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).


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