Company Results

Profits continue to send mixed signals

April 21, 2024 by IC Insider.com

Early profit results for the first 2024 quarter show some positives, with the Montego Bay-based Knutsford Express reporting b revenue growth and profit for the quarter and the nine months to February, followed by positive results for AMG Packaging and Express Catering, but there were also some disappointing ones.

Knutsford Express

The directors of Knutsford Express stated that “strong and steady demand for our courier services complemented our passenger services have combined in delivering year to date profit of $268 million, up 27.1 percent from $211 million at the end of February 2023. We, therefore, recorded a 20.9 percent growth in our total revenue in this quarter moving to $565 million from $468 million in the comparative period in 2023. Similarly, our nine-month year-to-date revenue has increased by 19.5 percent from $1,281 million in 2023 to $1,530 million in 2024.”
Innovative Energy, formerly Ciboney reported no revenues in the February quarter and a loss of $4.4 million with the year to date, ending with $500,000 in income and a loss of $7.8 million.
AMG Packaging grew profit by 79 percent to $32 million from $18 million in 2023, better than the 72 percent rise in the first quarter. For the six months to February, profit was up by 79 percent to $84 million from $47 million in 2023.
Revenues climbed from US$6 million to US$7 million at Express Catering, up 17.6 percent in the quarter and increased by 23 percent from US$15 million to US$18.7 million, delivering a profit of US$2 million for the year to date and US$1 million for the latest quarter, compared with US$1.9 million for the nine months in 2023 and $1.15 million in the February 2023 quarter. Ian Dear, the company’s CEO confirmed that added cost in the third quarter would have been associated with new restaurants opened close to the quarter as such, some of the cost would not be fully covered by revenues.
The revenue at Margaritaville (Turks) rose just 5 percent to US$5.25 million for the current year, compared to US$4.98 million for the same period last year, with a net profit of US$521,909, earnings per share of 0.773 US cents compared with the similar period of 2023, with a net profit of US$1.18 million which includes non-recurring gains of US$658,000 for EPS of 1.749 US cents.
For the third quarter, revenues fell to US$1.9 million from US$2.2 million in 2023, delivering a profit of US$222,174 versus US$725,000 in 2023 including one time income of US$340,000.
Sygnus Real Estate Finance fell by 43 percent in the February quarter from $67 million in 2023 to $44 million in 2024. For six months revenues reached $88 million down 38 percent from $142 million in the prior year. The company incurred a loss of $187 million in the 2024 second quarter 45 percent worse than the $129 million and for the six months, a loss of $320 million was incurred marginally more than $302 million in 2023.

Paramount Trading is expanding into Chlorine and bleach processing.

Paramount Trading reported reduced revenues and profit for the third quarter and the nine months. Revenues in the February quarter declined 8.5 percent from $438 million in 2023 to $401 million in 2024. For the nine months, revenues fell 23 percent from $1.63 billion down to $1.266 billion with profits coming in at 40 percent lower at $18 million for the quarter from $30 million in 2023 and 44 percent to $100 million for the nine months of February this year from $179 million in the previous year.
One On One Educational Services reported revenues of $57 million in the February quarter down 12 percent from $73 million in 2023 and fell 27 percent to $111 million for the six months to February from $153 million in 2023.
A loss of $20 million million was incurred in the February quarter down from a profit of $6 million in 2023 and a loss of $41 million for the six months, down from a profit of $17 million in 2023 for the 6 months.

Filed Under: Company News, Company Results Tagged With: AMG Packaging, Daily Trading, Emerging market stock, Emerging markets, Express Catering, First Rock Real Estate, Jamaica Stock Exchange, Jamaican stocks, junior market, Knutsford Express, Margaritaville, ONE on ONE Educational, Paramount Trading, Profit results, Trading Activity

Profit bolts 79% at AMG

April 18, 2024 by IC Insider.com

Profit continued to surge at AMG Packaging in the February quarter, up 79 percent to $32 million from $18 million in 2023, the performance is better than the 72 percent rise in the first quarter. For the six months to February, profit was also up 79 percent to $84 million from $47 million in 2023.
Sale revenues rose by just one percent for the quarter, to $250 million from $247 million and popped 4 percent for the year to date, to $522 million from $501 million in 2023.
Two main features are at play resulting in improved performance. The company installed new multi-coloured machinery in early 2023 that measures and determine the cut for boxes which has helped in cutting operating costs as it is far more efficient than the original ones. Secondly, the price of paper declined in 2023 from 2022 and has carried over into the current year, the result is that raw material costs declined to 41 percent of revenues in the second quarter from 53 percent in 2023.
Historically, profit was stuck for years between $37 million and $62 million from 2017 to 2021 . In 2022 profit jumped to $105 million following a revenues surge of 41 percent over 2021 but fell back to $89 million in 2023 with some one-off cost, helping in pushing the profit down, otherwise it would have exceeded that of 2022. ICInsider.com projects profit to come in around $225 million for this fiscal year ending in August.
Manufacturing costs declined by 12 percent in the February quarter to $154 million from $175 million and by 9 percent year to date, to $325 million from $356 million. Gross profit margin rose a significant 36 percent in the quarter to $96 million from $72 million and climbed even more for the half year to 39 percent to $197 million from $145 million in 2024.
Administrative expenses rose 18 percent to $33 million in the quarter and increased 19 percent in the six months to $66 million. Depreciation charges increased by 26 percent to $13.5 million in the quarter, and the half year to $26 million. Finance cost declined in the quarter, to $1.8 million from $2 million in 2024 and from $4.2 million to $3.6 million for the six months.
The operations generated $130 million in Gross cash flow, after paying dividends of $51 million and increased working capital needs, net flows were negative and pulled down the cash on hand from of $297 million in 2023 to $252 million.
Current assets ended the period at $651 million and include trade and other receivables of $143 million, up from $123 million in 2023, and cash and bank balances of $252 million, representing an increase over $144 million in 2023. Inventories rose a bit from $240 million to $255 million. Current liabilities at the half way marker amount to $152 million. Net current assets ended the period at $500 million.
At the end of February, shareholders’ equity amounts to $1.29 billion with long term borrowings of just at $66 million and short term at $19 million.
Earnings per share for the quarter amounts to 6 cents and 14 cents for the half year. IC Insider.com computation projects earnings around 45 cents per share for the current fiscal year, with a PE of 8 times the current year’s earnings based on the price of $3.59 the stock traded at on the Jamaica Stock Exchange Junior Market. Net asset value ended the period at $2.53 with the stock selling at a premium of 41 percent to book value.

Filed Under: Buy Rated, Company News, Company Results Tagged With: AMG, Emerging market stock, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, Trading Activity

Profit rise at Sagicor Financial

April 9, 2024 by IC Insider.com

Sagicor Financial, the Toronto Stock Exchange listed parent of Sagicor Group Jamaica announced results for the fourth quarter and full year ended December 2023 with rising revenues and profit.
Net profit attributable to shareholders amounts to $532 million for 2023 and includes a $448.3 million gain on the acquisition of the ivari operations up from a loss of $164 in 2022. All figures are in US dollars unless otherwise stated.
Net income to shareholders, excluding the one time gain and transaction costs of the above acquisition, amounts to $99 million for 2023
New business CSM brough in $137 million for 2023, down from $187 million in 2022. Contractual service margin (“CSM”): CSM represents an estimate of unearned future profits. For new business issued under IFRS 4, the estimated profit or loss over the term of the contract is recognized in income at the date of issue. Expected future profits on new business under IFRS 17 are deferred and recorded in the CSM and amortized into income as insurance services are provided over the contract term. Under IFRS 17, expected losses on new business are recognized at the date of issue.
Andre Mousseau, President and Chief Executive Officer, in commenting on the results, stated: “2023 was a monumental year for Sagicor. Our team worked tirelessly to complete the conversion to IFRS 17, bring ivari into our corporate structure, and regain our investment grade status while driving forward on other initiatives that will drive value in the years to come.”
Mousseau continued, “We are pleased to set forth our more precise guidance for 2024 of $90 million to $105 million of core net income to shareholders”.
The group comprises four major subsidiaries. Sagicor Canada this segment came into being during the December quarter and delivered revenues of $1.13 billion in the quarter and for the year, with net income to shareholders of $122 million. Sagicor Life USA generated revenues of $253 million in the quarter and $578 for the year, with a loss of $23 million in the quarter and a profit of $41 million for the year versus $15 million in the December 2022 quarter and a loss of $122 million for the year.
Sagicor Jamaica produced revenues in the final quarter of $283 million and a profit of $17 million versus $31 million in 2022 and revenues of $958 million for the year and profit of $50 million compared with $29 million in 2022. Sagicor Life generated revenues in the December quarter of $202 million and $751 million for the year, compared with $162 million for the final quarter of 2022 and $655 for the full year. In the December 2023 quarter, the Eastern Caribbean subsidiary reported a loss of $31 million compared with a profit of $47 million in 2022 and for the full year, a loss of $13 million for 2023 and a profit of $37 million in 2022.
The profit results for 2023 along with the gains from the acquisition of ivari pushed Shareholders’ equity to $971 million, up 119 percent over the $443 million at the end of 2022, with a book value per share of US$6.88 or C$9.10.

Filed Under: Company News, Company Results Tagged With: Sagicor, Sagicor Financial, Sagicor Group, Toronto Stock Exchange

No rewards for Purity’s minority shareholders

April 9, 2024 by IC Insider.com

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After just over 11 years of listing on the Junior Market of the Jamaica Stock Exchange shareholders of Consolidated Bakeries are yet to see any meaningful returns from their $1.88 per share investment in the company, with the price now hovering at just over $2 and no dividend payment during the period, the situation is made worse with the company granting heft salary increases, with no increase in profit for 2023.
In their most recent financial report with revenues rising nearly 11 percent a gross profit jumped by $57 million to $594 million, only the majority of owners benefitted from that improvement. Management paid out the increase in gross profit to themselves and other workers in 2023. Minority shareholders received no benefit.
Management remuneration for directors climbed by nearly $6 or 27 percent to $26.6 million from $21 million. Salaries and related expenses included in direct manufacturing cost, jumped a staggering 40 percent or $42 million to $146 million from $104 million in 2022, this was the major factor that gross profit was not higher.
Salaries for selling and distribution rose by $21 million or 19 percent to $128 million from $107 million in 2022. Surprisingly, administrative salaries and related expenses remained flat at $103 million. In total, salaries rose by $70 million, some $13 million more than the increase in gross profit and just $28 million excluding the direct labour cost.
Other income contributed $4.6 million to profit, up from $2.4 million in 2022. Profit after Corporate taxes of $4.3 million for the year, slipped to $13 million from $14 million in 2022, after tax of $3.9 million.
Administrative costs rose only 2.8 percent from $266 million to $274 million but selling and distribution costs jumped a sizeable 21.2 percent to $247 million from $203 million. Depreciation and amortization costs climbed 15.7 percent to $41 million from $36 million. Finance charges rose to $20 million from $16 million in 2022, with borrowings increasing by $67 million during the year which helped in funding addition to fixed assets of $106 million, with equipment accounting for $49 million and motor vehicles $46 million.
Other areas with above average cost increases are Security with a rise of 21.5 percent to $15 million, Insurance up 18.6 percent to $19 million, and rented space jumped 110 percent to $8 million from $3.8 million. Professional fees rose 38.4 percent to $19 million from $14 million and other expenses climbed 33 percent from $17.5 million in 2022 to $23.2 million in 2023.

Consolidated Bakeries – Miss Birdie Easter bun.

Not all items of cost rose. Bank charges declined from $5.7 million to just over $4 million, a drop of 28 percent. Utilities fell 11 percent from $36.7 million to $32.6 million. Repair and maintenance declined by 61 percent to $3 million from $7.6 million.
The operations generated Gross cash flow brought in $58 million but growth in inventories, additions to fixed assets offset by loan inflows and a reduction in payables resulted in a cash deficit of $27 million for the year.
Current assets ended the period at $276 million inclusive of trade and other receivables of $114 million, cash and bank balances of $66 million. Current liabilities ended the period at $242 million, with net current assets ending at just $34 million.
At the end of December, shareholders’ equity amounts to $710 million with loans totalling $253 million up from $187 million in 2022 of which long term borrowings amount to $166 million and short term at $88 million. One loan amounting to $40 million is due to be repaid in full in 2024 and the rest have full repayments dating from 2026 to 2033 with annual payments.
Earnings per share was 6 cents for the year. IC Insider.com computation projects earnings of 30 cents per share for the fiscal year ending December 2024, with a PE of 7 times the current year’s earnings based on the price of $2.19 the stock traded at on the Jamaica Stock Exchange Junior Market. Net asset value ended the period at $3.13 with the stock selling at a steep 30 percent discount to book value.

Filed Under: Company News, Company Results Tagged With: Consolidated Bakeries, Daily Trading, Emerging market stock, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, Purity, Trading Activity

Profit jumps at the Lab as revenues fall

April 8, 2024 by IC Insider.com

Revenues at Limners and Bards declined 11 percent in the January 2024 quarter to $219 million from $240 million in 2023 but a 16 percent decline in cost of sales resulted in gross profit falling by a mere 4 percent to $92 million from $96 million in 2023 and contributed in pretax profit jumping 216 percent to $20 million versus $6.4 million in 2023 before a recovery of $6 million in Impairment recovery on financial assets.
The net results after tax coming at a healthy $26 million sharp jump from just $6 million in 2023, a B 330 percent year over year increase with earnings per share coming in at 3 cents versus 1 cent in 2023. ICInsider.com forecast is for full year earnings of 15 cents per share, even as the advertising market is currently weighted down by soft demand that affects revenues for both production and media business segments.
Helping to boost profit was a 21 percent decline in administrative costs to $62 million from $79 million in the prior year.
Depreciation charges increased marginally to just over $6 million from $6 million in the prior year and finance costs climbed to $2.6 million from $3.5 million in 2023.
The operations delivered gross cash flows of $32 million and ended with Net cash provided by operating activities of $126 million, with accounts receivable contributing $126 million.
Segment results show varying fortunes during the quarter compared to that of the previous year with production generating just $29 million in revenues versus 58 million in the previous year with a gross profit of $10 million down from $29 million in 2023 while the media segment delivered $118 million in revenue down from $135 million in the previous year with profit slipping marginally $17.7 million in 2024 from $18.4 million in the previous year while there was a significant climb 32 percent in the Agency segment to $71.6 million from $54 million in 2023 with gross profit of $61 million up Bly by 37 percent from $44 million in the previous year.
Current assets amounted to $732 million up from $624 million in 2023 with cash and cash equivalent amounting to $469 million up from $327 million in the previous year and current liabilities were $181 million in 2024 versus $140 million in the previous year and long term liabilities amounted to $104 million $102 million in the previous year. Shareholders’ equity ended at $624 million up from 1748 billion in 2024.
In the directors’ report to shareholders, “the company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.
In keeping with the above objective, we “have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law, additionally, pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.”
The stock traded on the Junior Market of the Jamaica Stock Exchange at $1.34, on Friday, with a PE of 9 times projected earnings for 2024 which is below the market average of 12.5.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, Limners & Bards, The Lab

Profit climbs at Desnoes & Geddes

March 26, 2024 by IC Insider.com

Total revenue rose by 16.6 percent to $27.9 billion at the Jamaican based brewers of the world-renowned Red Stripe beer, Desnoes & Geddes in 2022, up from $23.9 billion in 2021 resulting in profit before tax rising by 11.5 percent to $8.3 billion from $7.2 billion and resulted in a 16 percent rise in after tax profit to $6.6 billion from $5.7 billion in the year to December 2021.
Profit in 2022 was negatively affected by increased input cost relative to revenues at 52.85 percent up from 50.54 percent in 2021 for raw materials, consumables and services.
The principal activities of the company comprise the brewing, bottling and distribution of beers, stouts and spirits. In 2022, the company paid dividends of $2.56 per share amounting to $7.2 billion up from $5.5 billion in 2021.
In 2016, the majority of shares were acquired by Heineken Sweden AB, resulting in Heineken International B.V. having an increased control of 95.78 percent. In May 2016, the ownership was transferred from Heineken Sweden AB to Heineken Beverage Switzerland AG.

Filed Under: Company News, Company Results Tagged With: Desnoes and Geddes’, HEINEKEN

60% hike in Scotia Group dividend

March 7, 2024 by IC Insider.com

Scotia Group Falmouth branch

Scotia Group reports a net profit of $3.13 billion for the quarter ending January 2024, down 7 percent from $3.37 billion in January 2023, as credit loss provisions more than doubled to more than $1 billion from $510 million in 2023, with the loan portfolio increasing by 17.4 percent, with a $41 billion addition over the last twelve months to $278 billion and up from $269 billion at the end of October 2023.
According to Management, “Our core loan book continues to perform well with mortgages increasing year over year by 24 percent, consumer loans by 12 percent, credit cards by 12 percent and commercial loans by 17 percent”.
Earnings per share for the quarter ended at $1 and resulted in the dividend payment returning to the bottom of the payout range of 40 to 50 percent, with the Scotia Group’s Board of Directors approving a 60 percent increase in the dividend to 40 cents per stock unit in respect of the first quarter, to be paid on April 17, to stockholders on record as at March 26, up from 25 cents in 2023.

Filed Under: Buy Rated, Company News, Company Results, Dividends

Q2 profit climbs 18% at Lasco Distributors

February 20, 2024 by IC Insider.com

Profit slowed at Lasco Distributors, climbing 18 percent in the third quarter compared the same period in 2022 and 29 percent for the year to December, with profit for the quarter rising to $404 million, from $343 million in the December 2022 quarter, from revenues that grew 8 percent to $7.3 billion from $6.78 billion in 2022. Revenues rose by 11 percent from $19.64 billion for the nine months to December 2022 to $21.9 billion to December 2023, with profits rising a solid 29 percent to $1.2 billion from $930 million in 2022.
Earnings per share for the six months amount to 34 cents, up from 27 cents in the previous year, with the third quarter ending with 11 cents versus 9 cents in 2022. ICInsider.com’s projects earnings of 55 cents per share in the year to March 2024 and 80 cents in 2025, with the stock trading at $4 at a PE of just 7 times 2024 and 5 times 2025 earnings. With the market averaging over 13 times the current year’s earnings, the stock is rated a buy, with good upside price potential.
Other operating income contributed $94.6 million to the quarterly profit in 2023 up from $91 million in 2022 in the December quarter and $206.7 million for the nine months to December, from $161 million in 2022.
Gross profit rose 16 percent in the nine months to $3.96 billion from $3.4 billion in 2022 and grew by 11 percent in the December quarter to $1.32 billion from $1.19 in 2022 with gross profit margin remaining unchanged in the second quarter at 18 percent, but rose to 18 percent in 2023 from 17 percent for the 2022 nine months.

Administrative and other expenses rose 13.6 percent in the third quarter to $909 million from $623 million in the prior year and climbed 11 percent for the year to date, to $2.66 billion from $2.37 billion in 2022. Finance costs rose to $24.7 million in the nine months to December, from just $4 million in 2022.
The last dividend paid to shareholders was 10 cents per share in July 2023.
The company closed the calendar year, with cash and investments of $3.6 billion, with shareholders’ equity of $9.25 billion, with virtually no borrowed funds on hand.

Filed Under: Buy Rated, Company News, Company Results

Profit jumps at Stanley Motta

February 15, 2024 by IC Insider.com

Profit before taxation and gains on the valuation of investment properties for 2023 rose 12.8 percent from $242 million in 2022 to $273 million at Stanley Motta, a real estate owner, with the final quarter increasing 11 percent from $64 million to $71 million in the final quarter of the year.

Stanley Motta 58 Half Way Tree building.

Revenues, primarily comprising rental income rose 6.6 percent for the year to $535 million from $502 million in 2022 and increased 10 percent from $127 million in the December 2022 quarter to $140 million in 2023. Finance cost was $83 million for 2023 and $90 million in 2022 with the final quarter cost down to $22 million from $33 million in 2022, even borrowing cost ballooned to $1.86 billion from $982 million at the end of 2022.
The company expended nearly $1.2 billion on the construction of a 10 story building at 58 Half Way Tree road property to add 84,000 square feet of rentable space within the complex to cost $1.8 billion to be completed in the middle of this year, the 2022 annual report stated. The new building will add around 40 percent to the rented space and generate rental in the order of $200 million to rental income per annum. Finance costs associated with funding the construction will be in the order of $100 million in the early years.
After fair value gains on investment properties of $1.5 billion versus $616 million in 2022 the company ended with net profit of $1.78 billion in 2023 and $849 million in 2022, with the final quarter results being $1.58 billion compared with $675 million in 2022.
Administrative expenses for 2023 remained stable, compared to that in 2022, at $180 million for the year and for the final quarter it rose 10 percent to $33 million from $30 million in 2022.
The company ended the year with shareholders’ equity of $1.9 billion, with cash and equivalent of just 439 million and current liabilities of $231 million.
Earnings per share for the year, was $2.34, compared to $1.12 in 2022. The stock last traded at $7 on the Main market of the Jamaica Stock Exchange and closed on Tuesday with only a handful of offers.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, Jamaican stocks, Stanley Motta, Trading Activity

Flat profit at Wisynco Group

February 13, 2024 by IC Insider.com

Wisynco Group reported flat profits of $1.2 billion, in the December quarter, from revenues that grew 9.3 percent to $13.25 billion from $12.1 billion in 2022, while revenues rose by 12 percent from $24 billion for the half year to December 2022 to $27 billion in the six months to December 2023, with profits rising nearly 11 percent to $2.77 billion from $2.5 billion in 2022.

Other operating and finance income made a solid contribution to profits with the December quarter reporting $228 million up from $144 million in 2022 and for the half year to December $452 million from $287 million in 2022.
Gross profit margin fell in the second quarter to 33.3 percent, down from 34.7 percent for the same quarter last year, with a Gross Profit of $4.4 billion, 4.7 percent greater than the $4.2 billion of the prior year’s second quarter. According to the company’s management, “this key performance indicator was also adversely affected by the production constraints in November and December 2023 which effectively caused a lower absorption of our fixed costs and limited our product mix for optimal shopper takeup.” The half year performance saw a Gross profit of $9.2 billion up 8 percent from $8.5 billion and the gross profit margin slipped to 34.2 percent versus 35.5 percent in 2022.
Selling and distribution expenses for the quarter amounted to $2.6 billion or 13 percent more than the $2.3 billion for the corresponding quarter of the prior year and rose per cent to $5 billion for the half year from $4.4 billion in 2022.

Wata one of Wisynco best known brands

Administrative expenses climbed 14 percent in the second quarter and for the year to date to $502 million for the second quarter from $439 million in 2022 and $1 billion for the half year from $894 million in 2022. Finance costs fell to $17 million in the second quarter from $99 million in 2022 and for the half year, it declined from $249 million to just $21 million.
For the year to December, earnings per share attributable to stockholders of the group was 32 cents for the quarter and 74 cents for the half year, up from 67 cents in 2020. ICInsider.com’s projection is for earnings of $1.80 per share in 2024, with the stock now trading at $22 with a PE of 12.
Since December 2022 the group added $3 billion to fixed assets and now has loans of $3.6 billion, with cash and investments standing at $11.5 billion and shareholders’ equity of $24 billion.
The Company declared a dividend of 23 cents per share payable to shareholders on March 7.