INDIES reports 52% increase in year end net profits

December 16, 2020

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. It was noted, “the Company would have seen a significant growth in its revenues if it were not for the pandemic.” Revenues for the fourth quarter increased 33% to $200.12 million (2019: $150.09 million).

Cost of sales amounted to a total of $240.17 million relative to the $268.78 million reported last year, an 11% decrease year over year.

As such, gross profit increased 14% to a total of $525.78 million relative to the $460.67 million for the FY2019. Gross profit for the quarter closed at $128.40 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 5% to close the year at $319.68 million (2019: $338.12 million). The company stated that, “the reason for this is the revaluation of company’s asset and an increase in retained earnings for the period.”

This led to an increase in the company’s profit from operations from $123.33 million in 2019 to $207.97 million of this year. Profit from operations for the quarter closed at $55.12 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- loan interest’ rose to $13.83 million (2019: $196,728).

INDIES reported a profit before tax of $198.44 million relative to the $127.84 million reported in 2019. For the quarter, profit before tax amounted to $39.66 million (2019: $22.05 million).

Consequently, net profit for the year increased 52% to $198.44 million relative to a net profit $130.96 million in 2019, there was no tax charge for 2020, compared to a taxation credit of $3.12 million booked in 2019. For the fourth quarter, net profit was $39.66 million (2019: $22.05 million).

Total comprehensive income totalled $199.14 million relative to $140.29 million in 2019, a 42% increase.

Earnings per share (EPS) for the period amounted $0.15 compared to an 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 December 15, 2020 at $2.48 with a corresponding P/E ratio of 16.65 times.

Balance Sheet at a glance:

As at October 31, 2020, total assets amounted to $1.70 billion, $933.24 million more than $770.91 million the year prior. This was because of an increase in ‘Property, plant and equipment’ which closed $690.96 million (2019: $137.13 million) as well as an increase in ‘Cash and cash equivalents’ to $443.72 million (2019: $114.78 million).

Shareholders’ Equity totalled $778.53 million (2019: $695.23 million) resulting in a book value per share of $0.58 (2019: $0.52).


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