April 3, 2023
Mailpac Group Limited (MAILPAC)
Audited financials for the year ended December 31, 2022:
Mailpac Group Limited (MAILPAC)’s revenue amounted to $1.69 billion for the twelve months ended December 31, 2022, 7.32% less than $1.82 billion booked for 2021 year-end. While, for the quarter, revenues closed at $466.20 million (2021: $501.73 million), 7.08% lower than the corresponding quarter. MAILPAC noted that “while overall profitability was down relative to the corresponding quarter in 2021, we remain encouraged by the continued strong performance of the Company in a year that saw a significant contraction in global online shopping.”
Operating expenses for the period under review closed at $462.10 million (2021: $442.24 million), reflecting a 4.49% increase. Operating expense for the quarter closed at $126.78 million, versus $129.82 million booked twelve months earlier. This decline during the quarter was attributed to, “the Company reduced its promotions expenses by making more efficient use of its marketing budget,” as per MAILPAC.
As such, operating profit for the twelve months period amounted to $359.04 million, a 20% decrease from the $448.96 million reported as of December 31, 2021. While for the quarter, operating profit closed at $102.90 million (2021: $124.71 million).
Mailpac recorded other income of $11.62 million (2021: $7.05 million), and a finance cost of $62.42 million (2021: $57.37 million) for the twelve months ended December 31, 2022.
Consequently, Mailpac booked profit before taxation of $308.24 million (2021: $398.64 million), 23% down from the prior corresponding period. Profit before taxation for the fourth quarter closed at $92.91 million (2021: $114.58 million).
Taxation for the period under review, amounted to $201,252 relative to $800,977 booked in 2021, as such net profit closed the FY2022 at $308.04 million, 23% down from the $397.84 million reported for 2021. While for the quarter, net profit totalled $92.71 million, 19% down from $114.58 million booked the corresponded quarter.
Consequently, earnings per share (EPS) amounted to $0.12 (2021: $0.16). For the quarter, EPS closed at $0.04 (2021: $0.05). The number of shares used in this calculation was 2,500,000,000 shares. MAILPAC traded on March 31, 2023 at $1.96 with a corresponding P/E of 15.91 times.
Management noted, “the Company continued to lead the ever-growing ecommerce market in innovation and service, including the launch of our digital barrel packing service (PYB!), resulting in strong financial performance and cash-flow generation, including a record $425.0 million in dividends paid to shareholders.”
Balance Sheet at a Glance:
As at December 31, 2022, total assets closed at $687.71 million, 17% down from $823.85 million booked in December 2021. Notably, the decrease in asset base is due to cash and cash equivalents amounting $209.48 million, 42% down from $363.81 million recorded in 2021.
Shareholder’s equity totaled $577.59 million (2021: $694.55 million), resulting in a book value of $0.23 (2021: $0.28).
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