INDIES reports 58% increase in year end net profits

Updated January 29, 2021 

Indies Pharma Jamaica Limited (INDIES), reported revenues for the twelve months ended October 31, 2020 of $765.95 million, an increase of 5% when compared with the $729.45 million booked last year. Revenues for the fourth quarter increased 33% to $200.12 million (2019: $150.09 million).

Cost of sales amounted to a total of $239.26 million relative to the $268.78 million reported for the same period last year, an 11% decrease year over year.

As such, gross profit increased 14% to a total of $526.69 million relative to the $460.67 million for the FY2019. Gross profit for the quarter closed at $129.31 million (2019: $115.21 million).

Other operating income for the year ended amounted to $1.86 million a rise of 138% from last year’s $782,450. Administrative expenses reduced by 7% to close the period at $315 million (2019: $338.12 million).

This led to an increase in the company’s profit from operations from $123.33 million in 2019 to $213.56 million for the period under review. Profit from operations for the quarter closed at $56.03 million relative to $19.16 million recorded for the same quarter of 2019.

Notably, INDIES reported $4.30 million in foreign exchange gains for FY2020 (2019: $4.71 million), while finance cost rose to $9.19 million (2019: $196,728).

INDIES reported a profit before tax of $208.68 million relative to the $127.84 million reported in 2019. For the quarter, profit before tax amounted to $40.57 million (2019: $22.05 million).

Consequently, net profit for the year increased 58% to $206.65 million relative to a net profit $130.96 million in 2019, after a tax charge of $2.03 million for 2020, compared to a tax credit of $3.12 million in 2019. For the fourth quarter, net profit was $40.57 million (2019: $22.05 million).

Total comprehensive income totalled $278.06 million relative to $136.11 million in 2019, a 104% increase.

Earnings per share (EPS) for the period amounted $0.16 compared to and (EPS) of $0.10 recorded in 2019. For the quarter, EPS totalled $0.03 (2019: $0.02). The number of shares used in the calculations is 1,332,536,649. The stock last traded on January 28, 2020 at $2.60 with a corresponding P/E ratio of 16.77 times.

Balance Sheet at a glance:

As at October 31, 2020, total assets amounted to $1.78 billion, $1.01 billion more than $770.91 million the year prior. This was as a result of an increase in ‘Property, plant and equipment’ which closed $627.78 million (2019: $137.13 million) and other line items except for “Receivables”, “Inventories” and “Taxation Recoverable” by $71.38 million, $10.42 million and $1.91 million, respectively.

Shareholders’ Equity totalled $786.74 million (2019: $695.23 million) resulting in a book value per share of $0.58 (2019: $0.52).


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