July 31, 2023
Jamaica Teas Limited (JAMT) for the nine months ended June 30, 2023 reported a 12% increase in Operating Revenues totaling $2.05 billion compared to $1.82 billion in the corresponding period last year. Operating Revenues for the third quarter had a 10% increase to close at $715.20 million compared to $648.57 million for the comparable quarter of 2022.
Cost of sales amounted to $1.59 billion (2022: $1.39 billion), this represents an increase of 15% year over year. Consequently, gross profit increased by 6% to $458.96 million compared to $433.45 million for the nine months ended June 30, 2022. The company booked gross profit of $162.63 million for the third quarter versus $156.75 million reported for the similar quarter of 2022.
Total investment income year to date closed at $123.29 million relative to $90.95 million recorded in 2022. For the quarter, Investment income amounted to $181.75 million versus a loss of $132.95 million for the third quarter of 2022.
Other income decreased by 62% to close at $2.42 million (2022: $6.40 million), while Sales & Marketing Cost increase by 51% from $26.14 million in 2022 to $39.52 million in the period under review. Administrative expenses for the nine months ended June 30, 2023 amounted to $270.50 million, a 13% increase relative to $239.92 million reported in 2022.
Finance costs for the nine months ended June 30, 2023, amounted to $46.28 million, a 37% increase relative to $33.70 million reported in 2022. Finance cost for the third quarter amounted to 15.87 million (2022: $13.86 million). Profit Before taxation totalled $228.36 million a 1% decrease from the corresponding period last year. (2022: $231.04 million).
Taxation for the nine months ended June 30, 2023, amounted to $713,034, a 98% decrease relative to $37.86 million reported in 2022. Taxation for the third quarter amounted to 35.32 million (2022: Credit of $23.85 million).
Net Profit for the nine months ended June 30, 2023 had a 18% increase to reach $227.65 million (2022: $193.18 million). Net profit to shareholders for the nine months amounted to $191.81 million, a 3% increase from the $186.32 million reported in 2022. For the third quarter, Net profit to shareholders was $105.61 million (2022: $24.26 million).
Consequently, Earnings Per Share for the nine months amounted to $0.09 (2022: EPS: $0.09), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS: $0.01). The twelve-month trailing EPS was $0.09 and the number of shares used in these calculations was 2,164,680,377.
Notably, JAMT’s stock price closed the trading period on July 28, 2023 at a price of $2.13 with a corresponding P/E ratio of 23.07x.
Balance Sheet Highlights
The company’s assets totalled $5.08 billion (2022: $4.59 billion). The main contributor of this increase was ‘Property, Plant and Equipment’ which gained $443.75 million to reach $859.85 million (2022: $402.73 million).
Shareholder’s equity was $2.86 billion (2022: $2.38 billion), representing a book value per share of $1.32 (2022: $1.10).
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