INDIES reports 55% increase in six months net profit

Date: June 04, 2019

Indies Pharma Jamaica Limited, for the six months ended April 2019, reported revenue of $361.30 million, 20% higher than the $301.10 million booked in 2018. For the quarter, revenue closed at $193.12 million (2018: $149.90 million).

Cost of sales declined by 3% to close at $110.11 million (2018: $113.80 million). This resulted in gross profit increasing by 34%, amounting to $251.19 million for the period relative to $187.30 million reported in the previous corresponding period. For the quarter, gross profit closed at $132.94 million (2018: $95.34 million).

Other operating income for the period declined by 74% to close at $144,017 (2018: $558,541). Additionally, administrative and other expenses rose by 53% moving from $112.55 million in 2018 to $171.88 million in 2019.  For the quarter, administrative and other expenses closed at $99.79 million (2018: $54.69 million). Management noted that, “the increase was mainly due to costs related to increases in business activity. Significant increases were incurred for fuel expenses that went up by 80% or $1.31M when compared to the corresponding period in the previous year. The company also incurred rent, lease and maintenance expenses of $4.21M for its new office facility in Freeport, Montego Bay.”

As such, operating profit rose by 6% totaling $79.45 million (2018: $75.30 million). For the quarter, operating profit amounted to $33.19 million versus $40.78 million recorded in the prior comparable quarter. Exchange gain for the six months amounted to $218,992 relative to a loss of $1.45 million booked in the 2018. Finance cost incurred for the first six months totaled $196,728 versus $7.50 million reported for the corresponding period in 2018.

Profit before taxation increased by 20% to close the period at $79.48 million (2018: $66.36 million). For the quarter, profit before taxation amounted to $32.57 million compared to $37.77 million in the previous corresponding quarter.

Net profit for the period closed at $79.48 million (2018: $51.12 million). While for the quarter, net profit totaled $32.57 million (2018: $27.65 million).

Consequently, earnings per share (EPS) for the period amounted to $0.060 (2018: $0.038). While for the quarter, earnings per share closed at $0.024 (2018: $0.021). The trailing twelve months earnings per share amounted to $0.11.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price close the trading period on June 03, 2019 at $3.13.

Balance Sheet at a glance:-

As at April 2019, the Company’s total assets base amounted to $721.35 million (2018: $624.88 million). The increase was largely due to a rise in ‘Inventories’ and ‘Related Companies’ which closed at $199.30 million (2018: $138.63 million) and $135.59 million (2018: $41.06 million), respectively.

Equity attributable to stockholders of parent amounted to $646.70 million (2018: $370.48 million) with book value per share amounting to $0.49 (2018: $0.28).



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