JAMT reports first quarter net profit attributable to shareholders of $27.57 million

February 10, 2023

Jamaican Teas Limited (JAMT) reported a 12% increase in revenues to total $665.64 million (2021: $596.10 million). According to management the decrease was “The losses shown in Investment Income mainly reflect the realized and unrealized investment losses of QWI, partially offset by higher dividend income compared with the year ago period.”.

Cost of sales increased by 15% to $516.07 million (2021: $449.54 million) for the first quarter ended December 31, 2022. Consequently, gross profit went up 2% to close at $149.57 million relative to $146.56 million booked for last year’s corresponding quarter. Management stated that “The increases in Cost of Sales for the quarter exceeded the growth in revenues, partly as a result of sharp increases in ocean marine freight rates in 2022 compared with prior periods. This affected raw materials purchased earlier in 2022 which are still being consumed.”

Other income for the period decreased by 98% to $657,162 versus $2.88 million recorded the prior year’s corresponding period.

Sales and marketing cost increased by 61% to $15.80 million for the quarter ended December 2022 relative to $9.81 million for the same quarter for 2021. Administrative expenses went down by 11%, totalling $79.39 million (2021: $88.73 million).

Finance cost for the quarter under review amounted to $14.31 million (2021: $8.05 million),

Consequently, pretax loss totalled $28.62 million for the quarter compared to $207.16 million profit in 2021.

JAMT documented a net loss of $14.27 million for the first quarter, relative to net profit of $167.62 million recorded twelve months earlier. Net profit attributable to shareholders for the quarter under review totalled $27.57 million compared to $113.63 million in 2021.

Consequently, earnings per share (EPS) totalled $0.01 compared to $0.05 for the quarter ended December 31, 2021. The twelve months earnings per share amounted to $0.05. The numbers of shares used in the calculations are 2,159,880,377 units. JAMT last traded on February 9, 2022 at $2.50 with a corresponding P/E of 50.05 times.

Balance Sheet Highlights:

As at December 31, 2022, the Company total assets amounted to $4.82 billion, an increase of 10% when compared to the $4.40 billion reported as at December 2021. Large contributors of this increase were ‘Lease right of use’ and ‘Property, Plant & Equipment’ which totaled $13.20 million (2021: $913,837), and $827.84 million (2021: $384.09 million) respectively.

Shareholders’ Equity totalled $2.71 billion as at December 31, 2022 (2021: $2.20 billion), resulting in a book value per share of $1.25 (2021: $1.02).



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