March 8, 2024
Jamaica Producers Limited (JP) for the year ended December 31, 2023, reported a 75% decrease in Turnover totaling $7.15 billion compared to $29.00 billion in the corresponding period last year. Turnover for the fourth quarter had a 100% decrease to close at $29.28 million compared to $7.44 billion for the comparable quarter of 2022.
Cost of Sales amounted to $4.97 billion (2022: $21.34 billion), this represents a decrease of 77% year over year. Consequently, gross profit decreased by 72% to $2.18 billion compared to $7.66 billion for the year ended December 31, 2022. The company booked gross profit of $118.01 million for the fourth quarter versus $1.57 billion reported for the similar quarter of 2022.
Other income of $240.70 million was recorded for the year (2022: $205.21 million)
Total expenses valued $1.51 billion relative to $4.32 billion recorded a year prior.
Operating Profit decreased by 74% from $3.55 billion in 2022 to $909.94 million in the period under review.
As a result, share of profit/(loss) in associated company and joint venture company for the year ended December 31, 2023, amounted to $1.98 billion, a 46% increase relative to $1.36 billion reported in 2022.
Gain on disposal of subsidiary for the year amounted to $13.29 billion (2022: nil).
Profit before finance cost and taxation for the year ended December 31, 2023, amounted to $16.19 billion, a 230% increase relative to $4.90 billion reported in 2022. Profit before finance cost and taxation for the fourth quarter amounted to $3.12 billion (2022: $1.59 billion).
Finance Cost totalled $76.25 million, a 66% decrease from the corresponding period last year. (2022: $223.94 million).
Profit before income tax for the year ended December 31, 2023, amounted to $16.11 billion, a 244% increase relative to $4.68 billion reported in 2022. Profit before income tax for the fourth quarter amounted to $3.12 billion (2022: $1.53 billion).
Income Tax Expense for the year was $189.93 million (2022: $693.82 million). Net Profit for the year amounted to $15.92 billion, a 299% increase from the $3.99 billion reported in 2022. For the fourth quarter, Net Profit was $3.12 billion (2022: $1.30 billion).
Net Profit attributable to shareholders was $15.52 billion, up 575% from December 2022. For the fourth quarter, net profit attributable to shareholders was $3.12 billion compared to $844.72 million in 2022.
JP noted, “The significant increase in the Group’s profits relative to the prior year can be attributed, in part, to the successful amalgamation of PanJam Investments Limited and the operating businesses of JP to form the Pan Jamaica Group (“PJG”). The amalgamation became effective on 1 April 2023, and involved the transfer by JP of 100% of its shares in JP Global Holdings Limited (the subsidiary that held our interest in the operating businesses of JP) to PJG in exchange for a 34.5% interest in PJG. JP is now the largest shareholder of PJG. PJG is in turn an associated company of JP and JP’s associated company interest in PJG is now our single largest asset.”
Consequently, Earnings Per Share for the year amounted to $13.83 (2022: EPS: $2.05), while Earnings Per Share for the quarter totaled $2.78 (2022: EPS: $0.75). The number of shares used in these calculations was 1,122,144,036.
Notably, JP’s stock price closed the trading period on March 08, 2024, at a price of $23.81 with a corresponding P/E ratio of 1.72x.
Balance Sheet Highlights
The company’s assets totalled $37.25 billion (2022: $47.23 billion). The decline resulted from a 96% decline in ‘Securities purchased under resale agreements’ closing at $395.47 million.
Shareholder’s equity was $36.50 billion (2022: $19.13 billion), representing a book value per share of $32.52 (2022: $17.04).
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