JAMT reports 66% increase in nine months net profit

Jamaica Teas Limited (JAMT) for the 9 months ended June 2017 reported a 26% increase in Revenue to total $1.18 billion (2016: $938.63 million). Revenue for the quarter saw a 35% increase to total 421.01 million relative to 312.72 million 2016. According to the company, “Revenues at our supermarket division amounted to $106 million for the June Quarter and $308 million year to date and now exclusively reflects the results of our unit in Kingston following the sale of our Savanna La Mar store in 2016; sales at Chancery street increased from last year by 5% year to date and 10% for the quarter.”

Cost of sales increased  29% to $928.70 million (2016: $719.60 million).  As a result, Gross Profit grew 15% to $252.31 million, while for the quarter JAMT posted a 22% improvement to $82.20 million (2016: $67.32 million).

Notably, Other income reported a 3% growth year over year to $47.97 million relative to $46.72 million a year earlier. According to the company “Physical completion of the remaining homes in this project is anticipated for the fourth quarter of which all but two homes are under sales contracts. During the quarter the company experienced hold up in the completing the sale of homes due to delays in the update of the new property tax rates applicable to this development.”

Administrative Expenses increased by 20% to $100.03 million for the nine months ended June 2017 relative to $83.53 million for the same period of 2016. Sales and Marketing cost declined by 1% for the period relative to 2016 closing at $28.42 million (2016: $28.78 million). There was a 26% reduction in finance cost moving from $30.65 million for the same period last year to $22.63 million in 2017.

The company also reported a gain from recognition as a subsidiary of $30.63 million. Loss from share of associated company of $9.48 million was booked in 2016, none was recorded YTD. As a result, Pre-tax profits climbed by 59% for the 9 month period from the prior year, increasing from $112.95 million in 2016 to $179.84 million. JAMT incurred tax expenses of $20.37 million compared to $9.84 million during the 2016 comparable period.

Despite the increase in taxes, for the nine months Net Profit after discontinued operation increased by 66% to close the period at $148.96 million (2016: $89.96 million). This follows Non-operating Expenses for the period of $8.60 million (2016: Nil) and Loss from Discontinued Operations of $1.9 million (2016: $7.21 million). For the quarter the company saw a 139% increase in Net Profit from Discontinued Operations to $63.62 million.

The company reported unrealized gain of $33.46 million a 34% increase over the $24.98 million in 2016. This resulted in a 59% increase in total comprehensive income reported of $182.43 million relative to $114.93 million.

Consequently earnings per share increased to $0.22 compared to $0.13 in the six months ended June 30, 2017, while for the third quarter JAMT book an EPS of $0.09 (2016: $0.04). The trailing twelve-month eps was $0.26.

“For the balance of the financial year and the oncoming 2018 fiscal year we expect to build on gains achieved this year aided by new products and commencement of construction of an apartment complex in Kingston scheduled for completion late 2018. KIW International is expected to transition from a real estate owner to an investment company to take advantage of investment opportunities locally and overseas”.

 

Balance Sheet at a glance:

As at June 2017, the company’s assets totalled $1.55 billion, an increase of 23% compared to the $1.26 billion reported as at June 2016. The growth was driven primarily by a 96% increase in Investments from $133.54 million in 2016 to $261.36 million for the period reported. Receivables totalled $249.18 million relative to $184.63 million for the 2016 year a 35% increase . According to the company this shows the strength in the company’s increased export sales.

Shareholders’ equity amounted to $1.05 billion as at June 30, 2017 (2016: $840.21 million) resulting in a book value per share of $1.54 (2016: $1.23).

 

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2017-08-18T20:03:40+00:00