MAILPAC reports three months net profit of $74.52 million

February 14, 2020

Mailpac Group Limited (Mailpac)’s revenue amounted to $361.73 million for the three months ended December 31, 2019 while cost of sales totalled $180 million for the quarter ended December 31, 2019. As such gross profit summed to $181.72 million for the quarter under review.

Administrative and general expenses equalled $72.23 million for the three months period while selling and promotion totalled $14.74 million. Thus, operating expenses for the quarter amounted to $86.97 million, which “comprised mostly of staff costs, advertising expenses, and store operating expenses,” as noted by Management.  As such, operating profit for the quarter closed at $94.75 million.

Other Income amounted to $845,000 for the quarter under review.

Finance cost for the first quarter totalled to $10.42 million. Consequently, Mailpac booked profit before taxation of $85.19 million for the three months ended December 2019.

Taxation for the three months amounted to $10.67 million, thus resulting in net profit after taxation of $74.52 million for the three months ended December 31, 2019.

Consequently, earnings per share (EPS) amounted to $0.03 for the quarter ended December 31, 2019. The number of shares used in this calculation was 2,500,000,000 shares. MAILPAC traded on February 14, 2020 at $2.00.

Mailpac noted, “The Company continues to lead the ecommerce market and surpassed our IPO projections for the quarter under review on all meaningful metrics. We expect the Company to continue benefitting from the rapid growth of online shopping in Jamaica, as well as its unique shopping tools. These include free returns, its tax-free address and its landed price tool.”

Balance Sheet at a Glance:

As at December 31, 2019, total assets closed at $447.91 million. Notably, cash and cash equivalents totalled $106.52 million as at December 31, 2019. In addition, ‘Intangible Assets’ and ‘Trade and Other Receivables’ closed the period at $244.12 million and $49.31 million, respectively.

Shareholder’s equity totalled $341.88 million resulting in a book value of $0.14. Furthermore, Management noted, “The Company had no long-term debt at the end of the period other than the $12.7 million owed to Norbrook Equity Partners.”

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2020-02-14T20:26:24-05:00