August 12, 2021
Jamaican Teas Limited (JAMT), for the nine months ended June 30, 2021, reported a 24% increase in revenues to total $1.75 billion (2020: $1.41 billion). For the quarter, revenues amounted to $530.71 million compared to $505.96 million in the previous corresponding quarter. Notably, Management stated, “Our third quarter results reflect a good performance but with some moderation of the strong trends seen in the previous quarters. Since the end of the quarter the group continues to record strong sales on both the export and local market and increased gains in your investment company.”
Cost of sales rose 28% to $1.30 billion (2020: $1.02 billion), in which gross profit rose 14% to close at $451.12 million (2020: $394.61 million). Gross profit for the quarter closed at $139.62 million (2020: $139.38 million).
Investment income closed the period at $441.55 million compared to losses which closed the prior corresponding period at $481.18 million. Investment income for the quarter closed at $208.63 million compared to $132.14 million documented for the same quarter last year.
Administrative expenses rose by 13% to $187.51 million for the nine months ended June 2021 relative to $166.38 million for the same period of 2020. JAMT’s sales and marketing costs fell by 35% to date, totalling $27.12 million (2020: $41.82 million).
Finance cost for the period under review amounted to $25.92 million (2020: $23.97 million), while for the quarter finance costs closed at $9.24 million versus $5.15 million in the prior corresponding quarter.
Pre-tax profit amounted to $661.71 million in 2020 compared to pre-tax loss of $312.77 million booked in the previous year. While, for the quarter, pre-tax profits closed at $278.85 million (2020: $205.08 million).
There was a taxation charge for the period which closed at $160.64 million relative to a taxation credit of $49.60 million in 2020. Net profit for the period amounted to $501.06 million in the period under review relative to a loss of $263.18 million recorded twelve months earlier. For the quarter, net profit closed at $210.01 million (2020: $193.14 million).
Net profit attributable to shareholders amounted to $313.01 million (2020: $84.93 million) for the nine months ended June 2021. Whereas for the quarter, net profit attributable to shareholders amounted to $115.45 million (2020: $107.54 million).
Consequently, earnings per share totaled $0.15 compared to $0.04 for the period ended June 2020. For the quarter, EPS closed at $0.05 (2020: $0.05). The twelve months trailing earnings per share amounted to $0.21. The numbers of shares used in the calculations are 2,146,150,377units. JAMT last traded on August 11, 2021 at $3.97 with a corresponding P/E ratio of 18.75 times.
JAMT highlighted that, “We face the future cautiously with our expectation that we will be able to continue our operations without any major interruptions. We have also faced increased difficulty in receiving raw materials on a timely basis as well as experienced some increases in raw material and shipping costs.”
Balance Sheet Highlights:
As at June 30, 2021, the Company total assets amounted to $4.09 billion, an increase of 25% when compared to the $3.27 billion reported as at June 2020. This increase was driven primarily by an upward trajectory in ‘Investment’ and ‘Inventories’ which closed the period at $2.12 billion (2020: $1.40 billion) and $389.74 million (2020: $284.05 million), respectively.
Shareholders’ Equity totalled $1.97 billion as at June 30, 2021 (2020: $1.66 billion), resulting in a book value per share of $0.92 (2020: $0.78).
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