JAMT reports year end net profit of $162.58 million

February 1, 2023

Jamaican Teas Limited (JAMT) reported a 9% increase in revenues to total $2.47 billion (2021: $2.27 billion). For the quarter, revenues amounted to $649.76 million (2021: $520.36 million).

Cost of sales increased by 12% to $1.93 billion (2021: $1.72 billion). Hence, gross profit fell 2% to $543.00 million (2021: $553.30 million). For the quarter, gross profit closed at $109.55 million relative to $102.18 million reported in the previous year’s corresponding quarter.

Other income was reported at $71.94 million versus other income of $163.48 million in the prior year.

Administrative expenses increased by 41% to $346.86 million for the year ended September 30, 2022, relative to $245.41 million for 2021. Sales and Marketing costs increased by 3% totalling $38 million (2021: $36.82 million). For the quarter administrative expenses and sales & marketing costs closed at $106.94 million (2021: $57.91 million) and $11.82 million (2021: $9.71 million) respectively.

Operating profit closed at $246.90 million compared to $778.75 million documented twelve months earlier. For the quarter, operating loss totalled $17.84 million with a profit of $241.19 million in 2021.

Finance cost for the year amounted to $50.26 million relative to $37.71 million reported in 2021. While finance costs for the quarter closed $16.56 million (2021: $11.79 million).

Pre-tax profit amounted to $196.64 million relative to the pre-tax profit of $741.05 million booked the previous year. For the quarter, pre-tax loss amounted to $34.39 million (2021: pre-tax profit of $229.40 million).

Tax charge for the year amounted to $34.06 million in contrast to the $154.86 million in 2021. Net profit for the year totalled $162.58 million relative to net profit of $586.18 million recorded twelve months earlier. Loss for the fourth quarter closed at $30.59 million (2021: net profit of $235.18 million).

For the year end, net profit attributable to shareholders declined to $193.95 million (2021: $392.94 million) a 51% decline relative to the prior comparable financial year.

For the year ended September 30, 2021, earnings per share totalled $0.09 compared to $0.18. While for the quarter, the EPS was $0.004 (2021: $0.04). The numbers of shares used in the calculations are 2,159,880,337 units. JAMT last traded on February 01, 2023, at $2.51 with a corresponding P/E ratio of 27.95 times.

Balance Sheet Highlights:

As of September 30, 2022, the Company’s total assets amounted to $4.94 billion, a 21% increase when compared to the $4.08 billion reported as at September 2021. This increase was attributable to a 79% growth in ‘Inventories’ from $666.03 million in 2021 to $1.91 billion for the period under review.

Shareholders’ Equity totalled $2.66 billion as at September 30, 2022 (2021: $2.08 billion), resulting in a book value per share of $1.23 (2021: $0.96).


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