November 10, 2020
Jamaica Producers Group Ltd (JP)
Unaudited Financial Statements for Nine Months ended September 30, 2020:
Jamaica Producers Group Limited (JP), for the nine months ended September 30, 2020 experienced a 4% decrease in revenue to total $14.84 billion compared to the $15.38 billion reported in 2019. The Company posted 2% increase in third quarter revenue to $5.32 billion (2019: $5.23 billion).
The Food & Drink Division was the largest contributor to revenue for the group, ending at $9.02 billion (2019: $9.05 billion). The Company highlighted that, “During the third quarter, the Division experienced reduced specialty food sales in travel retail, foodservice and convenience channels but this was offset by increased sales of consumer staples through supermarkets.”
The Logistics and Infrastructure Division accounts for the major share of the Group’s net assets and, in turn, its profits. Divisional year-to-date revenues of $5.82 billion (2019: $6.34 billion), down 8% over the prior year, primarily from reduced trading, shipping and consumption as a result of the COVID-19 pandemic. The L&I Division generated 2020 year-to-date profit before finance cost and taxation of $2.07 billion, a 15% reduction over the prior year. Notwithstanding the pandemic, the Division remains solidly profitable, well capitalised and competitive.
The Corporate Services division earned revenue of $69.39 million relative to $66.89 million in 2019.
The Cost of Operating Revenue for the nine months increased by 4% to total $10.56 billion compared to $10.12 billion reported for the comparable period in 2019. Gross Profits decreased to total $4.28 billion, a 19% decline relative to the $5.26 billion documented in 2019. Gross profit for the third quarter amounted to $1.47 billion compared to $1.76 billion booked for the same quarter of 2019. Other income increased to $498.15 million, a 57% improvement relative to $316.44 million booked the prior corresponding period.
JP’s marketing, selling and distribution expenses closed at $2.80 billion, a negligible increase when compared to the $2.79 billion booked a year earlier. As such, profit from operations amounted to $1.98 billion relative to $2.79 billion booked for the corresponding period in 2019. Profit from operations for the quarter amounted to $674.20 million compared to $955.45 million reported for the corresponding quarter of 2019. JP also recorded a share of point in joint venture and associated company of $4.13 million relative to $47.28 million in the previous year. For the quarter, the Company recorded gain on disposal of associate of $1.76 billion which was attributable to the group selling 100% of its subsidiary P.S.C. Limited to its associated company SAJE Logistics Infrastructure Limited (“SAJE”).
Finance cost was reported at $213.76 million for the period relative to the $234.34 million reported in 2019. This resulted in a profit before taxation of $3.53 billion for the period (2019: $2.60 billion). Profit before tax for the third quarter totalled $2.37 billion versus $918.76 million reported for the same quarter of 2019.
The Company incurred tax charges of $361.97 million (2019: $530.08 million). Consequently, Net Profit for the period rose 53% to $3.17 billion (2019: $2.07 billion). Net profit for the quarter amounted to $2.23 billion versus the $730.16 million booked a year prior. Notably, Net profit attributable to stockholders totalled $1.97 billion; this compares to $958.97 million, a 106% rise. Net profit attributable to shareholders for the quarter went up to $1.63 billion (2019: $329.68 million).
Total comprehensive income for the period under review closed at $3.62 billion (2019: $2.34 billion). While for the quarter, total comprehensive income totalled $2.36 billion (2019: $824.22 million).
Earnings per share for the period amounted to $0.17 (2019: $0.85). EPS for the quarter amounted to $0.15 (2019: $0.29), while the twelve-month trailing earnings per share amounted to $1.98. The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock last traded on November 10, 2020 at $21.75.
Balance Sheet Highlights:
As at September 30, 2020, the Company’s Assets totalled $41.51 billion, 8% more than its value of $38.61 billion a year ago. This increase in total assets was due largely to increases in ‘Short-term investments’ and ‘Accounts receivables’, which amounted to $1.02 billion (2019: $26.53 million) and $4.54 billion (2019: 2.86 billion) respectively. ‘Property, Plant and Equipment’ increased to close at $22.36 billion (2019: $21.56 billion). Employee benefit asset increased 4% to $2.07 billion relative to $1.99 billion as at September 30, 2019.
The Company ended the period with equity attributable to equity holders of the parent in the amount of $16.24 billion relative to $13.91 billion in 2019. The company now has a book value per share of $14.47 versus $12.39 in 2019.
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