February 12, 2020
Indies Pharma Jamaica Limited (INDIES) based on audited results, reported revenues for the twelve months ended October 31, 2019 of $729.45 million, an increase of 15% when compared with the $636.17 million booked last year.
Cost of sales amounted to a total of $268.78 million relative to the $243.38 million reported for the same period last year, a 10% increase year over year.
As such, gross profit increased 17% to a total of $460.67 million relative to the $392.79 million for the FY2018.
Other operating income for the year ended amounted to $782,450 a decline of 4% from last year’s $813,221.
Administrative expenses jumped up by 41% to close the year at $338.12 million (2018: $239.87 million). The company also noted that, “goods valuing approximately 46 million expired during the twelve-month period ending October 2019.”
This led to a dip in the company’s profit from operations which moved from $153.74 million in 2018 to $123.33 million of this year.
Notably, INDIES reported $4.71 million in foreign exchange gains for FY2019 compared to foreign exchange losses of $4.48 million for 2018. ‘Finance cost- loan interest’ fell to $196,728 compared to $11.21 million reported in 2018.
INDIES reported a profit before tax of $127.84 million relative to the $138.05 million reported in 2018.
Consequently, net profit for the year increased 9% to $130.96 million relative to a net profit $119.70 million in 2018, as there was a tax benefit of $3.12 million for 2019, compared to a tax charge of $18.34 million in 2018.
Total comprehensive income totalled $136.11 million relative to $119.70 million in 2018, a 14% increase.
Earnings per share (EPS) for the period amounted $0.10 compared to and (EPS) of $0.09 recorded in 2018. The number of shares used in the calculations was 1,332,536,649. The stock last traded on February 12, 2020 at $2.58.
Balance Sheet at a glance:
As at October 31, 2019, total assets amounted to $770.91 million, 9% less than $851.26 million the year prior. This was as a result of a decline in ‘Related companies’ which closed $9.98 million (2018: $198.61 million). This decline was tempered by the increase in ‘Receivables’ which closed at $292.98 million (2018: $266.41 million), as well as a growth in ‘Property, plant and equipment’ to $137.13 million (2018: $92.42 million).
Shareholders’ Equity totalled $695.23 million (2018: $668.64 million) resulting in a book value per share of $0.52 (2018: $0.50).
Management noted that, “the company remains debt free, which indicates its good financial health and shows that it is in a good position for future growth.”
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.