JAMT reports 44% decrease in year end net profit attributable to shareholders

December 30, 2020

Jamaican Teas Ltd (JAMT)

Audited Financial Statements for the Year Ended September 30, 2020:

Jamaican Teas Limited (JAMT) reported a 70% increase in revenues to total $2.20 billion (2019: $1.29 billion). For the quarter, revenues amounted to $782.88 million (2019: $282.07 million). JAMT highlighted that, “The manufacturing segment of the group saw improved performance as a result of the pandemic as it strategized and capitalised n demand that existed in the export market. The retail and real estate business segment saw minimal impact; however, its investment business segment was significantly impacted as assets prices across the world responded to the economic disruption.”

Cost of sales increased by 68% to $1.61 billion (2019: $958.09 million). Likewise, gross profit rose 76% to $584.89 million (2019: $333.10 million). For the quarter, gross profit closed at $192.80 million relative to $54.15 million reported in the previous year’s corresponding quarter.

Other income was reported at $78.54 million versus other income of $174.70 million in the prior year.

Administrative expenses increased by 6% to $228.16 million for the year ended September 2020 relative to $214.50 million for 2019. Sales and Marketing costs went up by 1% totaling $51.73 million (2019: $50.97 million). For the quarter administrative expenses and sales & marketing costs closed at $64.31 million (2019: $73.57 million) and $9.91 million (2019: $10.90 million) respectively. The Company noted, “lower administration expenses for the quarter were largely due to reduced expenses at QWI.”

Operating loss closed at $103.69 million compared to operating profit of $616.66 million documented twelve months earlier. For the quarter, operating profit totalled $185.13 million (2019: $311.78 million).

Finance cost for the year amounted to $31.75 million relative to $28.18 million reported in 2019. While, finance costs for the quarter closed $7.78 million (2019: $12.35 million).

Pre-tax loss amounted to $135.44 million relative to the pre-tax profit of $589.73 million booked the previous year. For the quarter, pre-tax profit amounted to $177.34 million (2019: $300.31 million).

Tax credit for the year amounted to $65.72 million in contrast to an outflow of $106.61 million in 2019. Net loss for the year totaled to $69.72 million relative to net profit of $483.12 million recorded twelve months earlier. Profit for the fourth quarter closed at $193.46 million (2019: $215.36 million).

For the year end, net profit attributable to shareholders fell to $222.40 million (2019: $395.76 million). While for the quarter, net profit attributable to shareholders amounted to $137.47 million, a 22% decline relative to $176.91 million in the prior comparable quarter. Total comprehensive loss closed the year at $69.72 million relative to income of $483.12 million in 2019.

Consequently, earnings per share totaled $0.10 compared to $0.19 for the year ended September 30, 2020, while for the quarter, the EPS was $0.07 (2019: $0.08). The numbers of shares used in the calculations are 2,118,250,377 units. JAMT last traded on December 29, 2020 at $1.91 with a corresponding P/E ratio of 18.17 times.

Balance Sheet Highlights:

As at September 2020, the Company’s total assets amounted to $3.52 billion, a 12% decline when compared to the $3.99 billion reported as at September 2019. This declined was tempered by a 120% growth in ‘Cash and Bank’ from $146.32 million in 2019 to $ 321.70 million for the period under review. Also, by ‘Inventories’ and ‘Investment’ which closed at $474.36 million (2019: $344.03 million) and $1.60 billion (2019: $1.36 billion), respectively.

Shareholders’ Equity totalled $1.72 billion as at September 30, 2020 (2019: $1.55 billion), resulting in a book value per share of $0.81 (2019: $0.73).


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