November 13, 2023
MAILPAC Group Limited (MAILPAC) for the nine month ended September 30, 2023 reported a 1% decrease in Revenue totaling $1.20 billion compared to $1.22 billion in the corresponding period last year. Revenue for the third quarter had a 3% decrease to close at $400.33 million compared to $413.61 million for the comparable quarter of 2022.
Cost of Sales amounted to $612.63 million (2022: $628.90 million), this represents a decrease of 3% year over year. Consequently, gross profit increased by 0.1% to $591.86 million compared to $591.46 million for the nine month ended September 30, 2022. The company booked gross profit of $199.49 million for the third quarter versus $207.35 million reported for the similar quarter of 2022.
Administrative and general expenses increased by 5% to close at $299.38 million (2022: $286.38 million), while Selling and promotion costs decreased by 7% from $48.93 million in 2022 to $45.70 million in the period under review. As a result, total expenses for the nine month ended September 30, 2023 amounted to $345.08 million, a 3% increase relative to $335.32 million reported in 2022.
Operating profit for the nine month ended September 30, 2023, amounted to $246.79 million, a 4% decrease relative to $256.14 million reported in 2022. Operating profit for the third quarter amounted to $82.69 million (2022: $93.87 million). Finance and policy cost totalled $45.01 million a 10% decrease from the corresponding period last year. (2022: $49.80 million).
Profit Before Taxation for the nine month ended September 30, 2023, amounted to $203.19 million, a 6% decrease relative to $215.33 million reported in 2022. Profit Before Taxation for the third quarter amounted to $68.62 million (2022: $77.70 million).
There was no taxation for the nine-month ended September 30, 2023. Net Profit for the nine month amounted to $203.19 million, a 6% decrease from the $215.33 million reported in 2022. For the third quarter, Net Profit was $68.62 million (2022: $77.70 million).
Consequently, Earnings Per Share for the nine-month amounted to $0.08 (2022: EPS of $0.09), while Earnings Per Share for the quarter totaled $0.03 (2022: EPS of $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 November 12, 2023 at a price of $1.88 with a corresponding P/E ratio of 15.88x.
Balance Sheet Highlights
As at September 30, 2023, total assets closed at $602.00 million, 11% lower than the $674.91 million booked for September 2022. Notably, ‘cash and cash equivalents’ was the main contributor to the decrease amounting to $137.50 million (2022: $207.62 million).
Shareholder’s equity was $505.78 million (2022: $584.88 million), representing a book value per share of $0.20 (2022: $0.23).
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.