March 1, 2024
Pan Jamaica Group Limited (PJAM) for the year ended December 31, 2023, reported a 1055% increase in Gross operating revenue totalling $29.00 billion compared to $2.51 billion in the corresponding period last year. Gross operating revenue for the fourth quarter had a 1092% increase to close at $9.63 billion compared to $807.98 million for the comparable quarter of 2022.
Management highlighted, “arising from the amalgamation of the operations of JP Global Holdings Limited with those of the Group — with effect from April 1, 2023 — PJG delivered significantly improved trading results. This was driven by strong performances across the Financial Services, Property & Infrastructure and Global Services trading divisions. The improved operating results were partially offset by significant revaluation losses on a range of non-core investments that are held by the Group, one-off transaction costs associated with the amalgamation and some commercial challenges in the Specialty Food Division”.
Cost of operating revenue amounted to $20.69 billion (2022: $1.14 billion), this represents an increase of 1709% year over year. Consequently, gross profit increased by 508% to $8.31 billion compared to $1.37 billion for the year ended December 31, 2022. The company booked gross profit of $2.32 billion for the fourth quarter versus $535.31 million reported for the similar quarter of 2022.
Other income and expenses, net increased by 45% to close at $868.82 million (2022: $598.72 million). Net Investment expense decreased by 54% from $758.82 million in 2022 to $351.86 million in the period under review. Selling, administration and other operating expenses for the year ended December 31, 2023, amounted to $6.83 billion, a 217% increase relative to $2.15 billion reported in 2022.
Share of profits in associates and joint ventures for the year ended December 31, 2023, amounted to $4.17 billion, a 43% increase relative to $2.91 billion reported in 2022. Share of profits in associates and joint ventures for the fourth quarter amounted to $1.33 billion (2022: $3.06 billion). Profit before finance cost and taxation totalled $6.17 billion an 84% increase from the corresponding period last year. (2022: $3.35 billion).
Finance costs totalled $1.38 billion, a 35% increase from the corresponding period last year (2022: $1.03 billion).
Profit before taxation for the first year ended December 31, 2023, amounted to $4.78 billion, a 106% increase relative to $2.32 billion reported in 2022.
Following taxation charge of $1.06 billion (2022: Taxation credit of $420.63 million), Net profit amounted to $3.72 billion from the $2.74 billion reported in 2022.
Net profit attributable to parent company shareholders for the year ended December 31, 2023, amounted to $2.52 billion, a 7% decrease relative to $2.69 billion reported in 2022. PJAM noted, “The 2022 profit attributable to shareholders of $2.7 billion included a gain on the sale of the Group’s interest in New Castle Company Limited, that was not repeated in 2023”. For the fourth quarter, net loss attributable to parent company shareholders was $5.12 million (2022: Profit of $4.07 billion).
Earnings per share for the year amounted to $1.55 (2022: EPS: $1.66), while Loss per share for the quarter totalled $0.003 (2022: EPS of $2.50). The number of shares used in these calculations was 1,627,725,023.
Notably, PJAM’s stock price closed the trading period on March 1, 2024, at a price of $52.00 with a corresponding P/E ratio of 33.65x.
Balance Sheet Highlights:
The company’s assets totalled $141.45 billion (2022: $58.26 billion). The growth resulted from an 861% jump in ‘Property, plant and equipment’ closing at $51.22 billion.
Shareholder’s equity was $76.00 billion (2022: $42.63 billion), representing a book value per share of $46.69 (2022: $26.19).
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