November 15, 2023

Jamaica Producers Limited (JP) for the nine months ended September 30, 2023, reported a 67% decrease in Revenue totaling $7.12 billion compared to $21.57 billion in the corresponding period last year. Revenue for the third quarter had a 100% decrease to close at $27.25 million compared to $7.18 billion for the comparable quarter of 2022.

Cost of Sales amounted to $5.06 billion (2022: $15.47 billion), this represents a decrease of 67% year over year. Consequently, gross profit decreased by 66% to $2.06 billion compared to $6.10 billion for the nine months ended September 30, 2022. The company booked gross profit of $27.25 million for the third quarter versus $2.10 billion reported for the similar quarter of 2022.

Administrative, selling, and other operating expenses decreased to $1.44 billion (2022: $3.55 billion).

Operating Profit decreased by 69% from $2.75 billion in 2022 to $856.11 million in the period under review.

Share of profit in associated company for the nine months ended September 30, 2023, amounted to $1.12 billion, a 96% increase relative to $571.72 million reported in 2022.

Gain on disposal of associate amounted to $11.09 billion (2022: nil).

Profit before finance cost and taxation for the nine months ended September 30, 2023, amounted to $13.07 billion, a 294% increase relative to $3.32 billion reported in 2022. Profit before finance cost and taxation for the third quarter amounted to $498.24 million (2022: $1.32 billion).

Finance Cost totalled $71.51 million a 57% decrease from the corresponding period last year. (2022: $166.06 million).

Profit before Income Tax for the nine months ended September 30, 2023, amounted to $13.00 billion, a 312% increase relative to $3.15 billion reported in 2022.

Income Tax Expense for the nine months ended September 30, 2023, decreased to $189.92 million (2022: $463.53 million).

Net Profit for the nine months amounted to $12.81 billion, a 376% increase from the $2.69 billion reported in 2022. For the third quarter, net profit was $493.74 million (2022: $1.10 billion).

Net profit attributable to shareholders amounted to $12.41 billion (2022: $1.45 billion).

Consequently, Earnings Per Share for the nine months amounted to $11.05 (2022: EPS: $1.30), while Earnings Per Share for the quarter totaled $0.44 (2022: EPS: $0.53). The twelve-month trailing EPS was $11.81 and the number of shares used in these calculations was 1,122,144,036.

Notably, JP’s stock price closed the trading period on November 15, 2023 at a price of $22.06 with a corresponding P/E ratio of 1.87x.

Balance Sheet Highlights

The company’s assets totalled $32.30 billion (2022: $45.89 billion). The movement in total assets can be attributed to ‘Property, plant and equipment’ and ‘Securities purchased under resale agreements’ falling to $142.10 million (2022: $23.38 billion) and $581.07 million (2022: $9.31 billion), respectively. This was offsetted by a $29.15 billion increase in ‘Interest in associated company’ to close at $30.59 billion (2022: $1.44 billion).

Shareholder’s equity was $31.88 billion (2022: $18.76 billion), representing a book value per share of $28.41 (2022: $16.71).

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