April 3, 2024
MAILPAC Group Limited (MAILPAC) for the year ended December 31, 2023, reported a 1% decrease in Revenue totaling $1.67 billion compared to $1.69 billion in the corresponding period last year. Revenue for the fourth quarter had a 1% decrease to close at $469.87 million compared to $466.21 million for the comparable quarter of 2022.
Cost of Sales amounted to $864.40 million (2022: $865.43 million). Consequently, gross profit fell to $809.96 million compared to $821.14 million for the year ended December 31, 2022. The company booked gross profit of $218.10 million for the fourth quarter versus $229.68 million reported for the similar quarter of 2022.
Administrative and general expenses increased by 7% to close at $424.34 million (2022: $395.33 million), while selling and promotion costs decreased by 1% from $66.77 million in 2022 to $66.41 million in the period under review. As a result, total expenses for the year ended December 31, 2023, amounted to $490.76 million, a 6% increase relative to $462.10 million reported in 2022. Management noted, “This rise can be attributed to strategic investments in the growth of the business, including increased marketing, the rental of new locations and investments in entering the broader price-conscious market segment.”
Operating profit for the year ended December 31, 2023, amounted to $319.21 million, an 11% decrease relative to $359.04 million reported in 2022. Operating profit for the fourth quarter amounted to $72.42 million (2022: $104.18 million). Finance and policy cost totalled $61.50 million (2022: $62.42 million).
Profit Before Taxation for the year ended December 31, 2023, amounted to $261.68 million, a 15% decrease relative to $308.24 million reported in 2022. Profit Before Taxation for the fourth quarter amounted to $58.48 million (2022: $92.82 million).
Net Profit for the year amounted to $260.14 million, a 16% decrease from the $308.04 million reported in 2022. For the fourth quarter, Net Profit was $56.95 million (2022: $92.93 million).
Consequently, Earnings Per Share for the year amounted to $0.10 (2022: EPS of $0.12), while Earnings Per Share for the quarter totaled $0.02 (2022: EPS of $0.04). The twelve-month trailing EPS was $0.10, and the number of shares used in these calculations was 2,500,000,000.
Notably, MAILPAC’s stock price closed the trading period on April 2, 2024, at a price of $2.13 with a corresponding P/E ratio of 20.47x.
Balance Sheet Highlights
As at December 31, 2023, total assets closed at $674.93 million, 2% lower than the $687.71 million booked for December 2022. Notably, ‘cash and cash equivalents’ was the main contributor to the decrease amounting to $198.85 million (2022: $209.48 million).
Shareholder’s equity was $562.73 million (2022: $577.59 million), representing a book value per share of $0.23 (2022: $0.23).
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