November 14, 2023
Pan Jamaica Group Limited (PJAM) for the nine months ended September 30, 2023, reported a 1037% increase in Gross operating revenue totalling $19.37 billion compared to $1.70 billion in the corresponding period last year. Gross operating revenue for the third quarter had a 1154% increase to close at $9.40 billion compared to $749.08 million for the comparable quarter of 2022.
Cost of operating revenue amounted to $13.38 billion (2022: $871.33 million), this represents an increase of 1435% year over year. Consequently, gross profit increased by 621% to $5.99 billion compared to $831.71 million for the nine months ended September 30, 2022. The company booked gross profit of $2.94 billion for the third quarter versus $373.37 million reported for the similar quarter of 2022.
Other income and expenses, net increased by 261% to close at $834.59 million (2022: $231.02 million). Net Investment expense moved from $377.02 million in 2022 to a net investment income of $102.92 million in the period under review. Selling, administration and other operating expenses for the nine months amounted to $4.87 billion, a 370% increase relative to $1.04 billion reported in 2022.
Share of profits in associates and joint ventures for the nine months amounted to $2.83 billion, relative to loss of $145.21 million reported in 2022. Share of profits in associates and joint ventures for the third quarter amounted to $1.24 billion (2022: loss of $1.15 billion). Profit before finance cost and taxation totalled $4.89 billion (2022: Loss of $496.48 million).
Finance costs totalled $963.72 million, a 28% increase from the corresponding period last year (2022: $754.40 million).
Profit before taxation for the nine months amounted to $3.93 billion relative to a loss of $1.25 billion reported in 2022.
Following the 387% increase in Taxation for the nine months of $518.91 million (2022: $106.62 million), Net profit amounted to $3.41 billion from the net loss of $1.36 billion reported in 2022.
Net profit attributable to parent company shareholders for the nine months amounted to $2.52 billion relative to a loss of $1.37 billion reported in 2022. For the third quarter, Net profit attributable to parent company shareholders was $1.46 billion (2022: Loss of $1.75 billion).
Earnings per share for the nine months amounted to $1.55 (2022: LPS of $0.84), while Earnings per share for the quarter totalled $0.89 (2022: LPS of $1.07). The twelve-month trailing EPS was $5.31, and the number of shares used in these calculations was 1,627,725,023.
Notably, PJAM’S stock price closed the trading period on November 14, 2023, at a price of $45.39 with a corresponding P/E ratio of 8.55x.
PJAM noted, “The period’s result reflects the additional income arising from the amalgamation, partially offset by investment losses and one-off transaction costs.”
Balance Sheet Highlights:
The company’s assets valued $130.26 billion (2022: $54.79 billion). The increase in assets resulted from a 792% jump in ‘property, plant and equipment’ closing at $44.82 billion.
Shareholder’s equity was $74.14 billion (2022: $38.28 billion), representing a book value per share of $45.55 (2022: $23.52).
Disclaimer:
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.