Company Results

Why Scotia Group should be on your buy list

December 17, 2023 by IC Insider.com

Scotia Group recently reported record profits for the year to October, surging 67 percent to $17.23 billion with earnings of $5.54 per share, from revenues that jumped 29 percent to $59.64 billion but based on the reaction of investors the results seem to hardly matter with the stock valued a mere 6.5 times historical earnings compared with a market average of 13, nevertheless, the price hit a yearly high of $36.69 this past Friday as selling has eased considerably, with a few open offers to sell.
The group declared a dividend payable in January of 40 cents for a second consecutive quarter putting it at $1.60 annualised, for a 4.6 percent yield based on the current price. Traditionally the group was committed to paying 40 to 50 percent of profits, this seems to have temporarily changed with the fallout from the Covid-19 pandemic but could return in the near future.
The October quarter saw profit popping a robust 49 percent to $4.4 billion from $2.98 billion in 2022 with revenues rising 24 percent to $15.79 billion from 12.8 billion.
The good news does not end there. ICinsider.com is forecasting earnings of $7.50 for the 2024 fiscal year, with the PE ratio at just 4.8 times earnings making it a stunning buy at the current price of $36, the stock closed at on Friday. The group has many of the qualities for an excellent investment, good management, quality products and services that are in demand, a growing business and increasing profitability and best of all the stock price is well below the market average, with the potential for a major rise in the near term.
While the 2023 performance looks dramatic compared with the pre-Covid period it is more one of recovery as opposed to rapid growth as the increase over 2019 is just 31 percent, representing a 6 percent increase per annum as loans grew 31 percent as well since the end of 2019.
Highlights of the good performance came from interest income, with the quarter jumping 22 percent to $11.6 billion from $9.5 billion in 2022 and by 31 percent for the full year to $40.8 billion with loans disbursed growing a robust 15 percent to $269 billion from $234.7 billion in 2022, after loan loss provisions. Non-accrual loans stood at $4.5 billion compared to $4 billion at the end of October 2022 and represent 1.6 percent of gross loans compared to October 2022 at 1.7 percent.
Also contributing to the growth in interest income was an increase in funds held in cash resources and investments of $343 billion up from $316 billion in 2022.
Insurance revenues fell 5 percent from $1 billion to $961 million in the quarter and surged 49 percent from $1.87 billion to $2.79 billion for the year.

Audrey Tugwell Henry Scotia group’s CEO

Deposits grew 12.7 percent from $399 billion to $449 billion, but the cost of funds grew 138 percent from $580 million in 2022 to $1.38 billion and 207 percent from $152 million in the final quarter to $466 million as interest rates rose sharply following Bank of Jamaica’s increase in the overnight rate in during late 2021 into 2022 and the maintenance of tight liquidity in the system by the country’s central bank.
Amounts set aside for expected credit losses fell 16 percent to $741 million in the quarter from the 2022 quarter’s $880 million and from $3.06 billion for the year in 2022 to $2.4 billion in 2023.
Other Income delivered $3.23 billion in the final quarter of the year versus $2.26 billion in 2022 and for the 2023 year ending October an increase of 22 percent to $16 billion from $13 billion in 2022, with foreign exchange trading and fees and commission dominating.
Operating expenses rose 6 percent in the final quarter to $6.8 billion from $6.39 billion in 2022 and for the twelve months to $27.6 billion up 11.7 percent from $24.7 billion.
The group’s Shareholders’ equity ended the fiscal year at $126.5 billion, increasing by $20 billion, compared to the previous fiscal year, due primarily to re-measurement of defined benefit pension plan assets, lower fair value losses on the investment portfolio, recognition of the insurance finance reserve on the adoption of IFRS 17 and profit generated for the year, partially offset by dividends paid. Total assets grew by $70 billion to $665 billion at October 2023.
ICInsider.com rates the stock a strong buy, with the potential to deliver attractive dividend yields going forward and a huge increase in the stock price in the months ahead. The future appears bright with continued growth in the local economy that sets the stage for more lending. 2024 could well deliver some negatives as the Bank of Jamaica holds interest rates at excessively high levels and ushers in a recession. Additionally, interest rates could start to decline and negatively affect net interest income. Regardless the stock is priced so low currently that most bad news to come if any is more than taken into consideration by the current pricing.

Filed Under: Buy Rated, Company News, Company Results, Feature Stories Tagged With: Bank Of Jamaica, Emerging markets, Emerging Stock, ICInsider BUY RATED, Jamaica Stock Exchange, Jamaican stocks, Scotia Group

NCB profit plunges 56% for 2023 fiscal year

November 23, 2023 by IC Insider.com

Profit at NCB Financial Group plunged a sharp 56 percent to $15.3 billion for the year to September 2023, from $35 billion in 2022. Consolidated net profit attributable to the Group’s stockholders amounts to $7.6 billion, a reduction of 68 percent from $23.9 billion the previous year.
For the September 2023 quarter, the Group reported a disappointing net profit of $1.6 billion, down 83 percent from $9.3 billion in 2022, but the Group’s stockholders hugged up a loss of $2.1 billion in the quarter compared with a profit of $5.2 billion for the September 2022 quarter.

NCB Financial Group Head Office

The results translate to negative earnings per share of 92 cents in the fourth quarter and positive earnings of $3.30 for the year, down from $2.28 and $10.39 for 2022 respectively.
The Group incurred a large charge for staff changes but in a typical investor unfriendly manner, the directors kept this important information from shareholders, leaving them to guess what the one off cost is and what normalised earnings are and could be going forward. The financial statements show staff costs jumping $7 billion in the final quarter over the June quarter and other operating expenses climbing by $4.5 billion for the same period suggesting that the charges for staff separation and compensation for the two former top executives would be in the range of $11 billion.
The group segments show mixed fortunes during the recently completed fiscal year, with the Consumer and SME Banking segment suffering a loss in the year from the generation of revenues net of interest cost of $34.9 billion, up from $32.8 billion in 2022 and an Operating loss of $719 million, with net results of $58 million in 2022. Payment Services contributed $17.8 billion in revenues net of interest cost, with net segment results of $1.5 billion, down from $2.25 billion in operating profit in 2022, following net revenues of $14.2 billion.
Corporate and Commercial Banking had a year with modestly higher revenues, with net income of $10.8 billion after interest expenses and a profit of $6.2 billion compared with 2022 with net revenues of $10.2 billion and segment profit of $6.66 billion.
The Treasury and Correspondent Banking segment generated revenues net of interest charges amounting to $13.26 billion, down from $14.9 billion in 2022, with an operating profit of $9.9 billion in 2023 versus $12.4 billion in 2022. Wealth, Asset Management and Investment Banking contributed revenues of $15.7 billion net of interest and $16 billion in 2022 with segment results of $8.8 billion in 2023 and $9.2 billion in 2022.

NCB branch in Montego Bay.

Life and Health Insurance and Pension Fund Management ended with net revenues of $40.5 billion in 2023, down sharply from $53.7 billion in 2022, with segment results of $21.5 billion in 2023, collapsing from $32.8 billion in 2022. The General Insurance segment had a great year as revenues hit $24.2 billion net of interest cost compared to $19.3 billion in 2022 with net results surging to $11.6 billion from $5.8 billion in 2022.
The Group’s loans and advances, net of credit impairment losses, totalled $614 billion, an increase of 6 percent over $581 billion in the prior year. According to the directors’ report, “Non-performing loans totalled $25.7 billion, which led to an improvement in the non-performing loan ratio, decreasing to 4.1 percent, from 4.4 percent in the prior year.”
At the end of the year, deposits totalled $748 billion, versus $715 billion in the prior year. Investment and pledged securities amount to $110 billion up from $96.8 billion in 2022.
Stockholders’ equity rose to $170 billion, from $146 billion. The improvement flowed from profit for the year as well as a partial reversal of investment losses in the previous year, with the current year delivering a surplus of $15.7 billion compared with a loss of $47.5 billion in 2022.
On the surface, the reported results are disappointing but investors should be looking beyond them knowing that a significant amount of the cost in the last quarter is unlikely to recur in 2024 while the revenues remain intact and should grow all things being equal.
The Group declared a dividend of 50 cents payable in December, this is a reduction from the amount of $1 last paid in February 2020.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Emerging Stock, Jamaica Stock Exchange, NCB Financial Group

Q3 profit climbs 18% at GraceKennedy

November 19, 2023 by IC Insider.com

Profit after tax climbed 17.7 percent to $1.77 billion for the September quarter this year, compared to $1.5 billion over the same period in 2022 at GraceKennedy, from a 13.5 percent rise in revenues to $39.55 billion, up from $4.85 billion in 2022. Profit before tax for the third quarter rose 15.7 percent to $2.62 billion from $2.27 billion as Revenues climbed 13.5 percent to $39.56 billion from $34.85 billion.
For the first nine months of the year, revenues rose 9.7 percent to $117.8 billion, over the $107 billion earned for the nine months to September 2022. Profit before tax reached $8.8 billion, up 14 percent from $7.7 billion and net profit after tax attributable to shareholders of the group rose 14.2 percent to $6.4 billion from $5.6 billion.
The profit translates to earnings per share for the third quarter of $1.79 and $6.02 for the nine months, compared to $1.52 and $5.23 in 2022, respectively.
Earnings per share for the full year ending in December should hit the $8 market, with a PE ratio of 9 based on Thursday’s last traded price of $71.50.
“GK’s food business demonstrated b performance, with notable growth in revenue and profitability for the period. GraceKennedy Financial Group also delivered a positive performance, driven by b top-line growth” Gordon Shirley, chairman and Don Wehby, Chief Executive Officer stated in their commentary on the results.
The company will pay a dividend of 65 cents per stock unit on December 15 totalling approximately $643 million. This is the fourth and final dividend payment by GK for 2023, bringing GK’s year-to-date total dividend payout to $2.15 billion.

Group Chief Executive Officer, Don Wehby.

Direct and operating expenses rose from $33.2 billion in the September 2022 quarter to $37.57 billion, for the year to date it moved from $101.93 billion to $111.7 billion. The group incurred impairment loss on financial assets in the quarter of $100 million compared to $96 million in the previous year and for the year to date, $233 million versus $230 million in 2022. Other income delivered $856 million to profit in the third quarter up from $752 million in 2022 for the similar period, and for the year to date $2.76 billion versus $2.36 billion in the prior year.
Interest income from non-financial services amounted to $161 million in the September quarter down slightly from $169 million in the 2022 third quarter and for the year to date $474 million up from $424 million for the nine months to September 2022. Interest expense rose to $415 million in the latest quarter from $276 million in 2022 and for the nine months, $1.2 billion up from $919 million in 2022. Associated companies contributed $115 million in the September quarter, virtually flat with $114 million in the previous year and $638 million in September 2023 versus $539 million last year.
The group’s lending activity saw loans advanced to customers rising 12.6 percent to $40 billion at the end of September this year while investment securities climbed to $51.6 billion from $36.96 billion at the end of September 2022. Receivables climbed quite sharply by 35 percent from $19.5 billion at the end of September 2022 to $26.3 billion well ahead of the increase in revenues. On the liability side, deposits grew 23 percent to $61 billion from $49.6 billion at the end of September 2022. Loans received by the group amounted to $30.4 billion a slight increase from the $29.5 million at the end of September 2022. Shareholders’ equity ended the period at $77.8 billion, up from $69.7 billion at the end of September 2022.
In commenting on the results, Gordon Shirley Chairman and Don Wehby in a jointly signed report stated “GK food business demonstrated b performance in the first nine months of 2023 with notable growth in both revenues and pretax profit. Our Jamaican food division achieved commendable results.”

Grace Kennedy products

“The manufacturing business also delivered improved results over the previous year. Hilo Food Stores continue to display robust performance in 2023 powered by increased sales. Our international food business experience improved performance in comparison to the same period last year. But growth in revenue and profitability was achieved by GK Foods USA and Grace Foods UK, while Belize and Grace LACA also saw growth. Our La Fe and Grace brands experienced significant growth in the US market, Grace Foods Canada continues to work at overcoming operational challenges and inflationary pressures in that market.”
“The Financial Group delivered positive performance driven by b top line growth. Our insurance segment sustained growth throughout the period.”
First Global Bank delivered improved results over the prior year aided by increased lending. Remittance services suffered a slight dip in revenues and profit and is partnering with Courts to locate the Western Union outlets in their stores. Bill Express also experienced growth in the period.
Based on the above PE ratio that is much lower than the market average of 13 the stock is undervalued measured by net book value that is the price is less than two times book which is low, with several of its peer trading at a much higher valuation based on net book value. Grace’s main problem is that it is a very liquid stock as there is no dominant shareholder controlling a near majority

Filed Under: Company News, Company Results, Dividends Tagged With: Emerging markets, Emerging Stock, First Caribbean Bank, Grace Kennedy, Jamaica Stock Exchange, Jamaican stocks

Profit drops at Image Plus

November 16, 2023 by IC Insider.com

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Image Plus reported sharply lower second quarter results with a 40 percent drop in earnings from $64 million before tax in 2022 to just $39 million for the second quarter as revenues declined by 7 percent to $254 million from $274 million in 2022 but remained flat for the half year at $554 million and resulting in pretax profit falling 33 percent from $153 million to $103 million.
The company indicated that revenues fell due to machine breakdown, although other areas saw growth in the modalities of X-ray and fluoroscopy cases.
Administrative expenses grew 21 percent from $94 million in the August 2022 quarter to $114 million and were up almost 26 percent for the half year to $232 million from $184 million in 2022. Depreciation and Amortisation charges rose from $10 million in the 2022 August quarter to $155 million in 2023 and for the six months to August, it jumped from $19 million to $30 million.
Interest income rose from $206,000 in the second quarter to $7.8 million and from $1.3 million to $12.6 million in the half year while interest cost declined from $6.5 million to $3 million in the quarter and from $9 million to $4.7 million for the half year.
Operations delivered Cash Flows of $120 million after interest income and expenses, but a surge in Receivables reduced the amount to a net outflow of $224 million. The company also purchased fixed assets amounting to $120 million, paid $74 million in dividends and utilized investment funds to help cover the cash flow shortfall, resulting in funds on hands falling to $110 million at the end of the half year.
Earnings per share ended at 3 cents for the second quarter and 8 cents for the year to date. ICInsider.com projects earnings for the year to 21 cents per share.

Dr. Karlene McDonnough – Chairman of Image Consultants Ltd.

Current assets stood at $763 million and include trade receivables of $631 million up from $248 million in August 2022. Cash at bank balances amount to $110 million. “The majority of the trade receivables balance is from one large payer who continues to settle consistently and from whom we have both written commitments and detailed payment timelines to consistently reduce their outstanding amount. This amount has since been reduced in Q3 to date and is believed to be fully collectible based on the historical experience with the payer,” the directors’ report stated.
Current liabilities amounted to $117 million from the August quarter and $124 a year ago.
Shareholders equity ended the period at $966 million up from $362 million a year ago before going public. Borrowings used in the operations totalled $192 million, up from $130 million in August 2022.

Filed Under: Company News, Company Results Tagged With: Emerging Stock, Image Plus Consultants, Jamaica Stock Exchange, Jamaican stocks, junior market

Profit climbs 22% at Stationery & Office Supplies

November 12, 2023 by IC Insider.com

Profit climbed in 2023 at Stationery and Office Supplies an under the radar company until listing on the Jamaica Stock Exchange transformed it into one of the leading companies peddling office supplies in Jamaica. For the quarter ending September this year, profit after tax climbed 22 percent to $96 million from $79 million last year and for the nine months $294 million up 14 percent from $252.5 million.

Stationery & Office Supplies hit a record high on Friday.

Stationary & Office Supplies – Montego Bay office.

The year-to-date figures include a gain on the sale of assets amounting to $7.1 million and $30 million in 2022 as such this year’s ongoing profit performance is greater than the net figures suggest.
Year to date, the operating profit before finance charges and gains or loss on the sale of fixed assets is up a solid 38 percent for the nine months and 12 percent for the quarter.
For the September quarter, revenues inched up from $473 million to $488 million. A fair bit of the slowdown is due to price discounts granted based on originally listed prices following falling input costs. For the year to date, revenues climbed 16 percent to $1.53 billion from $1.32 billion in 2022.
Administrative and general expenses rose 23.5 percent to $138 million from $112 million in the September quarter of 2022 and for the year to date, it climbed 20 percent to $378 million from $314 million. Selling and promotional costs fell to $29 million for the September 2023 quarter from $35.8 million last year, with the year to date figures being almost flat at $97 million in 2023 versus $96 million in 2022. Depreciation charges were slightly down from $8.7 million in the September quarter of last year to $8.4 million this year and year to date the numbers are flat at $26.4 million.
Earnings per share for the third Quarter was 4 cents compared to 3 cents in 2022 and for the nine months end September this year, 13 cents per share, up from 11.33 cents.
ICInsider.com projects 19 cents per share for the year, from revenues of just over $2 billion and 30 cents for 2024. The stock last traded at $1.72, with a PE of 8.9 times current year’s earnings, well below the market average of 12.
Operations produced cash inflows of $356 million, up from $259 million in 2022 and at the end of the period with a surplus of $189 million that brought the total to $320.8 million up from just $99 million at the end of September. The 2023 growth in Cash inflows is after spending $72 million on acquiring property, plant and equipment, $50 million in dividend payments and $40 million used in repaying loans. Some of the amount on hand is earmarked to fund the acquisition of properties to be used for storage to allow for continued expansion of the business.
Current assets closed the period at $1 billion, with Receivables rising from $194 million to $317 million and inventories at $349 million compared with $356 million in 2022. Current liabilities rose to $305 million from $148 million in 2022.
Shareholders’ equity stands at $1.35 billion which is up from $884 million from a year ago and borrowed funds used in its operations is only $65 million.
Going forward, the Seek manufacturing division is to get new machines to help meet growing demand as the current facility is said to be at its peak. The distribution of 3M stationery products has been added to the company’s line in the latter months of 2023 and will boost revenues in 2024, with a full year of sales.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Emerging Stock, Jamaica Stock Exchange, junior market, Seek, SOS, Stationary and Office Supplies

Profit rises at Jamaican Teas

November 10, 2023 by IC Insider.com

Net profit attributable to Jamaican Teas for the September quarter more than doubled to $45 million from $21 million in the 2022 quarter. The net profit attributable to Jamaican Teas shareholders for the year was $237 million, an improved performance from the $194 million in the previous year, the group quarterly report released to the Jamaica Stock Exchange reveals.

Reduced administrative costs aided the improved performance.
Total operating revenues for the September quarter declined marginally from $655 million a year ago to $652 million and $2.7 billion for the year, up from $2.47 billion in 2022.
Earnings per share attributable to shareholders was 11 cents, up from 9 cents in 2022.
The group changed distributors in two important markets and appointed Wisynco as its exclusive local distributor effective November this year, as well as an Ansa McAl subsidiary as our exclusive distributor in Trinidad and Tobago, “these changes are expected to result in improved sales in the coming year, the report stated.”
Stockholders’ Equity rose to $2.96 billion from $2.66 billion in September 2022, with loan financing amounting to $735 million. Net current assets amount to $1.09 billion and investments of $2 billion.
The quarterly states, “the group has also taken decisions to increase our investment in additional machinery to better serve our customers and this is expected to enhance our capacity to meet current demand for some of our products.”
“The group has outgrown its capacity at Bell Road, resulting in us having to rent space at Montgomery Avenue in 2022. Accordingly, the company decided to acquire an existing factory in Temple Hall, St. Andrew and this purchase was concluded in October 2023. The property comprises some 60,000 square feet of factory buildings on about 3 acres of land. Relocation of our spice and dry pack facilities to the Temple Hall facility will commence by the end of Calendar 2023 and the tea factory will follow in 2024.“
“ As a result of the acquisition, the board is considering the sale of the Bell Road property. Combined with sale of the apartments at Belvedere, the possible sale of some of our investment properties and the changes of two of our manufacturing distributors, the Group expects increased sales revenue and improved liquidity in the new financial year commencing in 2024.”

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, Jamaican stocks, Jamaican Teas, junior market

Profit rises 14% at GraceKennedy

November 9, 2023 by IC Insider.com

Revenues at GraceKennedy rose 9.7 percent to $117.8 billion, over $10.4 billion earned for the nine months to September over the same period in 2022. Profit before tax reached $8.8 billion, up by J$1.1 billion, or a 14 percent increase, while net profit after tax rose 14.2 percent to $6.4 billion.
Profit attributable to stockholders hit $6 billion, a 15.3 percent increase over the corresponding period last year. Earnings per stock unit for the period were $6.02, compared to $5.23 in 2022.
Earnings per share for the full year ending in December should hit the $8 market, with PE ratio of 9 based on Thursday last traded price of $71.50.
The company stated that “GK’s food business demonstrated strong performance, with notable growth in revenue and profitability for the period. GraceKennedy Financial Group also delivered a positive performance, driven by strong top-line growth”.
A dividend of $0.65 per stock unit has been announced and will be payable on December 15, 2023, totalling approximately $643 million. This is the fourth and final dividend payment by GK for 2023, bringing GK’s year-to-date total dividend pay-out to approximately J$2.15 billion.

Filed Under: Breaking News, Company News, Company Results, Dividends Tagged With: Emerging markets, Grace Kennedy, Jamaica Stock Exchange, Jamaican stocks, Profits

Profit jumps 31% at Lasco Manufacturing

November 9, 2023 by IC Insider.com

Profit climbed 31 percent after taxation of $258 million to $615 million in the September quarter this year at Lasco Manufacturing, from $469 million after provision for taxation amounting to $210 million in 2022. For the half year, after taxation of $453 million, profit jumped 29 percent to $1.14 billion from $883 million in 2022 after taxation of $361 million.
Sales revenues rose 11 percent for the quarter, to $3.19 billion from $2.9 billion in 2022 and grew 10 percent for the year to date, to $6 billion from $5.5 billion in 2022.
After a brief one year dip in profit in the 2020 fiscal year, profit has been on a roll since and seems destined for a new record in the current fiscal year ending next March.
Management delivered an improvement in profit margin in the second quarter to 38 percent from 37 percent last year resulting in gross profit rising faster than sales with an increase of 13 percent, with a gross profit of $1.22 billion versus $1.08 billion in 2022. Gross profit for the half year soared 38 percent from 36 percent last year, resulting in an increase of 16 percent to $2.3 billion compared with $1.98 billion in 2022.
Operating expenses rose by just 4 percent in the quarter and half year to $394 million in the second quarter from $378 million in 2022 second quarter and in the half year to $755 million from $725 million in 2022. Finance cost declined in the quarter, to $23 million from $36 million in 2022 and from $15 million to $5 million for the six months period.

Lasco’s ICool drinks.

The operations generated Gross cash flow of $588 million and it was increased to $778 million after a reduction in funds previously tied up in working capital, additions to fixed assets of $309 million. After pumping $589 million into short term investments and $496 million in dividends the net cash position ended at $1.6 billion.
Current assets ended at $9.2 billion inclusive of trade and other receivables of $3.3 billion, cash and bank balances of $3.8 billion, while inventories were steady at $2 billion. Current liabilities ended at $1.86 billion. Net current assets was a solid $7.3 billion.

At the end of September, shareholders’ equity closed at $11.75 billion up from $9.9 billion at the end of September last year. There was no long-term borrowing, while short term loan was just $89 million.
Earnings per share for the quarter was 15 cents and 28 cents for the year to date. IC Insider.com computation projects earnings of 70 cents per share for the fiscal year ending March 2024 and 90 cents in 2025, with a PE of 6.7 times the current year’s earnings based on the price of $4.60 the stock traded at on the Jamaica Stock Exchange

Lasco’s products

Junior Market and the value is well down on the average for the market at 11.6, a clear indication of the potential gains ahead in the price. Net asset value ended the period at $2.85 with the stock selling at 1.6 times book value.
The company is in a healthy financial position to do a major acquisition, with no major loan commitment currently and a tidy wad of liquid funds, with more to come as profit increases in the rest of the fiscal year.
Buy and hold for a few years until growth in sales and profit slows considerably to single digits, investors should see a doubling in the stock price by next year June.
ICInsider.com gives the stocks Buy Rated seal of approval.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging markets, Emerging Stock, IC Insider BUY RATED, junior market, Lasco Manufacturing

Paramount Trading profit drops 32%

November 9, 2023 by IC Insider.com

Paramount Trading reported lower profits and revenues in the first quarter ending August following what the company states is the conclusion of a major six month contract for admixture supplied to the construction sector. Revenues declined by 28 percent to $426 million from $595 million the previous year. Profits fell by 32 percent to $65 million from $97 million the last year.

Paramount

ICInsider.com forecast earnings of 27 cents per share for the current fiscal year ending May 2024. The stock traded on the Jamaica Stock Exchange Junior Market at $1.48 on Wednesday is valued at a PE of 6 times earnings based on the projected earnings and trades at just under two times the book value of 77 cents.

Gross profit declined by $23 million in the current year, down 10 percent from $203 million generated in the previous year, resulting in a gross profit margin of 42 percent, up from 34 percent in 2022. The company also generated other operating revenues of $19 million, down from $29 million in the last year. Administrative costs declined 7 percent from $123 million to $115 million this year. Selling and distribution costs increased from $2.6 million to $4.6 million this year. Finance costs climbed from $11 million in 2022 to $14 million in the current year despite a reduction in the total amount of funds borrowed.
Earnings per share came in at just under four cents for the quarter compared to just over 5 cents in the previous year’s quarter.

Container of Allegheny lubricant produced at the local plant

The company generated a positive cash flow of $77 million, which was reduced by an increase in working capital, amounting to $36 million and ended the year with cash funds of $144 million after paying $13 million toward a reduction in borrowed funds. At the end of August 2022, cash funds were $226 million and $121 million at the end of May this year.
Shareholders’ equity ended the period at $1.19 billion, up from $993 million at the end of August 2022 and long term borrowings were $115 million. Short term loans due to be paid within twelve months amounted to $338 million.
Current assets ended at $1.59 billion, and current liabilities were $902 million, resulting in net current assets of $683 million.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Emerging Stock, Jamaica Stock Exchange, junior market, Paramount Trading

Profit to jump 40% in 2024 at Wisynco

November 9, 2023 by IC Insider.com

Profit after tax for the first quarter ending September this year jumped 20 percent at Wisynco Group to $1.55 billion in the current year from $1.3 billion in 2022. Profit before tax also grew by 20 percent from $1.73 billion in 2022 to $2.1 billion, but profit is projected to jump 39 percent for the current year to $6.8 billion, ICInsider.com projections show.
The profit performance resulted from a 15 percent rise in revenues from $11.95 billion in 2022 to $13.73 billion in the current year. Although revenues climbed 15 percent, gross profit increased by just 11 percent, from $4.3 billion in 2022 to $4.8 billion in the current year, as input cost climbed 17 percent to $8.93 billion from $7.6 billion in 2022.
Selling and distribution expenses rose 14.3 percent from $2.12 billion to $2.43 billion and administrative expenses popped nearly 13 percent from $455 million to $513 million. Finance income brought in $168 million versus $85 million in the previous year, but finance cost fell from $150 million to just $11 million, despite borrowings standing at $8.9 billion at the end of the period.
Earnings per share for the quarter rose to 41 cents from 35 cents last year and is projected to reach $1.84 for the full year and $2.40 in 2025. The stock, up 15 percent for the year to date, trades at a PE of 11.3 at the last traded price of $20.70 on the Main Market at the Jamaica Stock Exchange. The PE is slightly below the market average of 12.2.
A dividend of 23 cents per share, totalling $863 million, was paid in July, up from 22 cents per share, totalling $751 million in July 2022. In addition to the above dividends, 22 cents per share was paid in March 2023 and 20 cents in March 2022. The stock trades at 3.4 times a net book value of $6.05 at the end of September.
Cash flow generated for the 2023 quarter amounted to $2.2 billion and $1.9 billion in 2022. After working capital movements, operations delivered net flows of $2.4 billion, up from just $800 million in 2022

Wata is one of Wisynco’s known brands.

Shareholders’ Equity climbed to $22.7 billion at the end of September, up from $19 billion in September last year. Long term borrowings jumped to $2.8 billion from $790 million at the end of September last year and short term loans ended at $1.3 billion and $920 million in 2022. Some of the amounts borrowed are used explicitly to fund a significant expansion of its facilities currently on the way, so far consuming $1.8 billion in the quarter.
Net Current Assets closed the period at $13.5 billion, up from $11 billion at the end of September 2022 and emanate from Current Assets of $12 billion and $8.9 billion at the end of September last year and includes cash and investments of $10.2 billion and $7.7 billion in 2022. These amounts do not take into consideration $2.2 billion in longer term securities at the end of the quarter.
Current Liabilities ended at $7.4 billion at the end of September this year compared to $6.1 billion last year.
The group acquired the distribution rights for the Jamaican Teas products for sale locally. It will add around 2-3 percent to revenues in an entire year in addition to the expansion of the factory and warehousing currently underway and expected to come on stream by March 2024. The expansion will allow for increased production to meet demand they are unable to fill currently and provide capacity to expand exports.