SML reports 31% increase in six months net profit

Stanley Motta Limited  (SML) for the Six months ended June 30, 2023 reported a 5% increase in Revenue totaling $261.90 million compared to $250.08 million in the corresponding period last year. Revenue for the Second quarter had a 4% increase to close at $134.67 million compared to $129.27 million for the comparable quarter of 2022. Management noted, “The improvement in income was attributable to increase in rental rates upon the renewal of lease agreements with our tenants and also the depreciation noted in the Jamaican dollar to its United States dollar counterpart.”

Other operating income increased by 108% to $21.54 million compared to $10.35 million for the Six months ended June 30, 2022. The company booked other operating income of $21.31 million for the Second quarter versus $2.01 million reported for the similar quarter of 2022.

Administrative Expenses decreased by 13% to close at $94.48 million (2022: $108.66 million), consequently to lower electricity expenses and lower repairs and maintenance expenditure incurred during the period under review.

Operating Profit increased by 24% from $151.77 million in 2022 to $188.95 million in the period under review.

Finance costs for the Six months ended June 30, 2023 amounted to $39.49 million, a 2% increase relative to $38.77 million reported in 2022.

Profit before taxation for the Six months ended June 30, 2023, amounted to $149.46 million, a 32% increase relative to $113.00 million reported in 2022. Profit before taxation for the Second quarter amounted to $82.74 million (2022: $70.91 million). Taxation totalled $4.72 million, an 85% increase from the corresponding period last year (2022: $2.56 million).

Net profit for the Six months ended June 30, 2023, amounted to $144.73 million, a 31% increase relative to $110.45 million reported in 2022. Net profit for the Second quarter amounted to $78.68 million (2022: $69.64 million).

Currency translation difference on net asset of foreign subsidiary for the Six months ended June 30, 2023 grew to reach $4.05 million (2022: loss of $12.79 million). As a result, Total Comprehensive Income for the Six months amounted to $148.79 million, a 52% increase from the $97.66 million reported in 2022. For the Second quarter, Total Comprehensive Income was $82.73 million (2022: $70.80 million).

Consequently, Earnings Per Share for the Six months amounted to $0.19 (2022: EPS: $0.15), while Earnings Per Share for the quarter totaled $0.10 (2022: EPS: $0.09). The twelve-month trailing EPS was $1.16, and the number of shares used in these calculations was 757,828,490.

Notably, SML’s stock price closed the trading period on August 15, 2023 at a price of $4.85 with a corresponding P/E ratio of 4.16x.

Balance Sheet Highlights

The company’s assets totalled $7.69 billion (2022: $6.55 billion). This growth came from a 20% jump in ‘Investment Properties’ totalling $7.48 billion (2022: $6.23 billion).

Shareholder’s equity was $6.23 billion (2022: $5.44 billion), representing a book value per share of $8.22 (2022: $7.18).

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