December 15. 2023
Indies Pharma Jamaica Limited (INDIES)
Unaudited financials for the twelve months ended October 31, 2023:
Indies Pharma Jamaica Limited (INDIES) for the twelve months ended October 31, 2023, reported a 13% increase in Revenue totaling $1.06 billion compared to $937.28 million in the corresponding period last year. Revenue for the fourth quarter had a 28% increase to close at $268.56 million compared to $209.65 million for the comparable quarter of 2022.
Cost of Sales amounted to $328.99 million (2022: $281.47 million), this represents an increase of 17% year over year.
Consequently, gross profit improved 11% to $726.46 million compared to $655.82 million for the twelve months ended October 31, 2022. The Company booked gross profit of $172.06 million for the fourth quarter versus $137.59 million reported for the similar quarter of 2022. Indies highlighted, “This is attributable mainly to the enhanced customer loyalty towards the company’s product and service quality. The main contributor to our gross margin is increase in the sales which has provided us a favorable impact on our contribution and profitability.”
Other operating income increase by 413% to close at $19.24 million (2022: $3.84 million), while Administrative and other expenses rose by 23% from $376.86 million in 2022 to $463.16 million in the period under review. As a result, profit from operation for the twelve months ended October 31, 2023, amounted to $282.55 million, a slight increase relative to $282.79 million reported in 2022.
Exchange Gain for the twelve months ended October 31, 2023, amounted to $1.86 million, relative to exchange loss of $1.75 million reported in 2022.
Finance cost amounted to $66.78 million, a 11% increase from the corresponding period last year. (2022: $60.25 million).
Profit before taxation for the twelve months ended October 31, 2023, amounted to $217.63 million, a 1% decrease relative to $220.79 million reported in 2022. Profit before taxation for the fourth quarter amounted to $42.84 million (2022: $32.93 million).
Taxation for the twelve months ended October 31, 2023, amounted to $4.58 million (2022: nil). Management noted, “As of the last quarter of this fiscal year, the five-year zero corporate income tax (CIT) incentive period has come to an end. Going forward the company’s performance will now attract a CIT bracket of 12.5% over the next 5 years.”
As such, net profit for the twelve months amounted to $213.06 million, a 4% decrease from the $220.79 million reported in 2022. For the fourth quarter, Net profit was $34.42 million (2022: $32.93 million).
Consequently, Earnings Per Share for the twelve months amounted to $0.16 (2022: EPS: $0.17), while Earnings Per Share for the quarter totaled $0.03 (2022: EPS: $0.02). The twelve-month trailing EPS was $0.16 and the number of shares used in these calculations was 1,332,536,649.
Notably, INDIES’s stock price closed the trading period on December 14, 2023 at a price of $2.90 with a corresponding P/E ratio of 18.37x.
Balance Sheet Highlights
The company’s assets totalled $2.24 billion (2022: $2.05 billion). The movement in total assets was led by a $103.50 million increase in ‘Receivables’, followed by a $79.49 million increase in ‘Right-of-use-asset’, as well as a $62.44 million increase in ‘Intangibles’. However, ‘Investments’ and ‘Property, plant & equipment’ declined by $63.14 million and $60.53 million respectively, to offset the movement.
Shareholder’s equity was $1.22 billion (2022: $1.16 billion), representing a book value per share of $0.92 (2022: $0.87).
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.