Bright profit spots but cloudy elsewhere

A number of listed companies recently posted results for the second quarter of 2021, with some recording a strong rise in revenues and outstanding profits or lower losses than in 2020 and a few with lower profits.
Fontana had a good year to June and for the June quarter. The Junior Market listed company reported profit that surged 85 percent for the year to June of $512 million, with earnings per share of 41 cents, up from a profit of $277 million in 2020, with revenues rising 14 percent to $5.15 billion from $4.5 billion in 2020.
Blue Power suffered a reversal in fortunes, with a suspension of exports of soaps to Caricom, following a decision of the Jamaica Government to stop issuing Certificates of Origin for soaps manufactured in Jamaica, using imported soap noodles.
For the quarter to July, total revenues fell 23 percent from $150 million generated in 2020 to $116 million, leading to profits from operations dropping 62 percent to $8 million, from $21 million in the previous year, but gains on sales of investments of $26 million and other income, resulted in after tax profit of $46 million.
Jamaica Broilers posted revenues that surged 32 percent to $17.6 billion from $12.5 billion in 2020 for the first quarter to July 2021 but profit of $275 million dropped 28 percent from $383 million in 2020, as the Jamaican and Haitian segments posted lower profits for the quarter as the USA segment enjoyed a 84 percent jump.
Revenues at KLE Group recovered from just $7.8 million in the June quarter in 2020 to $38 million this year, with the half year returning revenues of $73 million versus $80.5 million in 2020, with losses showing slight improvement to $18 million for the quarter from $24.6 million in 2020 and from a loss of $43.7 million in 2020 half year to $40 million in 2021.

Scotia Group

Revenues at Lumber Depot increased 16 percent to $420 million in the  July quarter, this year, from $361 million in 2020, helping to drive profits 140 percent higher to $71.8 million, from $29.9 million in 2020. The strong increase resulted from a surge in gross profit margin from 18.7 percent in 2020 to 24.6 percent in the 2021 July quarter and contributed $26 million to the $42 million of increased profit.
Scotia Group reported a profit of $2.8 billion, an increase of 81 percent over the depressed 2020 third quarter and slightly more than the $2.7 billion generated in the April quarter. Profit for the nine months jumped 31 percent from $5.6 billion to $7.3 billion as expected credit loss provision fell sharply from $5.3 billion in 2020 to $1.99 billion for the nine months to July, thus negating a fall in interest income and increased operating expenses and taxation.

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