November 15, 2024

Jamaica Producers Limited (JP)

Unaudited financials for the nine months ended September 30, 2024:

Jamaica Producers Limited (JP) for the nine months ended September 30, 2024 reported a 99% decrease in Turnover totaling $85.29 million compared to $7.12 billion in the corresponding period last year. Turnover for the third quarter had a 21% increase to close at $32.99 million compared to $27.25 million for the comparable quarter of 2023.

Cost of Sales amounted to $0 (2023: $5.06 billion), this represents a decrease of 100% year over year. Consequently, gross profit decreased by 96% to $85.29 million compared to $2.06 billion for the nine months ended September 30, 2023. The company booked gross profit of $32.99 million for the third quarter versus $27.25 million reported for the similar quarter of 2023.

Selling, administrative and other operating expenses decreased by 87% to close at $187.95 million (2023: $1.44 billion), while Operating Profit decreased by 104% from $856.11 million in 2023 to an operating loss of $31.06 million in the period under review. As a result, share of profit in associated company and joint venture company for the nine months ended September 30, 2024 amounted to $895.18 million, a 20% decrease relative to $1.12 billion reported in 2023.

Profit before finance cost and taxation for the nine months ended September 30, 2024, amounted to $864.11 million, a 93% decrease relative to $13.07 billion reported in 2023. Profit before finance cost and taxation for the third quarter amounted to $269.65 million (2023: $498.24 million). Finance Cost-Interest totalled $19.89 million a 72% decrease from the corresponding period last year. (2023: $71.51 million).

Profit Before Income Tax for the nine months ended September 30, 2024, amounted to $844.23 million, a 94% decrease relative to $13.00 billion reported in 2023. Profit  Before Income Tax for the third quarter amounted to $262.61 million (2023: $493.55 million).

Income Tax Expense for the nine months ended September 30, 2024 had a substantial decrease to reach $6.91 million (2023: $189.92 million) . Net Profit for the nine months amounted to $837.32 million, a 93% decrease from the $12.81 billion reported in 2023. For the third quarter, Net Profit was $261.01 million (2023: $493.74 million).

Consequently, Earnings Per Share for the nine months amounted to $0.75 (2023: EPS: $11.05), while Earnings Per Share for the quarter totaled $0.23 (2023: EPS: $0.44). The twelve month trailing EPS was $3.52 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, 2024 at a price of $22.00 with a corresponding P/E ratio of 6.25x.

Balance Sheet Highlights

The company’s assets totalled $37.82 billion (2023: $32.35 billion). The movement in total assets was mainly influenced by $4.17 billion increase in ‘Interest in associate’ amounting to $34.76 billion (2023: $30.59 billion). Additionally, there was a $1.72 billion increase in ‘Investment property’ amounting to $1.72 billion (2023: nil).

Shareholder’s equity was $37.40 billion (2023: $31.88 billion), representing a book value per share of $33.33 (2023: $28.31).

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