MAILPAC reports 67% increase in nine months net profit

November 10, 2020

Mailpac Group Limited (MAILPAC)’s revenue amounted to $1.21 billion for the nine months ended September 30, 2020, 42% greater than $851.44 million booked twelve months earlier. While, for the quarter, revenues closed at $476.54 million.

Cost of sales totalled $623.04 million (2019: $409.61 million). As a result, gross profit amounted to $584.35 million (2019: $441.83 million), 32% higher than the previous comparable period. Gross profit for the third quarter amounted to $240.46 million.

Operating expenses for the period under review closed at $228.36 million (2019: $253.11 million), in which:

Selling and promotion totaled $29.75 million (2019: $28.80 million).

Administrative and general expenses closed at $198.61 million (2019: $224.31 million).

As such, operating profit for the nine months period summed to $355.99 million, 89% increase from September 30, 2019 operating profit of $188.71 million. While for the quarter, operating profit closed at $156.88 million.

Mailpac recorded other income of $13.41 million (2019: $17.57 million) and finance cost of $30.52 million (2019: $3.15 million) for the nine months ended September 30, 2020.

Consequently, Mailpac booked profit before taxation of $338.88 million (2019: $203.14 million), 67% increase from the prior corresponding period. Profit before taxation for the third quarter closed at $149.14 million.

No taxes were incurred, as such net profit closed the nine months period at $338.88 million (2019: $203.14 million). While for the quarter, net profit totaled $149.14 million.

Consequently, earnings per share (EPS) amounted to $0.14 (2019: EPS of 0.08). For the quarter, EPS closed at $0.06. The trailing twelve months EPS amounted to $0.17. The number of shares used in this calculation was 2,500,000,000 shares. MAILPAC traded on November 9, 2020 at $2.00.

MAILPAC noted, “We are encourage by the performance of the Company in its third quarter as Mailpac rebound from the adverse impact of COVID-19 in the second quarter. More importantly, we are excited about the prospects of Mailpac as the awareness around our platform continues to grow and we continue to invest in ways to better engage and serve our customers.”

Management further stated that they are please with the company leading performance in the growing ecommerce market in innovation and service. Also, it was acknowledge that the company benefit from the impact of the pandemic, alongside the adverse effects. However management stated, “Mailpac remains focused on highest level of ecommerce solutions and service in the industry and managing all elements of our business that remain in out control.”

 Balance Sheet at a Glance:

As at September 30, 2020, total assets closed at $662.10 million. Notably, cash and cash equivalents totaled $309.70 million and intangible assets amounted to $242.74 million as at September 30, 2020.

Shareholder’s equity totaled $467.52 million resulting in a book value of $0.19.


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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.