SML reports 14% decrease in three months net profit

May 11, 2021

Stanley Motta Limited (SML), for the three months ended March 31, 2021 booked a 7% increase in revenue to total $119.64 million compared to $112.02 million for the same period in 2020. The Company mentioned that, “the increase is attributable to the depreciation of the Jamaican dollar which moved from an average of J$136:US$1 as at 31st March 2020 to J$147.86:US$1 at 31st March 2021.”

Other operating income increased to $1.93 million relative to the $5000 that was documented the quarter in 2020.

Administrative expenses amounted to $55.44 million (2020: $36.07 million). The Company noted this was attributed, “to a significant FX loss of J$9.4M arising from the revaluation of the DBJ loan. There were also repair and maintenance related cost amounting to J$8.5M.”

This translated into 13% decrease in operating profit to $66.14 million when compared to last year’s $75.96 million.

Finance costs of $10.81 million was recorded for the period under review (2020: $10.36 million). As such, profit before tax decreased to $55.33 million for the quarter ended March 2021 relative to $65.60 million documented in the same period last year.

Taxation decreased 57% to close at $1.03 million (2020: $2.39 million) for the three months ended March 2021.

Consequently, net profit for the quarter totalled $54.30 million (2020: $63.21 million).

Total comprehensive income of $109.58 million was reported for the period versus $82.15 million recorded in the prior corresponding period.

Earnings per share (EPS) for the period totalled $0.07 (2020: $0.08). The trailing twelve months EPS amounted to $1.11. The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on May 11, 2021 at $5.86 with a corresponding P/E of 5.29 times.

Balance Sheet at a glance:

As at March 31, 2021, total assets amounted to $5.85 billion, up from $4.97 billion booked twelve months earlier. The increase in total assets was mainly due to the increase in ‘Investment Property’ which closed at $5.54 billion (2020: $4.81 billion) resulting in a 15% or $727.91 million year over year as well as a 99% increase in Cash and Cash Equivalents to $168.34 million (2020: $84.61 million). The Company noted that, “we have substantially reduced our Receivables as any rent deferment offered because of the Covid-19 pandemic has now been paid back in full, which has in turn positively impacted our holding of cash.”

Shareholders’ Equity of $4.78 billion (2020: $4.08 billion) which resulted in a book value per share of $6.31 (2020: $5.39).


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