PJAM reports 50% decrease in six months months net profit attributable to shareholders

August 15, 2022
PanJam Investments Limited (PJAM)

For the six months ended June 30, 2022: –

PanJam Investments Limited (PJAM) for the six months ended June 30, 2022, reported a total income of $1.05 billion, 52% down from $2.19 billion booked for the prior year’s corresponding period. Of total income:

    • Other income decreased to $66.08 million relative to $68.66 million in 2021.
    • Loss on investments amounted to $43.56 million compared to a gain on investments of $1.09 billion for the six months ended June 30, 2021.
    • Property income increased marginally by 0.22% to $1.03 billion (2021: $1.028 billion).

PJAM noted, “Last year’s results were heavily influenced by unrealized gains from our portfolio of Jamaican equities, which were largely reversed in the second quarter of 2022 in line with stock and bond prices both locally and globally. Our portfolio composition represents PanJam’s position as longterm investors, while our results reflect only short-term volatility therein.”

Operating expenses amounted to $1.13 billion for the six months ended June 30, 2022 (2021: $867.91 million), 31% more than the amount reported a year prior. PJAM mentioned that this, “increase of 30.8 per cent due mainly to an increase in staff costs related to the recently opened ROK Hotel.”

Impairment recovery for the six months amounted to $4.56 million, 74% down from $17.68 million booked for the comparable period last year.

Consequently, operating loss closed at $75.95 million relative to an operating profit of $1.34 billion recorded in the prior corresponding period.

Finance costs for the period rose by 10%, amounting to $489.20 million compared to the $446.36 million for the comparable period in 2021 due to “Finance costs, for the quarter, increased to $247.8 million (2021: $222.0 million) on higher average interest rates.” according to PJAM.

Share of results of associated companies rose to close the period at $1.8 billion (2021: $1.54 billion). Management highlighted that, “The results of associated companies consist principally of our 30.2% investment in Sagicor. We also hold minority positions in a number of diverse private entities across the adventure tourism, business process outsourcing, hospitality, consumer products, micro-lending and office rental sectors. Our share of results of associated companies for the first six months of 2022 increased by $262.0 million, or 17.0 per cent, compared to the same period in 2021, driven by Sagicor’s results, which grew by 24.6 per cent.”

Profit before taxation closed the period at $1.24 billion, 50% decrease from $2.46 billion booked in the same period last year. Following a taxation charge of $56.59 million relative to a taxation charge of $122.57 million, net profit amounted to $1.18 billion (2021: $2.34 billion).

Net profit attributable to shareholders for the period amounted to $1.17 billion, $1.16 billion less than the $2.33 billion recorded in the prior comparable period.

Total comprehensive loss closed the six months at $2.54 billion versus total comprehensive income of $1.82 billion in the same period last year.

Consequently, earnings per share for the period amounted to $1.10 (2021: $2.19). The twelve month trailing earnings per share is $5.67. The number of shares used in the calculation is 1,066,159,890 units. Notably, PJAM’s stock price closed the trading period on August 12, 2022 at a price of $59.70 with a corresponding P/E of 10.53 times.

Management noted, “Our current economic environment continues to be impacted by geopolitical tensions and ongoing supply chain disruptions. We continue to see markedly higher interest rates and increased inflation, although central banks expect this upward trend to ease in early 2023. While we believe that uncertainty will continue for some time, PanJam’s long-term investment horizon remains both relevant and appropriate to this environment. Our investment strategy has allowed PanJam to survive and thrive, and we are committed to playing our part in Jamaica’s return to its pre-pandemic economic trajectory.”


Balance Sheet at a glance:

As at June 30, 2022, PanJam Investments Limited (PJAM) had assets totalling $64.15 billion, a 0.31% decrease relative to $64.35 billion a year prior. The decrease was as a result of a decrease in ‘Financial assets at amortised cost’ which amounted to $301.75 million (2021: $1.39 billion). ‘Securities purchased under agreements to resell’ also contributed to the decrease amounting to $499.15 million (2021: $2.16 billion).

Shareholders Equity amounted to $48.43 billion (2021: $48.68 billion) with a book value per share of $45.43 (2021: $45.66).



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