August 15, 2023
JFP Limited (JFP) for the six months ended June 30, 2023 reported a 30% decrease in Revenue totaling $150.04 million compared to $213.63 million in the corresponding period last year. Revenue for the second quarter had a 28% decrease to close at $74.27 million compared to $103.35 million for the comparable quarter of 2022. JFP highlighted, “Despite moderate sales thus far in the year, JFP has faced challenges in completing and delivering jobs due to factors beyond the company’s control, including material availability, logistics challenges and client design revisions.”
Cost of Sales amounted to $70.03 million (2022: $68.25 million), this represents an increase of 3% year over year. Consequently, gross profit decreased by 45% to $80.01 million compared to $145.39 million for the six months ended June 30, 2022. The company booked gross profit of $37.63 million for the second quarter versus $68.12 million reported for the similar quarter of 2022.
Other Income decrease by 92% to close at $324,878 (2022: $3.86 million), while Administrative Expenses increase by 9% from $93.67 million in 2022 to $101.93 million in the period under review. As a result, total operating expenses for the six months ended June 30, 2023, amounted to $108.66 million, a 3% increase relative to $105.44 million reported in 2022.
Operating Loss for the six months ended June 30, 2023, amounted to $28.32 million relative to operating profit of $43.82 million reported in 2022. Operating Loss for the second quarter amounted to $18.48 million (2022: Profit of $7.81 million). Net Financial cost totaled $10.06 million a 22% increase from the corresponding period last year. (2022: $8.22 million).
Loss before Tax for the six months ended June 30, 2023, amounted to $38.38 million, versus profit of $35.60 million reported in 2022. Loss before Tax for the second quarter amounted to $23.51 million (2022: Profit of $690,371).
There were no taxes for the period under review. Consequently, Net Loss for the six months ended June 30, 2023, amounted $38.38 million (2022: Profit of $35.60 million). For the second quarter, Net Loss was $23.51 million (2022: Profit of $690,371).
Consequently, Loss Per Share for the six months amounted to $0.03 (2022: EPS: $0.03), while Loss Per Share for the quarter totaled $0.021 (2022: EPS: $0.0006). The twelve-month trailing LPS was $0.05 and the number of shares used in these calculations was 1,120,000,000.
Notably, JFP’s stock price closed the trading period on August 14, 2023, at a price of $1.63.
Balance Sheet Highlights
The company’s assets totaled $498.53 million (2022: $562.75 million). The decline in total assets was particularly driven by a $113.14 million contraction in ‘Investments’ to close at $9.74 million (2022: $122.88 million).
Shareholder’s equity was $154.00 million (2022: $212.97 million), representing a book value per share of $0.14 (2022: $0.19).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
