August 16, 2023
Jamaica Producers Limited (JP) for the six months ended June 30, 2023, reported a 51% decrease in Revenue totalling $7.09 billion compared to $14.39 billion in the corresponding period last year. Revenue for the Second quarter decreased 100% to close at $28.41 million compared to $7.48 billion for the comparable quarter of 2022.
Cost of Sales amounted to $5.06 billion (2022: $10.39 billion), this represents a decrease of 51% year over year. Consequently, gross profit decreased by 49% to $2.03 billion compared to $4.00 billion for the Six months ended June 30, 2022. The company booked gross profit of $28.41 million for the Second quarter versus $2.08 billion reported for the similar quarter of 2022.
Administrative Expenses decreased by 42% to close at $1.38 billion (2022: $2.39 billion).
Other Income increased 276% to close $211.37 million relative to the $56.25 million in 2022.
Operating Profit decreased by 48% from $1.66 billion in 2022 to $860.19 million in the period under review. While for the quarter, operating profit was $21.92 million (2022: $807.63 million).
Share of profit in associated company and joint venture company for the Six months ended June 30, 2023, amounted to $620.71 million, an 84% increase relative to $337.40 million reported in 2022. As for the quarter, Share of profit in associated company and joint venture company totalled $371.17 million versus $191.12 million booked in 2022.
Gain on disposal of associate amounted to $11.09 billion (2022: nil).
Profit before finance cost and taxation for the Six months ended June 30, 2023, amounted to $12.57 billion, a 529% increase relative to $2.00 billion reported in 2022. Profit before finance cost and taxation for the Second quarter amounted to $11.48 billion (2022: $998.75 million). Finance Cost-Interest totalled $66.82 million a 42% decrease from the corresponding period last year (2022: $114.61 million).
Profit Before Income Tax for the six months ended June 30, 2023, amounted to $12.50 billion, a 564% increase relative to $1.88 billion reported in 2022. Profit Before Income Tax for the Second quarter amounted to $11.47 billion (2022: $940.78 million).
Income Tax Expense for the six months ended June 30, 2023, had a 35% increase to reach $190.11 million (2022: $293.21 million). As such, Net Profit for the Six months amounted to $12.31 billion, a 674% increase from the $1.59 billion reported in 2022. For the Second quarter, Net Profit was $11.47 billion (2022: $779.72 million).
Net Profit Attributable to shareholders of the company for the six months ended June 30, 2023, amounted to $11.91 billion comparable with $864.07 million in 2022. Management noted, “The results for the Second Quarter and the First Half reflect a significant increase relative to the same period in the previous year and can be attributed, in part, to the successful amalgamation of the businesses of PanJam Investment Limited and JP to form the Pan Jamaica Group Limited (“PJG”). This amalgamation became effective on 1 April 2023 (at the beginning of the Second Quarter) and involved the transfer of the operating businesses of JP to PJG in exchange for a 34.5% interest in PJG. PJG is now an associated company of JP, and JP’s associated company interest in PJG is now JP’s single largest asset.”
Earnings Per Share for the Six months amounted to $10.61 (2022: EPS: $0.77), while Earnings Per Share for the quarter totalled $10.22 (2022: EPS: $0.41). The twelve-month trailing EPS was $11.89, and the number of shares used in these calculations was 1,122,144,036.
Notably, JP’s stock price closed the trading period on August 16, 2023, at a price of $19.25 with a corresponding P/E ratio of 1.62x.
Balance Sheet Highlights
The company’s assets totalled $31.85 billion (2022: $44.97 billion). This decline was primarily due to ‘Property, Plant and Equipment’ decreasing by $22.76 billion to close at $139.43 million (2022: $22.90 billion).
Shareholder’s equity was $31.39 billion (2022: $18.43 billion), representing a book value per share of $27.97 (2022: $16.43).
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