August 11, 2020
Mailpac Group Limited (MAILPAC)’s revenue amounted to $730.85 million for the six months ended June 30, 2020. While, for the quarter, revenues closed at $366.07 million.
The Company noted that, “Despite the second quarter traditionally being the slowest in online retail, coupled with the meaningful decline in international shopping in April due to the impact of COVID-19, the Company achieved its highest ever quarterly revenue. Profitability also followed suit as it outperformed that of ‘Q4 peak season’ in 2019.”
Cost of sales totalled $386.97 million which resulted in gross profit of $343.88 million. Gross profit for the quarter amounted to $160.57 million.
Operating expenses for the period under review closed at $144.77 million, in which:
Selling and promotion totaled $19.50 million
Administrative and general expenses closed at $125.27 million
Management noted that, “this comprised mostly of COVID-19 related reductions in staff costs, advertising expenses, and store operating expenses.”
As such, operating profit for the six months period summed to $199.11 million while for the quarter, operating profit closed at $91.92 million.
Mailpac recorded other income of $10.26 million, while finance cost for the six months totaled $19.63 million.
Consequently, Mailpac booked profit before taxation of $189.74 million, while for the quarter, profit before taxation closed at $87.83 million.
No taxes were incurred, as such net profit closed the six months period at $189.74 million. As for the quarter, net profit totaled $87.83 million.
Mailpac noted, “We are encouraged by the performance of the Company in its second quarter as we navigated through the adverse impact of COVID-19 on our international shopping business. More specifically, the amalgamation of our two business lines, Mailpac Services and Mailpac Local, proved to be a tremendous diversification tool as intended. Though we saw a short term decline in the international business where customers typically buy what they ‘want’, the local business saw a tremendous bump as consumers used our unique platform to acquire what they ‘need’ (household and office supplies in the midst of limitations on movement and social interaction).”
Consequently, earnings per share (EPS) amounted to $0.08 for the six months ended June 2020. For the quarter, EPS closed at $0.04. The number of shares used in this calculation was 2,500,000,000 shares. MAILPAC traded on August 10, 2020 at $2.14.
MAILPAC noted, “Additionally, we are currently exploring a number of strategic initiatives to serve a broader base of customers and have deeper share of wallet with our current ones. As we navigate through the challenges of COVID-19, we are positioning ourselves better for the opportunity it brings for ecommerce.”
Balance Sheet at a Glance:
As at June 30, 2020, total assets closed at $616.22 million. Notably, cash and cash equivalents totaled $276.64 million and intangible assets amounted to $243.20 million as at June 30, 2020.
Shareholder’s equity totaled $543.38 million resulting in a book value of $0.22.
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
