SPURTREE reports 6% decrease in Q1 net profit

May 26, 2023

In their first quarter of 2023, which ended on March 31, 2023, SPURTREE reported a 62% increase in sales revenue to $383.68 million from the $237.13 million reported in 2022. In their quarterly report, the company stated, “Another key element of our core strategy continues to be increasing our footprint by creating new customer segments and to capitalise on new and emerging opportunities in both the local and international markets which has also contributed to the additional revenue for the period.”

Cost of sales grew by 75% in Q1 of FY23 to $259.50 million (2022: $148.09 million). Gross profit increased year-on-year for the three-month period by 39%, from $89.04 million in 2022 to $124.18 million in Q1 of FY2023.

In Q1 of FY2023, Administrative & other expenses grew by 77% to $66.76 million, up from $37.68 million booked in Q1 of FY 2022.

Operating profit for the year grew by 12% to $58.15 million (2022: $52.14 million).

Finance costs amounted to $10.39 million (2022: $1.13 million).

SPURTREE reported a Net profit of $47.84 million for the first quarter relative to $50.81 million recorded for the corresponding period in 2022.

EPS for the three months ended March 31, 2023 totaled $0.02 relative to $0.03 per share in 2022. The trailing twelve months EPS amounted to $0.06. The number of shares used in the calculation was 1,676,959,244 units. Notably, SPURTREE’s stock price closed the trading period on May 25, 2023 at a price of J$2.49 with a corresponding P/E ratio of 39.20 times.

Balance Sheet Highlights:  

The Company, at March 31, 2023, had total assets worth $1.56 billion (2022: $766.91 million). This was primarily due to ‘Property, plant, and equipment’ which increased by 321% to $704.32 million (2022: $167.23 million).

Total Stockholders’ Equity as at March 31, 2023, closed at $753.69 million (2022: $671.89 million). As at March 31, 2023, SPURTREE had a book value of $0.45 (2022: $0.40).


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