November 16, 2022
Stanley Motta Limited (SML) for the nine months ended September 30, 2022, booked a 2% increase in revenue to total $373.42 million compared to $365.40 million for the same period in 2021. For the third quarter revenue increased 2% to $123.34 million in 2022 compared to $121.37 million the previous year. SML noted, “these increases are attributable to the depreciation of the Jamaican dollar which moved from an average of J$149.34:US$1 as at 30 September 2021 to J$152.68:US$1 at 30 September 2022.”
Administrative expenses amounted to $149.59 million (2021: $142.50 million), while other operating income totalled $10.38 million (2021: $6.32 million). It was noted that, “the increases are mainly related to a higher FX Loss that is incurred YTD compared to that of a lower loss in prior year. It is important to note that the YTD FX Losses were incurred prior to the refinancing of our USD loan which is now denominated in JMD”.
This translated into operating profit increasing to $234.21 million when compared to last period’s $229.23 million. For the quarter, operating profit went down by 13% to close the period at $82.44 million (2021: $94.60 million).
Finance costs of $56.74 million (2021: 32.89 million) was recorded for the period. For the quarter, finance cost amounted to $17.97 million (2021: $10.93 million).
As such, profit before tax fell to $177.47 million for the period ended September 30, 2022 relative to $196.34 million in 2021. As for the quarter, profit before tax closed the period at $64.46 million versus $83.67 million in the prior corresponding quarter.
Net profit for the period totalled $173.71 million (2021: $193.49 million) after incurring taxes of $3.76 million (2021: $2.85 million). While for the quarter, net profit of $63.26 million was recorded (2021: $82.85 million).
Total comprehensive income of $141.25 million (2021: $259.66 million) while for the quarter, SML reported total comprehensive income of $43.59 million in 2022 relative to $100.93 million in 2021.
Earnings per share (EPS) for the period totalled $0.23 (2021: $0.26). EPS for the third quarter amounted to $0.08 (2021: $0.11). The twelve months trailing EPS amounted to $1.17. The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on November 15, 2022, at $4.85, with a corresponding P/E of 4.14 times.
Balance Sheet at a glance:
As at September 30, 2022, total assets amounted to $6.52 billion, up from the balance of $5.84 billion in 2021. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to $6.21 billion in 2022 from $5.58 billion in 2021. ‘Right of use Assets’ also contributed to the growth by closing at $195.73 million (2021: $104.62 million).
Shareholders’ Equity of $5.44 billion was reported (2021: $4.86 billion) which resulted in a book value per share of $7.18 (2021: $6.42).
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