Jamaica Teas (JAMT) reports a 15% increase in Net Profits for 1st Quarter ended December 2016.

Jamaica Teas (JAMT)
For the 3 months ended December 2016:

· Jamaica Teas reported revenue for the first quarter ended December 2016 of $373.9 million, an increase of 9% compared to the $344.6 million booked for the corresponding period in 2015. According to the company, “The improvement in revenues is due to increase in completion of sales of our residential units, 11% increase in sale for our products in the local market and moderate growth in our supermarket by 4%, negatively impacted by a temporary slippage in sales to the overseas markets. Sales at the manufacturing operation were helped by the introduction of new products during 2016.” Other Income increased by 26% for the quarter moving from $13.36 million in 2015 to $16.89 million in 2016.

· Cost of sales increased 8% to $287.8 million (2016: $267.17 million).  As a result, Gross Profit grew 11% to $86.09 million.

· With regard to its real estate portfolio, during the year, the company completed sales of 8 residential units. “This brings the total number of units sold and delivered in the Orchid Estate project to 29.” The company currently have another 18 units in the scheme completed and under sales contracts. JAMT expect “construction of the remaining 25 units will be completed within the next 6 months.”

· Administrative Expenses increased by 26% to $32.17 million for the first quarter ended December 2016 relative to $25.49 million for the same period of 2015. Sales and Marketing cost increased by 5% for the quarter relative to 2015 closing at $8.23 million. There was a 14% reduction in finance cost moving from $10.65 million in 1st Quarter 2015 to $9.13 million in 2016. Total expenses finished with an overall 13% increase, JAMT noted that it was mostly due to an increase in staff costs.

· Pre-tax profits climbed by 14% for the 3 months ended December 2016, compared to same period for the 2015, increasing from $46.84 million to $53.47 million. JAMT incurred tax expenses of $6.27 million compared to $5.95 million during the 2015 comparable period. Although there was an increase in taxes Net Profit increased by 15% to close the quarter with $47.16 million.

· Consequently earnings per share increased to $0.14 compared to $0.12 in the 1st Quarter 2015 period.

Balance Sheet at a glance:

· As at December 2016, the company’s assets totalled $1.33 billion , an increase of 6%  compared to the $1.26 billion reported as at December 2015. The growth was driven primarily by increases in Investments.

· Shareholders’ equity amounted to $934.17 million as at December 31, 2016 (2015: $794.38 million) resulting in a book value per share of $2.77 (2015: $2.35).