August 17, 2022
Jamaica Producers Group Limited (JP), for the six months ended June 30, 2022, experienced a 26% increase in revenue to total $14.39 billion compared to the $11.40 billion reported in 2021. The company posted second quarter revenue of $7.48 billion, a 26% increase on 2021’s $5.92 billion.
The revenue for the Food & Drink Division grew 27% to total $8.67 billion relative to the $6.81 billion reported in 2021. According to JP, “During the year, the Division experienced material increases in costs associated with raw material commodities, personnel and logistics. These cost increases must be recovered, to the extent possible, through increases in selling prices. The initiative to adjust prices to align with market conditions is now well underway, but during the First Half we experienced some margin compression in the instances where we delayed price increases to balance any uncertainty in demand or limits to consumer confidence. However, the adverse impact of reduced margins was more than offset by the benefit of solid volume growth.”
Revenue in the Logistics and Infrastructure Division rose 24% year over year to total $5.71 billion (2021: $4.60 billion). Management noted, “The improved performance reflects our strategy to build a diversified Caribbean logistics platform through business development initiatives, capacity expansion and select acquisitions. Our recently acquired UK-based joint venture shipping line — Geest Line — and US-based freight consolidation business — Miami Freight & Shipping — both contributed to the improved profitability of the Division.”
The Corporate Services division earned $79.80 million relative to $66.32 million in 2021, a 20% increase.
The cost of sales for the six months increased by 28% to total $10.39 billion compared to $8.11 billion reported for the comparable period in 2021. Nevertheless, gross profit rose to $3.99 billion, a 21% uptick on the $3.29 billion documented in 2021. Gross profit for the second quarter amounted $2.08 billion compared to $1.76 billion booked for the same quarter of 2021. Other income fell to $56.25 million, a 85% contraction relative to $380.38 million booked in the prior corresponding period.
JP’s marketing, selling and distribution expenses rose 24% to close at $2.39 billion, this compares to $1.93 billion booked a year earlier. JP also recorded a share of gain in joint venture and associated company of $337.40 million, relative to gain of $48.08 million in the previous year.
Finance cost was reported at $114.61 million for the period relative to the $125.47 million reported in 2021. This resulted in a profit before taxation of $1.88 billion for the period (2021: $1.66 billion). Profit before tax for the second quarter totalled $940.78 million versus $964.26 million reported for the same quarter of 2021.
The Company incurred tax charges of $293.21 million (2021: $319.33 million). Consequently, net profit for the period rose 18% to $1.60 billion (2021: $1.34 billion). Notably, net profit attributable to stockholders totalled $864.07 million; this compared to $609.58 million, a 42% increase. Net profit attributable to shareholders for the quarter rose 30% to total $457.97 million relative to the $353.08 million 2021.
Total comprehensive income for the six months ended June 30, 2022 amounted to $1.15 billion (2021: $1.50 billion). Meanwhile for the quarter, total comprehensive income totalled $433.10 million (2021: $987.26 million).
Earnings per share for the period amounted to $0.77 (2021: $0.54). EPS for the quarter amounted to $0.41 (2021: $0.31), while the twelve-month trailing earnings per share amounted to $1.87. The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock last traded on August 16, 2022 at $20.16 with a corresponding P/E of 10.78 times.
The Group highlighted that, “Based on our acquisition strategy, we will continue to identify other logistics services that support trade with the Caribbean, and Food & Drink businesses in markets that present definite new growth opportunities for the Group. With shareholders’ equity of $18.4 billion (an increase of 9% relative to the prior year) and cash and investments of $10.9 billion, we believe that the JP Group has the balance sheet strength to support this strategy.”
Balance Sheet Highlights:
As at June 30, 2022, the company’s assets totalled $44.97 billion, 7% more than its value of $42.18 billion a year ago. This increase in total assets was due largely to increases in ‘Interest in associated companies and joint venture’ which amounted to $1.28 billion (2021: $182.40 million) and ‘Accounts receivable’ which ended at $3.70 billion (2021: $2.95 billion), respectively.
The Company ended the period with equity attributable to equity holders of the parent in the amount of $18.43 billion relative to $16.87 billion in 2021. The company now has a book value per share of $16.43 versus $15.04 in 2021.
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