April 24, 2024
Jamaica Teas Limited (JAMT) for the six months ended March 31, 2024, reported a 23% increase in operating revenues totalling $1.64 billion compared to $1.33 billion in the corresponding period last year. Operating revenues for the second quarter had a 20% increase to close at $800.19 million compared to $665.51 million for the comparable quarter of 2023.
Cost of sales amounted to $1.32 billion (2023: $1.03 billion), this represents an increase of 28% year over year. Consequently, gross profit increased by 7% to $318.13 million compared to $296.33 million for the six months ended March 31, 2023. The company booked gross profit of $161.84 million for the second quarter versus $146.76 million reported for the similar quarter of 2023.
Other income increased by 56% to close at $1.99 million (2023: $1.28 million). Sales & marketing costs increased by 12% from $25.16 million in 2023 to $28.21 million in 2024, while administrative expenses for the six months ended March 31, 2024, amounted to $203.83 million, a 20% increase relative to $170.10 million reported in 2023.
Finance costs for the six months ended March 31, 2024, amounted to $37.15 million, a 22% increase relative to $30.41 million reported in 2023. Finance costs for the second quarter amounted to $18.72 million (2023: $16.10 million). Profit before taxation surged to reach $138.85 million in 2024 relative to the $13.46 million reported for the corresponding period last year.
Tax charges for the six months ended March 31, 2024, amounted to $57.74 million relative to tax credit of $34.61 million reported in 2023. Tax charges for the second quarter amounted to $41.90 million (2023: tax credit of $20.26 million).
Net profit for the six months ended March 31, 2024, had a 69% increase to reach $81.11 million (2023: $48.07 million). Profit attributable to shareholders for the six months amounted to $21.67 million, a 75% decrease from the $86.20 million reported in 2023. For the second quarter, loss attributable to shareholders was $18.99 million (2023: profit of $58.63 million).
Earnings per share (EPS) for the six months amounted to $0.01 (2023: $0.04), while loss per share (LPS) for the quarter totalled $0.01 (2023: EPS of $0.03). The twelve-month trailing EPS was $0.08, and the number of shares used in these calculations was 2,164,680,377.
Notably, JAMT’s stock price closed the trading period on April 24, 2024, at a price of $2.48 with a corresponding P/E ratio of 32.93x.
Balance Sheet Highlights:
The company’s assets totalled $5.51 billion (2023: $4.86 billion); a 13% rise year over year due largely to a 374% uptick in cash and short-term investments.
Shareholder’s equity was $3.10 billion (2023: $2.75 billion), representing a book value per share of $1.43 (2023: $1.27).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
