JP reported a 24% increase in 1Q net profit

May 16, 2018

For first quarter ended March 31, 2018, Jamaica Producers Group Limited (JP) experienced a 31% increase in revenue to total $4.48 billion compared to the $3.41 billion reported in 2017. The revenues generated by the various segments are as follows:

JP Food & Drink division posted revenues of $2.64 billion relative to $1.83 billion reported in 2017, a 45% increase year over year.

JP Logistics & Infrastructure division contributed $1.83 billion to revenues, a 16% growth compared to the $1.58 billion recorded in 2017.

The Corporate Services division earned $26.29 million relative to $21.14 million in 2017, a 24% increase.

The cost of sales for the first three months increased by 35% to total $3.14billion compared to $2.32 billion reported for the comparable period in 2017. As a result, Gross Profits increased to total $1.34billion, a 23% growth on the $1.09 million documented in 2017.

JP’s administration expenses rose 17% to close at $815.26 million, this compares to $699.58 million booked a year earlier. Consequently, profit from operations improved to $520.75 million relative to $388.94 million.

JP also recorded a share of loss in joint venture and associated company of $421,000, down from $3.75 million profit in the previous year; finance costs rose 32% moving from $74.42 million in 2017 to $98.26 million. a 14% increase was observed in other income which closed at $53.05 million compared to $46.60 million booked for the comparable period in 2017.

Consequently, pre-tax profits stood at $475.11million, an increase of 30% compared to pre-tax profits of $364.76 million documented in 2017.

The company incurred tax charges of $112.21 million (2017: $72.17 million), resulting in Net Profit for the period increasing 24% to $362.91 million (2017: $292.59 million). Notably, net profit attributable to stockholders totaled $151.62 million, this compares to $93.11 million reported in 2017.

Earnings per share for the first quarter amounted to $0.14 (2017: $0.08), while the trailing earnings per share amounted to $0.83. The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock was trading at $16.50 as at May 15, 2018.

Balance Sheet Highlights:

As at March 31, 2018, the company’s assets totaled $32.42billion, 12% more than its value of $28.99 million a year ago. This increase in total assets was due largely to an increase in ‘Property, Plant & Equipment’ by $1.61 billion to a total of $21.28 billion relative to $19.68 billion the year prior.

The company ended the period with equity attributable to equity holders of the parent in the amount of $11.47 billion relative to $10.55 billion in 2017. The company now has a book value per share of $10.22 versus $9.40 in 2017.



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