JETCON reports 50% decline in nine months total comprehensive income

December 20, 2019

Jetcon Corporation Limited (JETCON), for the nine months ended September 30, 2019 reported a 16% decline in turnover to $747.25 million (2018: $892.29 million). However, turnover for the quarter amounted to $280.08 million relative to $288.29 million in 2018, a 3% decline year over year.

Cost of Sales also decreased by 16% to $622.48 million (2018: $740.45 million) and as a result, gross profit declined 18% to $124.77 million compared to $151.84 million reported the prior year’s corresponding period. For the third quarter gross profit rose 28% from $34.72 million in 2018 to $44.40 million.

Other operating income amounted to $1.63 million (2018: $3.25 million) for the period ended September 30, 2019, thus resulting in total operating income of $126.40 million (2018: $155.09 million), down 18% year over year.

Total expenses increased 30% to $80.08 million (2018: $61.57 million). Of this; Selling and marketing expenses saw a 13% decline to total $16.86 million (2018: $19.33 million), while administrative and other expenses rose 15% to $28.55 million (2018: $24.75 million). Other operating costs totalled $33.56 million (2018: $15.63 million). For the quarter, total expenses closed at $23.61 million, a 5% rise when compared to 2018’s $22.46 million.

Profit before taxation amounted to $46.32 million relative to $93.52 million reported for the corresponding period in 2018, representing a 50% decline year-on-year.

There was no taxation for the period, thus resulting in net profit of $46.32 million relative to $93.52 million in 2018, while net profit for the quarter totalled $21.54 million relative to $12.99 million in 2018.

Total comprehensive income for the nine months amounted to $46.32 million compared to $93.52 million booked in 2018.

As such, the earnings-per-share for the period amounted to $0.08 relative to $0.16 last year. The earnings-per-share for the third quarter amounted to $0.04 (2018: $0.02), while the twelve-month earnings-per-share totalled $0.08. The number of shares used in our calculation is 583,500,000. The stock price last traded on December 20, 2019 at $1.41.

JETCON noted, “sales for October were ahead of the similar period in 2018 and we are cautiously optimistic that the sales for the final quarter will exceed that of the 2018 quarter and help to add to the profit reported for first nine months of the year.”

Balance Sheet Highlights:

The company, as at September 30, 2019, recorded total assets of $664.20 million, an increase of 6% when compared to $626.77 million recorded last year. This rise was attributed primarily to the increase in Jetcon’s fixed assets which ended the period at $132.87 million, a 56% increase when compared to 2018’s $85.30 million. The company mentioned, “we acquired additional property next to our existing main location resulting in fixed assets growing by $47 million over the amount on record as of June 2018. The other main asset inventories declined as we continue to work off excess inventories.”

Total Stockholders’ Equity closed at $532.45 million, compared to $506.13 million for the corresponding period last year. This resulted in a book value of $0.91 per share compared to $0.87 as at September 30, 2018.

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