Jamaica Stock Exchange reported a 44 percent jump in the first quarter profit to $126 million, from $87 million in 2015 for the three months ending March. The growth in profit flowed from revenues of $327 million, a 29 percent increase over the $253 million in 2015. The increase this year comes against the background that the quarter in 2015 results came from a loss position of $2.3 million.
Earnings per share ended at 89 cents in 2016 versus 62 cents in 2015. Profit before tax, grew from $130 million in 2015 to $187 million, with tax taking $61 million in the 2016 first quarter from $43 million.
Revenues growth benefited from increased trading activities this year over 2015, new business from the handling of repo business and from a big trade in the shares of Desnoes and Geddes, in 2015 there was a large trade in the shares of Scotia Group.
Expenses climbed at a slower pace than income, with an increase of 16 percent to end at $150 million. Wages climbed from $46 million to $57 million due to salary increases and additional staffing. Advertising and amortization is up from $14 million to $20.7 million, while other operating cost rose by $10.6 million from $5 million.
At the end of the quarter, cash and equivalent stood at $589 million and equity capital climbed to $751 million up from $649 million at the end of March 2015.
JSE’s stock traded on the Jamaica Stock Exchange with the price closing at $21 on Thursday.
JSE first quarter results jump
Grace Kennedy’s blow out quarter
Grace Kennedy profit for Q1 jumped 153%
Grace Kennedy reported a 153 percent jump in it results for the first quarter ending March with profit after tax of $1.5 billion versus $589 million in 2015. Grace reports that $606 million of the increase came from disposal of investment, with the bulk of it coming from the liquidation of a subsidiary.
Earnings per share ended at $4.51 compared to $1.78 in 2015 and the full year’s earnings looking to exceed $13 per share.
Grace reported sales revenues of $22 billion up from $19.36 billion in 2015, with profit from operations doubling to $1 billion, while other income amounted to $991 million up from $316 million in 2015.
Group Chief Executive Officer, Don Wehby steering the Grace ship to safer waters.
The food and trading division enjoyed the most growth, moving from $398 million to $855 million, the banking and investing segment recorded lower profits of $29 million than the $89 million in the 2015 period, while the money transfer segment, continues to deliver attractive increases of 26.5 percent, with profit of $587 versus $464 million and the Insurance division went up 48 percent from $67 million to $99 million.
The company attributed the strong increase in the food and trading division to “improved performance of our food distribution and manufacturing business in Jamaica and internationally.”
Grace’s stock has come in for increased demand on the Jamaica Stock exchange over the last few trading days, with the price closing at $84 on Thursday with 1,021,582 units traded.
Jamaican Teas profit rises
A 55 percent jump in the profit before tax for the quarter to March 2016, to $31 million over the previous year’s quarter, was one of the highlights of Jamaican Teas’ 2016 performance to date. After tax profit jumped for the quarter by 30 percent to $26 million. There was no taxation provision in the 2015 period.
For the six months to March, profit before tax was up 69 percent to $73 million but after accounting for tax, in the current year ended 44 percent higher at $62 million for the 2015 period. Total comprehensive income which includes unrealized gain on sale on investments was up year over year at $95 million versus $57 million in 2015.
Sales for the Quarter of $326 million exceeded the $293 million for the previous year’s quarter by 11 percent, while for the six months, sales grew 17 percent to $713 million. Gross profit for the group increased faster than revenues, with an increase of 22 percent to $73 million for the quarter to March and for the year to date, by 24.5 percent to $152 million.
The manufacturing division recorded growth of local sales of 11 percent to $94 million for the quarter and 14 percent for the half year to $190. Exports grew 12 percent for the quarter to $90 million and 8 percent for the six months period to $199 million. Retails sales grew ahead of inflation with an increase of 12 percent to $141 for the quarter and an increase of 10 percent for the half year, to $257 million. There were no sales recorded for residential property for the quarter but sales of $40 million were recorded in the year to date results.
Profit before tax for the manufacturing division was $47 million compared to $34 million for the six months to March while for the retail segment profit was just $1 million compared to $577,000 in 2015. Share of associated company loss amounted to $5.10 million versus $3.34 million in 2015.
Expenses for quarter to March rose 18.5 percent and 18 percent for the six months to March but the increase was less than that of gross profit. Sales and Marketing cost rose by 24 percent to $18 million, Administration cost rose 17 percent to $66 million, Finance cost ended the period at $20 million, an increase of 16 percent, partially due to delay in completing sales in the real estate development, as well loans used in the funding of equity investment.
Investments contributed $8.6 million to profit from sale of investments for the half year leaving unrealized gains of $44 million at the end of March, with the gains included in the investment portfolio of $119 million.
Inventories grew from $396 million in March 2014 to $434 million, including $240 million cost of the real estate development. Amounts due from purchasers of houses in the development, totalling $75 million, helped to push receivable balance to $275 million.
Payables increased by $42 million over the year-end, due mainly to the purchase of inventories which increased by $45 million, or 11 percent over the September 2015 balance.
Cash generated from operations amounted to $38 million after paying corporate taxes of $20 million and repaying loans of $36 million and cash and cash equivalent ended at $35 million.
Shareholder’s equity stood at $820 million for a book value per share of $2.43 compared to a stock price of $3.90 on the junior market of the Jamaica Stock Exchange. (John Jackson is a director of Jamaican Teas).
Strong JPS financial performance
Jamaica’s main power generator, Jamaica Public Service Company, delivered improved results for its shareholders for 2015. The company reported US$26.5 Million in profit and US$30.7 Million total Comprehensive income for the full year to December. The result was an improvement over the $23 Million and $7.5 Million recorded respectively in 2014.
The improvement was due to a combination of factors, including growth in energy sales, improved generation efficiency and lower than expected finance costs.
The Company earned operating revenues of US$760 million for the year, a decline of $263 million or 26 percent than in 2014, due primarily to the 46 percent decrease in fuel costs recovered from customers, offset by a 2 percent increase in energy sales. JPS states that the increased energy sales, 1.9 percent above the 2014, reversed a three year trend of declining sales. “The increase was attributed to warmer weather, lower fuel costs and increased consumer confidence. As a result, the non-fuel revenues were approximately $7M or 1.7 percent above budget.”
The company also stated that it recorded the best thermal plant fleet Heat Rate ever: which also better than the target set. Operating expenses of $200 million incurred in the current year compares to $191 million in 2014. Excluding depreciation and amortisation expenses, the increase flowed from $5 million increase in other operating expenses which moved from $137 million while depreciation and amortisation expenses increased to $58 million as opposed to $54 million in 2014.
Net finance costs decreased by $13 million or 23% from $55 million in 2014 to $42 million in 2015 mainly as a result of a reduction in net losses suffered on foreign currency transactions and balances. Cash inflows from operating activities improved from $106 million in 2014 to $119 million in 2015. The improved inflows from operating activities were offset by increases in the cash outflows from investing and financing activities. Cash outflows from financing activities increased marginally from $64 million in 2014 to $65 million in 2015. Cash outflows from financing activities increased from $36 million in 2014 to $57million in 2015. At the end the cash position saw net cash & cash equivalents decreasing from $8 million in 2014 to $6 million.
JPS has preference shares listed on the Jamaica Stock Exchange but no ordinary shares.
Steady progress at NCB
For the six months ended March, this year, National Commercial Bank (NCB) reported net profit of $6 billion or $2.44 per share, an increase of $594 million or 11 percent over the similar period in 2015. Profit after tax ended 10.2 percent higher at $3.6 billion, $332 million more than for the 2015 period, as loans and advances grew $14.8 billion for a 9.4 percent increase to $172.7 billion.
For the six months period, operating income increased by 8.6 percent, or $2 billion, compared with the six months to March, 2015. Contributing to this increase, are net interest income increasing by 9.4 percent, or $1.2 billion, due to growth in the net loans and investment securities portfolios and a reduction in interest expenses driven by the decline in the repurchase agreements portfolio. Premium income grew by $687 million, or 18.5 percent, due to higher levels of life insurance and annuity contracts and net fee and commission income increasing by 7.9 percent, or $384 million, mainly due to credit related fees from the growth in the loan portfolio, corporate finance and unit trust commissions arising from growth in those product lines.
“Operating expenses increased by 10.8 percent, or $1.8 billion, over the six months ended March, 2015 as policyholders’ and annuitants’ benefits and reserves, were up by $977 million, or 51 percent, due to increased actuarial reserves related to life insurance and annuity contracts sold. Staff costs climbed by 9.4 percent, or $593 million. Other operating expenses, were up by $366 million, or 5.5 percent, due to technical, consultancy and professional charges, licensing and processing fees” NCB directors’ report to shareholders stated.
“We anticipate a steady performance for the second half of the financial year as we pursue our strategic objectives and implement various initiatives under our digitisation agenda.”
“Commercial banking activities, comprising the Retail & SME, Payments Services, Corporate Banking, and Treasury & Correspondent Banking segments, produced combined operating profits of $4.6 billion for the six months ended March, 2016, an increase of 6.9 percent, or $299 million, when compared to the six months ended March, 2015. Our Treasury & Correspondent Banking segment was the largest contributor to operating profit for the period.” The directors’ report went on to state.
IC Insider.com is projecting earnings of $5.65 for the year to September. The stock traded on Friday on the Jamaica Stock Exchange at $40 and would be valued at a PE of 7.2.
Non-performing loans totalled $8.5 billion as at March, down from $8.8 billion at March 2015, representing 4.8 percent of the gross loans compared to 5.4 percent a year ago. Customer deposits of $251 billion, increased by 19.5 percent over the twelve months, at a much slower pace than growth in the critical area of lending.
NCB ended with equity of $92 billion at the end of the quarter but lending only accounts for 58 percent of customers’ deposits and funds under securitisation arrangements.
Tax impairs Jn Life profit
A rise in the charge in taxation for 2015 to $35 million, from $3 million in 2014, eroded the 20 percent gain in gross premium income, JN Life Insurance realized, for the year ended December 2015.
Premium income amounted to $352 million from $294 million for the prior period leading to net premium income of $292 million for an increase of percent over the $250 million netted in 2014.
Operating cost and net insurance benefits increased from $155 million to $184 million an increase of 19 percent, just a shade lower than the increased premium income.
The tax rate increase resulted from the introduction of a corporate income tax last year March that replaced premium and investment taxes at rates of 3 percent and 15 percent respectively. Thus the effective corporate tax rate for JN Life for 2015 was 26 percent of pre-tax profit in contrast to 2.4 percent for 2014.
Although profit before tax increased from $118 million to $135.5 million profit after tax fell from $115 million in 2014 to $100 million, due to the increased tax.
While profits declined moderate total assets grew 36 percent year-on-year from $355 million to $481 million. Investments, which were mainly in BOJ certificate of deposits and government notes, increased by 31 percent over the $293 million reported for 2014 to $384 million.
Mayberry Q1 profit hardly moved
Total comprehensive income for the March quarter at investment bankers, Mayberry Investments, increased 165 percent to $364 million, compared to $137.6 million in the 2015 quarter. The more investment sensitive number, net profit, was just $94 million compared to $82 million in the corresponding 2015 quarter.
Earnings per share ended at 8 cents, up from 7 cents in 2015, making the stock at $3.40, fully priced based on current market valuation measures. Profit was boosted by $209 million in realised trading gains compared with $53 million in 2015 but suffered from unrealised investment loss of $94 million versus a gain of $12 in 2015.
Income from fees and commissions jumped 204 percent to $38.9 million. Net interest income suffered a reduction of 34 percent or $33.4 million to reach $65 million, dividend income declined from $57 million to $18.6 million and net foreign exchange gains ended at $34 million, down from $40 million.
The decrease in net interest income was as a result of the reduction in the size of the repo portfolio. A general decline in the global bond market due to speculation about US interest rates and changes in the market conditions which impacted the bond prices in the portfolio.
Operating expenses for the period rose 27 percent to $204 million from $161 million for the corresponding period in 2014, “The increase in expense is due to increased costs for consultancy as well as legal and professional services” Gary Peart, Chief Executive Officer stated. Additional provision for credit losses of $7.5 made during the period compared to a write back during 2015 of $5 million contributed to the increase.
Gary Peart, Chief Executive of Mayberry Investments.
The group made investments in four associated companies since July 2015, making Lasco Financial Services, Blue Power Group, Caribbean Producers and Iron Rock Insurance Company associates and contributed $28 million in profit, there was no income from associates in the 2015 period.
At the end of the period stockholders’ equity was $6.6 billion, an increase of $2.3 billion over the corresponding period in 2015. Net book value ended at $5.50 per share and big premium to the last traded price of $3.40 on the Jamaica Stock Exchange.
Profits up 18% at Eppley
The insurance premium financer Eppley, reported a 17.7 percent increase in profit after tax for the first quarter this year, of $10.6 million over the $8.7 million made in the first quarter of 2015. The profit resulted in earnings per share of $13.27 in the first three months to March this year.
The improved results emanated from interest income of $43 million, down from $44.94 million in the first quarter of 2015 while net interest income ended at $15.4 million compared with $15.95 million in the 2015 quarter. Other operating income ended at $11.64 million from $5 million in 2015.
Administrative expenses climbed a big 34 percent to $16.48 million from $12.3 million.
The Board approved a dividend of $9 per share payable on April 20 to ordinary shareholders on record as of April 11. The board disclosed that they expect to maintain this level of dividend each quarter, to be adjusted with the final quarterly dividend each year, to distribute the vast majority of annual earnings.
Rights Issue|Eppley will be issuing additional ordinary shares to fund the expansion of our business through a rights issue to existing shareholders who will be advised shortly of the terms of the issue.
Proceeds from the rights will improve the equity capital which now stands at a paltry $314 million and improve the debt to equity ratio which is heavily weighted towards medium term redeemable preference shares. Leverage was 3.2 times equity capital at the end of the quarter, with the average cost of debt at 10 percent. At the end of the quarter, cash was $164 million and net asset value of $394 per share, while invested funds consisting mainly of loans, leases and receivables amounted to $1.26 billion, with an average yield of 16%.
Eppley last traded at $505 on the junior market of the stock exchange and boast a PE of 6 based on projected earnings of $80 per share for 2016 which would result in earnings growing by 14 percent over 2015 out come.
Profit jumps 127% for car mart
Sanya Goffe addressing the audience at the listing of Jetcon’s shares in March. Looking on are Andrew Jackson and Karl Wright, directors.
Jetcon Corporation’s revenues grew 55 percent in the first quarter ending March, leading to an increase of 127 percent in profit before tax came of $19.35 million, while after tax the profit rose 126 percent to $14.6 million or 9.4 cents per share compared with $6.8 million in the same period in 2015.
The growth for the quarter is above the 50 percent increase enjoyed during all of 2015. Gross profit doubled to $32.4 million and gross profit margin, moved from 16.9 percent to 21.9 percent, during the quarter.
Inventory of motor vehicles and parts increased moderately since March 2015 but is up 46.7 percent since December 2015, to reach $123.9 million while receivables increased sharply but is due to amounts deposited with suppliers for goods. All loans that were outstanding at the end of December last year have since been repaid in full and cash on hand increased to $60.5 million helped by the inflows of funds from the initial Public offer.
The shares which were listed on the junior market of the Jamaica Stock Exchange in March this year, traded at $2.85 after details of the results were released.
236% jump in Carib Cement profit
Caribbean Cement shares traded at $25 after Q 1 results.
Full year 2015 results were a profit after tax of $1.5 million or $1.82 per shares but after accounting for exceptional income and expenses resulting in lower profit than from ongoing operations. Included in the one off cost was redundancy payment of $436 million which h will result in lower payroll cost that should be equivalent to the separation cost in the first year.
Revenues climbed to $3.977 billion from $3.58 billion in the first quarter as domestic sales grew while export declined. Interest cost declined from $65 million in the March 2014 quarter to just $5.6 million in the current quarter. Cost elsewhere fell by $270 million in the quarter to help boost the profit.
Carib Cement paid taxes of $244 million in the quarter according to data in the cash flow but the provision against the quarter’s profit is $118 million. Cement ended up with cash balance at $963 million but invested $203 million of the cash inflows while working capital used up $525 million.
The profit for the quarter brought accumulated losses to $4.9 billion which should be wiped out in 2017 if the current trend of profitability continues.
The stock traded as high as $25 on Friday after results were released.
