the previous corresponding quarter.

Net profit, for the nine months ended July 31, 2020, closed at $158.78 million (2019: $113.09 million). While for the quarter, net profit totalled $50.64 million (2019: $33.62 million).

Total comprehensive income for the nine months ended July 31, 2020 amounted to $159.48 million (2019: $118.24 million) and closed at $50.64 million (2019: $33.62 million ) for the quarter ended July 31, 2020.

Consequently, earnings per share (EPS) for the nine months amounted to $0.12 (2019: $0.09). While for the quarter, earnings per share closed at $0.038 (2019: $0.025). The trailing twelve months earnings per share amounted to $0.133.  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, 2020 at $2.73.

Balance Sheet at a glance:

As at July 31, 2020, the Company’s total asset base amounted to $1.30 billion (2019: $746.39 million). The increase was due to a 708% rise in ‘Property, plant and equipment’ which closed at $698.28 million (2019: $86.42 million).

Equity attributable to stockholders of parent amounted to $738.87 million (2019: $680.31 million) with book value per share amounting to $0.55 (2019: $0.51).



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.