August 15, 2023

MAILPAC Group Limited (MAILPAC) for the six-month ended June 30, 2023, reported a 0.3% decrease in revenue totaling $804.16 million compared to $806.75 million in the corresponding period last year. Revenue for the second quarter had a 1% decrease to close at $406.15 million compared to $408.29 million for the comparable quarter of 2022.

Cost of Sales amounted to $411.79 million (2022: $422.64 million), this represents a decrease of 3% year over year. Consequently, gross profit increased by 2% to $392.37 million compared to $384.11 million for the six-month ended June 30, 2022. The company booked gross profit of $201.34 million for the second quarter versus $201.28 million reported for the similar quarter of 2022.

Administrative and general expenses increased by 7% to close at $196.77 million (2022: $184.28 million), while Selling and promotion costs decreased by 16% from $37.55 million in 2022 to $31.51 million in the period under review. As a result, total expenses for the six-month ended June 30, 2023 amounted to $228.28 million, a 3% increase relative to $221.83 million reported in 2022. MAILPAC noted “ This increase was primarily due to a planned salary restructuring exercise and higher administrative expenses related to rent and security. These strategic decisions aimed to fortify our operational efficiency and long-term sustainability.”

Operating profit for the six-month ended June 30, 2023, amounted to $164.09 million, a 1% increase relative to $162.28 million reported in 2022. Operating profit for the second quarter amounted to $88.26 million (2022: $94.38 million). Finance and policy cost totalled $30.93 million a 6% decrease from the corresponding period last year. (2022: $32.88 million).

Profit Before Taxation for the six-month ended June 30, 2023, amounted to $134.58 million, a 2% decrease relative to $137.62 million reported in 2022. Profit Before Taxation for the second quarter amounted to $74.43 million (2022: $81.31 million).

Net Profit for the six-month amounted to $134.58 million, a 2% decrease from the $137.62 million reported in 2022. For the second quarter, Net Profit was $74.43 million (2022: $81.31 million).

Consequently, Earnings Per Share for the six-month amounted to $0.05 (2022: EPS of $0.06), while Earnings Per Share for the quarter totaled $0.03 (2022: EPS: $0.03). The twelve-month trailing EPS was $0.12, and the number of shares used in these calculations was 2,500,000,000.

Notably, MAILPAC’s stock price closed the trading period on August 14, 2023, at a price of $1.88 with a corresponding P/E ratio of 15.41x.

Balance Sheet Highlights

As at June 30, 2023, total assets closed at $631.62 million, 12% lower than the $717.88 million booked for June 2022. Notably, ‘cash and cash equivalents’ was the main contributor to the decrease amounting to $169.46 million (2022: $252.63 million).

Shareholder’s equity was $537.17 million (2022: $607.18 million), representing a book value per share of $0.21 (2022: $0.24).

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