SML reports 31% increase in nine months net profit

November 16, 2021

Stanley Motta Limited (SML) for the nine months ended September 30, 2021, booked a 6% increase in revenue to total $365.40 million compared to $344 million for the same period in 2020. For the third quarter revenue increased 3% to $121.37 million in 2021 compared to $117.82 million the previous year. SML noted, “these increases are mainly attributed to the devaluation of the Jamaica dollar (J$) which moved from an average of J$143.95 to J$149.34:US$1 over the period, September 2020 to September 2021.”

Administrative expenses amounted to $142.50 million (2020: $163.17 million), while other operating income totalled $6.32 million (2020: $5.27 million). It was noted that the decrease in expenses was due to lower foreign exchange loss (FX loss) of J$7.9M for the YTD period compared to a loss of J$48.7M for the same period of the prior year.

This translated into operating profit increasing to $229.23 million when compared to last period’s $186.09 million. For the quarter, operating profit went up by 39% to close the period at $94.60 million (2020: $67.95 million).

Finance costs of $32.89 million (2020: 32.66 million) was recorded for the period. For the quarter, finance cost amounted to $10.93 million (2020: $11.07 million).

As such, profit before tax fell to $196.34 million for the period ended September 30, 2021 relative to $153.43 million in 2020. As for the quarter, profit before tax closed the period at $83.67 million versus $56.88 million in the prior corresponding quarter.

Net profit for the period totalled $193.49 million (2020: $148.18 million) after incurring taxes of $2.85 million (2020: $5.24 million). While for the quarter, net profit of $82.85 million was recorded (2020: $55.15 million).

Total comprehensive income of $259.66 million (2020: $224.06 million) while for the quarter, SML reported total comprehensive income of $100.93 million in 2021 relative to $80.79 million in 2020.

Earnings per share (EPS) for the period totalled $0.26 (2020: $0.20). EPS for the third quarter amounted to $0.11 (2020: $0.07). The twelve months trailing EPS amounted to $1.18. 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, 2021, at $5.50, with a corresponding P/E of 4.66 times.

Balance Sheet at a glance:

As at September 30, 2021, total assets amounted to $5.84 billion, up from the balance of $5.08 billion in 2020. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to $5.58 billion in 2021 from $4.89 billion in 2020. ‘Right of use Assets’ also contributed to the growth by closing at $104.62 million (2020: nil).

Shareholders’ Equity of $4.86 billion was reported (2020: $4.18 billion) which resulted in a book value per share of $6.42 (2020: $5.52).


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.