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).

 

 

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.

 

2019-06-04T20:07:14+00:00