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).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.