JETCON reports 140% increase in six months net profit

August 15, 2022

JETCON for the six months ended June 30, 2022 reported total turnover of $506.41 million, 23% more than the $410.52 million reported for the corresponding period in 2021. Turnover for the second quarter went up to $251.58 million compared to the $208.49 million reported in 2021.

Cost of Sales for the period increased 23% to $434.48 million (2021: $353.90 million). Despite the increase, Gross Profit for the period rose 27% to $71.94 million compared to $56.63 million in 2021. Gross profit for the quarter amounted to $32.21 million relative to the $31.48 million reported for the same quarter of 2021. JETCON noted, “Cost of Sales rose a bit faster in the second quarter than sales as certain local cost to put vehicles appropriate sales climbed sharply of 24 percent, versus sales increase of 21 percent. Cost of sales for the six months were in line with revenues; both up 23 percent.”

Total Expenses for the first six months increased by 14% to $57.81 million (2021: $50.75 million). Of this, Selling and Marketing Expenses for the period increased to $14.70 million (2021: $11.15 million), while Administrative and Other Expenses reflected an increase of 10%, closing at $34.47 million (2021: $31.20 million). Finance costs closed the period at $51,423 a 96% decrease when compared to the $1.37 million booked in the prior year. Other operating cost for the six months period closed $8.59 million relative to $7.02 million booked for the corresponding period 2021.

Consequently, Profit before taxation amounted to $14.13 million relative to the $5.88 million in 2021, representing a 140% increase year-on-year for the period.

There were no taxation charges for the period as such, net profit for the period amounted to $14.13 million relative to the $5.88 million booked twelve months prior. While net profit for the quarter amounted to $4.19 million compared to a net profit of $5.29 million for the same quarter in 2021.

As such, the earnings-per-share for the period amounted to $0.024 relative to $0.01 last year. EPS for the quarter amounted to $0.007 in contrast to a EPS of $0.009 recorded in the prior comparable period. The twelve months EPS is 0.041 where the number of shares used in our calculation is 583,500,000. JETCON’s last traded price as at August 15, 2022, was $1.14 with a corresponding P/E ratio of 28.10 times.

It was stated, “The above is an indication that we continue to recover from the fall out we experienced over the past two years. July sales a marginally above last year in dollars but we expect sales to continue on a positive path for the remainder of the year. With total inventories at $366 million we have an adequate supply of vehicles with a small stock of EV units, to meet the needs of customers who want these units.”


Balance Sheet Highlights:

The company, as at June 30, 2022 recorded total assets of $651.50 million, a 2% contraction when compared to $662.57 million recorded last year. This rise was primarily attributable to ‘Cash and Bank Deposits’ which totalled $18.04 million (2021: $7.52 million). The increase was offset by a decline in ‘Inventories’ by $36.73 million to close at $365.85 million (2021: $402.58 million).

Total Stockholders’ Equity as at June 30, 2022, closed at $570.14 million, compared to $546.46 million for the corresponding period last year. This resulted in a book value per share of $0.977 per share compared to $0.937 as at June 30, 2021.



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