INDIES reports a 16% decrease in first quarter net profits

March 16, 2020

Indies Pharma Jamaica Limited reported revenue of $193.72 million, 15% higher than the $168.18 million booked in 2019.

Cost of Sales increased 32% to close at $65.86 million (2019: $49.94 million). Gross profit increased by 8%, amounting to $127.86 million for the period relative to $118.24 million in 2019.

Other operating income for the period rose by 541% to close at $698,370 (2019: $109,005).

Additionally, administrative and other expenses rose by 27%, moving from $72.08 million in 2019 to $91.78 million. According to INDIES, the movement was, “due to costs related to increases in business activity. Significant increases were incurred for rent, lease and set-up costs for the new facility in Freeport, Montego Bay.”

As such, operating profit declined by 21% from $46.27 million recorded in 2019 to $36.78 million for the quarter ended January 31, 2020. There was no finance costs for the quarter ended January 2020 (2019: $77,048), while foreign exchange gain amounted to $2.83 million from a gain of $716,791 in 2019.

Profit before taxation decreased by 16% to close the period at $39.61 million (2019: $46.91 million). INDIES incurred no taxes for the quarter, thus net profit amounted to $39.61 million (2019: $46.91 million). Total Comprehensive Income amounted to $39.61 million for the quarter ended January 31, 2020 relative to $48.61 million in 2019.

Consequently, earnings per share (EPS) for the quarter amounted to $0.03 compared with $0.04 for the corresponding period of last year. The trailing twelve months earnings per share amounted to $0.09.  The numbers of shares used in the calculations are 1,332,536,649 units. Notably, INDIES stock price close the trading period on March 16, 2020 at $2.00.

Balance Sheet at a glance:

Assets totalled $927.29 million as at January 31, 2020 relative to $756 million a year prior. The increase in total assets was largely due to a 184% rise in ‘Property, plant and equipment’ to total $244.92 million (2019: $86.32 million).

Total shareholder’s equity amounted to $734.84 million (2019: $717.28 million) with book value per share amounting to $0.55 (2019: $0.54).

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