August 15, 2023
Spur Tree Spices Jamaica Limited (SPURTREE) for the six months ended June 30, 2023, reported a 51% increase in turnover totalling $661.90 million compared to $438.86 million in the corresponding period last year. Turnover for the second quarter had a 38% increase to close at $278.22 million compared to $201.73 million for the comparable quarter of 2022.
Cost of sales amounted to $468.27 million (2022: $275.63 million), this represents an increase of 70% year over year. Consequently, gross profit increased by 19% to $193.63 million compared to $163.23 million for the six months ended June 30, 2022. The company booked gross profit of $69.45 million for the second quarter versus $74.19 million reported for the similar quarter of 2022.
Other operating income increased by 43% to close at $3.22 million (2022: $2.24 million), while administrative and other expenses increased by 85% from $73.45 million in 2022 to $135.73 million in the period under review. As a result, operating profit for the six months ended June 30, 2023, amounted to $61.11 million, a 33% decrease relative to $91.44 million reported in 2022.
Finance costs for the six months amounted to $20.92 million, an 846% decrease relative to $2.21 million reported in 2022. Finance costs for the second quarter amounted to $10.53 million (2022: $1.08 million). Profit before tax totalled $40.19 million, a 55% decrease from the corresponding period last year (2022: $89.23 million).
Taxation for the six months amounted to $12,000 relative to tax credit of $20,000 reported in 2022. As a result, net income for the six months had a 55% decrease to reach $40.18 million (2022: $89.25 million).
Net income attributable to owners of the company for the six months amounted to $43.55 million, a 51% decrease from the $89.25 million reported in 2022. For the second quarter, net income attributable to owners of the company was $3.04 million (2022: $38.45 million).
Earnings per share (EPS) for the six months amounted to $0.03 (2022: $0.05), while EPS for the quarter totaled $0.002 (2022: $0.02). The twelve-month trailing EPS was $0.04 and the number of shares used in these calculations was 1,676,959,244.
Notably, SPURTREE’s stock price closed the trading period on August 14, 2023 at a price of $2.16 with a corresponding P/E ratio of 50.94x.
Balance Sheet Highlights:
The company’s assets totalled $1.54 billion (2022: $802.67 million). This increase was largely due to intangible assets, which grew 1544% from $11.39 million in 2022 to $187.29 million in 2023.
Shareholder’s equity was $752.10 million (2022: $710.34 million), representing a book value per share of $0.45 (2022: $0.42).
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