MailPac reports first quarter net profit of $56.31 million

May 12, 2022

MailPac Group Limited (MAILPAC)’s revenue amounted to $398.46 million for the three months ended March 31, 2022, relative to $470.01 million booked in 2021; while cost of sales totalled $215.64 million (2021: $244.87 million). As such gross profit summed to $182.83 million for the period under review, 19% lower than $225.14 million booked for the corresponding quarter.

Administrative and general expenses equalled $90.43 million (2021: $91.49 million) for the three months, while selling and promotion costs totalled $24.50 million (2021: $16.91 million). Thus, operating expenses for the quarter amounted to $114.93 million, 6% up from $108.41 million booked in 2021.

Consequently, the Company booked an operating profit of $67.90 million, a 42% decline from the $116.73 million recorded twelve months earlier.

Other income amounted to $7.11 million (2021: $529,521) for the quarter ended March 31, 2022.

Finance and policy costs for the quarter totalled to $18.69 million, up from $13.90 million booked in the prior comparable period. Consequently, MAILPAC booked profit before taxation of $56.31 million for the three months ended March 31, 2022, relative to $103.36 million booked for the previous corresponding period.

There was no taxation incurred due to the 100% income tax remission under the rules of the Jamaica Junior Stock Exchange, thus resulting in net profit of $56.31 million (2021: $103.36 million) for the three months ended March 31, 2022.

Consequently, earnings per share (EPS) declined to $0.023 from $0.041 recorded for the quarter ended March 31, 2021. The twelve months trailing EPS was $0.14. The number of shares used in this calculation was 2,500,000,000 shares. MAILPAC closed the trading period on May 11, 2022 at $3.00 with a corresponding P/E of 21.25 times.

Balance Sheet at a glance:

As at March 31, 2022, total assets closed at $873.61 million, 40% greater than $623.58 million documented twelve months earlier. This is mainly as a result of an increase in ‘Property, plant and equipment’ amounting to $100.29 million (2021: $69.58 million) and ‘Cash and Cash Equivalents’ which amounted to $445.31 million (2021: $248.43 million) as at March 31, 2022.

Shareholders’ equity totalled $750.86 million, 43% up from $525.08 million booked in 2021 resulting in a book value of $0.30 (2021: $0.21).

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 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.

2022-05-12T11:08:57-05:00