August 12, 2021
Jamaican Teas Limited (JAMT) reported a 4% increase in revenues to total $2.27 billion (2020: $2.20 billion). For the quarter, revenues amounted to $524.66 million (2020: $786.74 million). JAMT highlighted that, “$248 million of this decrease resulted from the sale of 12 of the studios at the Manor Park complex in the year ago quarter vs no real estate sales this quarter. The remaining $16 million sales reduction mainly reflects a decrease in export sales partly offset by an increase in domestic sales in the manufacturing business.”
Cost of sales increased by 6% to $1.71 billion (2020: $1.61 billion). Hence, gross profit fell 4% to $561.49 million (2020: $584.89 million). For the quarter, gross profit closed at $111.58 million relative to $210.16 million reported in the previous year’s corresponding quarter.
Other income was reported at $157.80 million versus other income of $78.54 million in the prior year. JAMT noted, “The increase in Other Income primarily resulted from higher realized investment gains at QWI. The reversal from Fair Value Losses on Investments of $482 million to Gains of $354 million arose from the significant recovery QWI experienced in its shareholdings during the year, as the effects of COVID-19 on many business operations began to reverse.”
Administrative expenses increased by 5% to $243.95 million for the year ended September 30, 2021 relative to $233.17 million for 2020. Sales and Marketing costs contracted by 33% totaling $34.65 million (2020: $51.73 million). For the quarter administrative expenses and sales & marketing costs closed at $57.24 million (2020: $68.61 million) and $7.54 million (2020: $11.01 million) respectively. The Company noted, “The reductions in sales costs resulted from curtailed activity in some of our overseas markets due to COVID related travel restrictions which limited our ability to implement certain overseas sales programmes.” Additionally, “The increases in interest expense during the quarter and full year resulted from higher borrowings at QWI.”
Operating profit closed at $795.41 million compared to an operating loss of $103.69 million documented twelve months earlier. For the quarter, operating profit totalled $108.19 million (2020: $172.54 million).
Finance cost for the year amounted to $36.02 million relative to $31.75 million reported in 2020. While finance costs for the quarter closed $10.10 million (2020: $7.80 million).
Pre-tax profit amounted to $759.39 million relative to the pre-tax loss of $135.44 million booked the previous year. For the quarter, pre-tax profit amounted to $98.08 million (2020: $164.74 million).
Tax charge for the year amounted to $154.38 million in contrast to a credit of $65.72 million in 2020. Net profit for the year totaled $605.01 million relative to net loss of $69.72 million recorded twelve months earlier. Profit for the fourth quarter closed at $104.24 million (2020: $137.61 million).
For the year end, net profit attributable to shareholders rose to $391.08 million (2020: $222.40 million). While for the quarter, net profit attributable to shareholders amounted to $78.45 million, a 40% decline relative to the $131.65 million reported in the prior comparable quarter. Total comprehensive income closed the year at $605.01 million relative to loss of $69.72 million in 2020.
For the year ended September 30, 2021, earnings per share totaled $0.18 compared to $0.10. While for the quarter, the EPS was $0.04 (2020: $0.06). The numbers of shares used in the calculations are 2,146,150,377 units. JAMT last traded on November 15, 2021 at $3.85 with a corresponding P/E ratio of 21.13 times.
JAMT noted, “The Group has now, finally received planning approval for a major expansion of the factory to meet and prepare for continued growth and this project is expected to begin construction in 2022.Also next year the manufacturing division will relocate its soup and spices activities from Bell Road to a new location in the Richmond Park area of Kingston.”
Balance Sheet Highlights:
As at September 30, 2021, the Company’s total assets amounted to $4.12 billion, a 17% increase when compared to the $3.52 billion reported as at September 2020. This increase was attributable to a 135% growth in ‘Investment’ from $1.60 billion in 2020 to $2.15 billion for the period under review. This was tempered by ‘Cash and Bank’ which closed at $184.90 million (2020: $321.70 million).
Shareholders’ Equity totalled $2.06 billion as at September 30, 2021 (2020: $1.72 billion), resulting in a book value per share of $0.96 (2020: $0.80).
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