April 1, 2021
Mailpac Group Limited (MAILPAC)’s revenue amounted to $1.73 billion for the twelve months ended December 31, 2020, 42% greater than $1.21 billion booked for 2019 year end. While, for the quarter, revenues closed at $518.85 million (2019: $362.27 million).
Cost of sales totalled $906.72 million (2019: $574.87 million). As a result, gross profit amounted to $819.52 million (2019: $638.83 million), 28% higher than the previous comparable period. Gross profit for the fourth quarter amounted to $235.17 million (2019: $197.00 million). The Company noted, “Due to the significant spike in package volume, gross profit was adversely impacted by extraordinary spending on charter flights and other freight solutions to offset the lack of capacity at traditional airlift capacity are mitigated in the future.”
Operating expenses for the period under review closed at $340.11 million (2019: $340.51 million), in which:
- Selling and promotion totaled $53.89 million (2019: $43.55 million).
- Administrative and general expenses closed at $286.22 million (2019: $296.97 million).
Operating expense for the quarter closed at $111.76 million, versus $87.40 million booked twelves earlier. MailPac noted, “the Company had significantly expand its operating infrastructure to support the new volume levels.”
As such, operating profit for the twelve months period summed to $479.41 million, 61% increase from December 31, 2019 operating profit of $298.32 million. While for the quarter, operating profit closed at $123.42 million (2019: $109.60 million).
Mailpac recorded other income of $7.37 million (2019: $17.57 million) and finance cost of $43.73 million (2019: $15.97 million) for the twelve months ended December 31, 2020.
Consequently, Mailpac booked profit before taxation of $443.05 million (2019: $299.91 million), 48% increase from the prior corresponding period. Profit before taxation for the fourth quarter closed at $104.17 million (2019: $96.78 million).
Taxation credited for the period under review totalled $28,213 versus a tax charge of $10.49 million booked in 2019, as such net profit closed the FY2020 at $443.08 million (2019: $289.42 million). While for the quarter, net profit totalled $104.20 million (2019: $86.29 million).
Consequently, earnings per share (EPS) amounted to $0.18 (2019: EPS of 0.12). For the quarter, EPS closed at $0.04 (2019: $0.03). The number of shares used in this calculation was 2,500,000,000 shares. MAILPAC traded on April 1, 2021 at $3.41 with a corresponding P/E of 19.24 times.
MAILPAC noted, “The company exceeded the 2020 projections outlined in its November 2019 IPO Prospectus by employing a number of strategies to provide better access to online shopping for Jamaicans whose travel and movement were curtailed due to the Covid-19 pandemic.”
Balance Sheet at a Glance:
As at December 31, 2020, total assets closed at $654.39 million, 47% up from $444.85 million booked in December 2019. Notably, the increase in asset base is due to cash and cash equivalents amounting $283.99 million, 167% up from $106.52 million recorded in 2019.
Shareholder’s equity totaled $571.72 million (2019: $353.64 million), resulting in a book value of $0.23 (2019: $0.14).
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