May 17, 2023
JFP Limited (JFP) recorded a 31% or $34.51 million fall in revenue from $110.28 million in 2022 to $75.77 million in Q1 of FY23. Cost of sales however rose by 1% or $383,607 to $33.39 million (2022: $33.01 million). In regard to revenue, management noted that, “This decline was due to delays beyond the control of JFP’s production department. Two factors include changes to the design/build process and the logistics required to return to the work environment as the primary project pending finalization is located inside the local international airport. These jobs were originally forecasted to be completed in the first quarter.”
The fall in revenue led to a 45% decline in JFP’s first quarter gross profit, which fell to $42.38 million from $77.27 million in 2022.
Other income closed the three-month period at $651,593, 119% down from $3.40 million booked twelve months earlier. JFP noted, “This was mainly due to a decline in the value of equity shares held.”
However, total expenses grew by 15% to $51.57 million (2022: $44.66 million). The increase was due to an 18% rise in administrative expenses to $48.59 million supporting a larger staff complement while selling and distribution expenses declined by 18% to $2.98 million due to a decline in sales and hence sales-related commissions paid to external account executives.
This resulted in an operating loss for the period of $9.84 million, relative to an operating profit of $36.01 million reported in Q1 of 2022.
Net finance Costs reported were $5.03 million (2022: $1.10 million).
Net loss closed the 2023 first quarter at $14.87 million versus a net profit of $34.91 million in Q1 FY2022.
JFP reported a loss per share (LPS) of $0.013 compared to an earnings-per-share (EPS) of $0.03 reported in 2022. On a twelve-months trailing basis JFP output an LPS of $0.031. The number of shares used in our calculations is 1,120,000,000 units. JFP stock last traded on May 16, 2023 at $1.65.
Balance Sheet at a glance:
At the end of Q1, March 31, 2023, JFP had Total Assets of $511.86 million (2022: $521.77 million), reflecting a 2% year over year decline. The primary decline in the asset base is due to ‘Cash and cash equivalents’ which amounted to $34.20 million (2022: $146.90 million). JFP noted that the reduction in cash and cash equivalents was due to the investment of the funds generated from last year’s IPO.
JFP highlighted that due to losses made in the last two quarters, Shareholders’ Equity declined to $177.51 million (2022: $212.28 million). As a result, as at March 31, 2023 the company’s book value per share amounted to $0.16 relative to $0.19 reported in the prior corresponding quarter.
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