March 31, 2023

JFP Limited (JFP), for the twelve months ended December 31, 2022 recorded a 104% increase in revenue from $233.74 million in 2021 to $476.39 million in 2022. Cost of sales rose by 86% to $239.60 million (2021: $129.10 million).

The growth in revenue led to a significant rise in JFP’s twelve months gross profit, which rose to $236.79 million from $104.64 million in 2021.

Other income closed the twelve-month period at $11.75 million down 85% from $77.31 million booked twelve months earlier. Management noted, “This was a result of reduced income from the current investment at GK Capital. A number of equity shares held saw a significant decline in value.”

However, total operating expenses grew by 36% to $211.87 million (2021: $155.97 million). Of total expenses, administrative and selling & distribution expenses grew by 31% and 133% respectively, to $194.56 million (2021: $148.54 million) and $17.31 million (2021: $7.44 million) respectively. JFP mentioned that the increase in selling and distribution expenses was due to, “JFP participated in an increased number of trade shows and the overall increase in sales over the financial year led to an increase in the commission for external sales representatives.”

This resulted in an operating profit for the period of $36.68 million, relative to an operating profit of $25.97 million reported in 2021.

JFP’s profit before tax grew to $16.14 million (2021: $8.33 million), taxation for the period under review amounted to $1.13 million (2021: nil). As a result, twelve months net profit closed $15.01 million (2021: $8.33 million). For the quarter, net loss closed at $29.11 million versus net profit of $3.33 million in the prior comparable period.

Based on current earnings, JFP reported an earnings per share (EPS) of $0.013 compared to an earnings per share (EPS) of $0.007 reported in 2021. For the quarter, Loss per share (LPS) totalled $0.026 (2021: EPS of $0.003).  On twelve-months trailing basis JFP output an EPS of $0.013. The number of shares used in our calculations is 1,120,000,000 units. JFP stock last traded March 31, 2023 at $1.95 with a corresponding P/E of 145.53 times.

Balance Sheet at a glance:

As at December 31, 2022, JFP had Total Assets of $521.35 million (2021: $357.56 million), reflecting a 46% year over year increase. The primary increase in the asset base is due to ‘Cash and cash equivalents’ closing the period at $42.47 million (2021: $12.39 million) and ‘Receivables’ which amounted to $166.07 million (2021: $36.30 million).

Shareholders’ Equity amounted to $192.38 million (2021: $56.10 million). As a result, as at December 31, 2022 the company book value per share increased to $0.17 from $0.05 in the prior year.

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