INDIES reports 9% increase in year end net profits

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.”

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