Grace grows Q3 profit 7%

November 9, 2015 by

Grace HStRevenues for Grace Kennedy rose a strong 14.4 percent in the nine months to September, this year, to $59.7 billion from $52.2 billion generated in the corresponding period of 2014. Profit attributable to owners of the group for the third quarter of 2015 was 7 percent higher than for the similar period last year, reaching $754 million.
Profit declined by $338 million or 14.2 percent for the year to date, compared with the similar period of 2014, moving from $2.38 billion to $2.05 billion.
The earnings per stock unit to September amount to $6.19, down from $7.21 in 2014, for the full year should end around $3.4 billion or $10.30 per share.
“The Group’s performance was in part impacted by the costs associated with the integration of our expanded US Food operations through GraceKennedy Foods (USA), recognition of the total asset tax liability in the first quarter, lower foreign exchange gains and higher finance costs”, Group Chief Executive Officer, Don Wehby and chairman Gordon Shirley said in his report to shareholders.

Group Chief Executive Officer, Don Wehby

Group Chief Executive Officer, Don Wehby

Segments|The Food Trading segment reported revenue growth of 17 percent over the corresponding period last year but with falling profit of $754 million compared with $1.02 billion in 2014. The distribution businesses in Jamaica, UK, Canada and Belize reported higher profits when compared to prior year, the report stated. “The Banking and Investments segment reported higher profits when compared to the prior period due to growth in First Global Bank’s net interest income and non-interest income. The growth in net interest income was bolstered by year over year growth in loans and deposits of 28 percent and 21 percent respectively. The Insurance segment delivered higher revenue and profits due to the improved underwriting performance of GK General”, the report to shareholders further stated.
“The Money Services segment recorded higher revenues and profits due to higher remittance transactions and increased market share in Jamaica, higher revenues from our cambio operations in Trinidad, and cost containment initiatives implemented by the segment”, Wehby and Shirley stated.
Shareholders’ equity stands at $37.2 billion with book value per share of $112.47. The company will pay a third interim dividend of 90 cents per stock unit on 16th December.
Grace’s shares are listed on the Stock Exchanges of Jamaica and Trinidad and last traded at J$68.11 and TT$3.60 giving it a PE of 6.7 times 2015 earnings leaving room for quite some growth.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , , ,

Flat profit for Republic Bank

November 9, 2015 by

RBTT price - 9-15Republic Bank reported profit attributable to shareholders of TT$1.22 billion for the year ended September 2015, representing an increase of $30 million or 2.5 percent over that reported for 2014.
For the last quarter, Republic shareholders enjoyed net profit of $326 million versus $324 million in the 2014 quarter, from net operating income of $1.06 billion up from $950 million in 2014.Earnings per share for 2015 is $7.59 and for 2014 $7.42 and diluted earnings per share of $7.57 versus $7.39 in 2014 while return on average assets ended at 1.97 percent, down from 2.10 percent in 2014. Return on average equity for 2015 is 14.09 percent compared to 14.33 percent in 2014.
“Growth was driven by a 10.6 percent increase of $235 million in net interest income, arising from a $5.9 billion or 21.8 percent growth in the loan portfolio and the recovery of $123 million after tax on a non-performing facility. This was offset by an increase in operating expenses of $212 million and impairment expenses of $109 million,” Ronald deC. Harford, Chairman of the group stated.
Harford continuing, indicated the “increase in operating expenses is attributable mainly to the consolidation of HFC Bank (Ghana) and Republic Bank (Suriname) which amounted to $89 million. Impairment expenses of $52 million (net of minority interest) was recorded by HFC to bring its loan provisions in line with Group policy and $57 million was booked by Republic Bank (Cayman) relating to loans and goodwill impairment”.
Total Group assets increased by $6.6 billion or 11.2 percent over the prior period to $66 billion at September 2015 which was aided by two acquisitions during the year by increasing their holding in HFC to 57.11 percent and in July and 100 percent shareholding in RBC Royal Bank (Suriname) N.V. These two purchases added $5.5 billion to the total assets.
A final dividend of $3.10 for the year ended September 2015 (2014: $3.00) will be paid on December 1, bringing the total dividend for the fiscal year to $4.35, a slight increase over the $4.25 paid in 2014.
Republic Bank is headquartered in Trinidad and is listed on the country’s stocks exchange and last traded at $112.

Filed Under: Company News, Company Results Tagged With: , , ,

Profit gains 12% at Medical Disposables

November 4, 2015 by

MEDProfit after tax for the six months of the financial year to September for Medical Disposables of $42.7 million rose 11.5 percent over the similar period last year. For the September quarter, profit after tax came in at $23.4 million, an increase of only $1.9 million or 9.2 percent.
“The increase in profit was as a direct result of the improved performance in sales revenue for the period ended September, 2015”, Kurt Boothe, General Manager stated in the report to shareholders accompanying the interim financials.
Operating profit rose more impressively than net profit, with a rise to $30 million from $22.5 million, an increase of 33.6 percent and for the half year, 29.6 percent to $53.8 million from $41.5 million in 2014. Increases in finance cost, foreign exchange loss and provision for taxation helped to reduce the final numbers to a moderate increase. Cash flows for the six months before interest cost rose to $57 million from $45 million in 2014.
Earnings per share rose to 9 cents per share in the quarter and 16 cents for the six months and should end around 35 cents for the year ending March 2015.
Sales revenue rose to $599 million, increasing by $59 million or 10.9 percent for the six months to September compared to the same period last year. Revenue for the six months rose 8.9 percent to $308 million from $283 million.
Gross profit for the six months ended at $166.7 million and increased by $30.6 million or 22.5 percent compared to last 2015. “This improvement was due to increased sales in all product categories, changes in the product mix and maintaining gross margin efficiency the company said,” Boothe stated. For the quarter gross profit rose 17 percent to $82.6 million from $70.46. Gross profit margin increased to 26.8 percent in the September quarter from 24.9 percent last year for the similar quarter and for the six months period 27.8 percent versus 25.2 percent.
“Total operating expenses of $113 million reflected an increase of $18.4 million or 19.4 percent over the same period last year. The increase in expenses was driven mainly by staff related costs, insurance, utilities, professional fees, information technology services and expenses related to the new property purchased earlier in the year. Staff related expenses, in particular, increased because of the strategic decision to realign the staff complement and compensation to sustain the current growth, development and expansion of the business,” Boothe further stated in his report.
Current assets amounts $587 million inclusive cash funds of $77 million and current liabilities of $253 million, including short term borrowings of $74 million. Shareholders’ equity increased to $435 million with total borrowings of $324 million.
The main activity of the company is the sale of medical disposables and supplies. The company’s shares are listed on the junior market of the Jamaica Stock Exchange since December 2013. The stock last traded at $3.50 and is up 43 percent for the year to date. it is now priced at a PE of 10, based on IC Insider full year estimated earnings.

Filed Under: Company News, Company Results Tagged With: , , ,

Profit doubles for National Flour but…

November 2, 2015 by

National Four doubles profit but gains in Q3.

National Four doubles profit but gains in Q3.


Trinidad’s National Flour Mills reported a 200 percent jump in profit for the six months to June of $20.57 million versus only $6.79 million in 2014, but for the nine months to September, growth slowed sharply, to an increase of 103 percent, to $29 million.
The sharp fall resulted from much slower growth in the September quarter, with profit after tax of $8.5 million, just up from $7.4 million in the similar 2014 quarter. The latest quarter reflects a continuation of the slow down in profits which occurred in the June quarter, with profit margin shrinking in that quarter. Earnings per share for the quarter ended at 25 cents versus 12 cents in 2014.
Revenue climbed 15 percent for six months, and is now up only 7 percent for the nine months to $359 million as revenues fell in the September quarter, to $103 million from $121 million for the September 2014 quarter. Cost rose a little faster in the September quarter, than it did for the June quarter, year over year, administrative cost jumped 32 percent to $30.3 million.
The company generated cash flow from operations of $44 million up from $28 million in 2014 and ended with cash and equivalent of $102 million up from $40 million at the end of September last year. Borrowings grew from $113 million to $137 million and payables were up from $27 million in September last year to $68 million, while equity stands at $223 million.
FlourHelping the company, is the sharp fall in the price of wheat on the world market from a high of more than US$700 to just over US$500 to June but below US$500 per tonnes for quite a bit of the reporting period this year.
National Flour manufactures and distributes flour is listed on the Trinidad and Tobago Stock Exchange (TTSE). Earnings for the full year to December should end around 35 cents per share. The stock trades at $1.97 around 5 times earnings, a low valuation. If the company can maintain the level of profit now being generated and improve on it in 2016, the stock stands to generate a good level of appreciation. Investing in the stock is not without risk. The cost of wheat makes up the bulk of direct cost, the ability for management to adjust prices if wheat prices change can be critical to the profitability. There are also political factors to consider as a large portion of the issued shares is under government ownership.

Filed Under: Company News, Company Results Tagged With: ,

TCL older owners screwed as profit rise

November 2, 2015 by

TCL 9-15Trinidad Cement achieved a 135 percent jump in profit after tax due to shareholders for the quarter to September, but the data showed that the most of the minority shareholders have suffered a massive dilution in their earnings.
The company reports $74 million for the 2015 third quarter, compared with $30 million for the same period last year, year to date profit after tax leapt 558 percent to $395 million above the $60 million reported for similar period for 2014. All shareholders get 16 cents per share for the September quarter for each share they hold, the year to date results show them entitled to $1.18 or 7.65 times the September quarters’ earnings. The year to date profit is 6.8 times the prior year’s nine months figure, a difference of 12.5 percent.
The company through a rights issue increased the share capital which diluted the earnings per share. Instead of increased earnings after the company’s debt was restructured, leading to lower debt servicing cost, the majority of shareholders will see lower earnings per share going forward even as the company prevented some shareholders from participating in the issue and withheld pertinent information from most shareholders. As a result the earning per share for 2016 is likely to be no more than 70 cents compared to 96 cents in 2015 from continuing operations, even as profit is likely to rise.
Earnings per share from continuing operations amount to 15.5 cents for the quarter and $1.186 for the nine months. Full year earnings should end up around $1.40 but this includes approximately 44 cents relating to the one off restructuring credit, thus reducing the ongoing earnings to 96 cents per share.

Caribbean Cement factory- majority controlled by TCL

Caribbean Cement factory- majority controlled by TCL

Revenue in third quarter 2015 rose 7 percent to $550 million compared to $514 million in third quarter 2014, due mainly to a 13 percent increase in cement sales volume in the domestic markets and higher clinker export sales. For the nine months sales revenue amount to $1.64 billion versus $1.59 billion in 2014.
“This performance was largely driven by higher domestic sales volumes, and lower fuel and electricity costs at CCCL and ACCL” Wilfred Espinet Group Chairman and Nigel Edwards, a Director of the company told shareholders in a statement accompanying the interim financials. The company enjoyed a $206 million credit which is reflected mainly in the year to date results for 2015 as a result of restructuring the heavy debt in had incurred previously.
Finance cost for third quarter was $12.5 million lower than third quarter 2014 and ended at $35 million due both to the reduced interest rates from the new loans and a reduction of the principal loan balance from US$245 million to US$200 million. For the year to date finance cost fell to $145 million compared to $214 million in 2014.
Cash flow from operations amounts to $65 million I the quarter and $677 million of the nine months leading to cash at the end of the period at $302 million. The working capital moved to $340 million with current assets of $978 million and current liabilities of $633 million at the end of September. Non-current liabilities stand at $1.4 billion and equity at $1 billion.
The company shares are listed on the Trinidad and Tobago Stock Exchange (TTSE), it manufactures and distributes cement in the eastern Caribbean and Jamaica. The stock last traded at $3.50 on the TTSE on Friday October 30.

Filed Under: Buy Rated, Company News, Company Results Tagged With: ,

RML sheds loss maker grows profit

November 2, 2015 by

ReadymixReadymix West Indies (RML) achieved a net profit after tax of TT$6.3 million for the third quarter of 2015, compared with $2.6 million for the same period last year. Year to date profit after tax for 2015 rose to $13.8 million and is 34 percent above the year to date for 2014, of $10.3 million.
Earnings per share for the quarter amounts to 53 cents versus 33 cents in 2014 for the quarter and $1.16 versus $1 in 2014. The company discontinued operations in Barbados in 2014, excluding losses incurred in the discontinued business, results in earnings of 50 cents per share for the quarter in 2014 and $1.21 for the nine months.
Revenue for the quarter fell 7 percent to $57 million from $61 in 2014. It increased 7 percent for the nine months to $174 million from $162 million in 2014. The decline in sales in the September quarter was “impacted by a slowdown in the construction sector”, chairman of the company Nigel Edwards and the Group CEO, Jose Luis Seijo Gonzalez stated in a joint release with the financials.
The company generated cash flow from operations of $53 million up from $12 million in 2014 and ended with cash and equivalent of $58 million from $12 million in September last year.
RML has equity capital of $105 million, current assets of $111 million, current liabilities of $41 million and non-current liabilities of $10 million.
The company is a subsidiary of Trinidad Cement, its shares are listed on the Trinidad and Tobago Stock Exchange (TTSE), it provides premix concrete mixtures to customers in the construction sector. The stock last traded at $18.79 on the TTSE on January 6 this year but ends trading with a bid of TT17.72 on Friday October 30, putting the value at a PE of 10.

Filed Under: Company News, Company Results Tagged With: , , ,

Witco growing profit up bit by bit

October 31, 2015 by

witcoRevenues for West Indian Tobacco rose moderately to $293 million from $282 million for the quarter and for the nine months to September 2015 and increase of 4 percent to $909 from $872 million in 2014, including excise taxes.
The slight revenue growth resulted in a 9.7 percent increase in profit before taxation of TT$479 million, for the nine months and profit after taxation of $354 million, an increase of 7.6 percent over 2014. For the September 2015 quarter, profit after taxation ended at $113 million an increase of 6.7 percent over 2014.
Expenses were kept below that of 2014, in the latest quarter and year to date, with only selling and distribution expenses showing a slight increase of $600,000 for the year to date.
The Board has accordingly approved the payment of a third interim dividend of $1.44 per ordinary share payable on 30 November 2015 to shareholders of record at close of business on 11 November. For the year to date dividends already paid amounts $3.17. Witco has been paying all of its profit each as dividends with a pay out of $5.51 from full year earnings of $5.81 in 2014.
The company is a subsidiary of British American Tobacco Company and is listed on the Trinidad and Tobago Stock Exchange (TTSE), it manufactures and markets cigarettes. The stock last traded at $126 on the TTSE. Earnings per share for the quarter is, $1.34 versus $1.26 in 2014 and for the year to date, $4.20 versus $3.91 in 2014 and the net book value works out at $4 per share with the equity of $336 million. Earnings per share should reach $6.25 for 2015 and would result in a PE of 20 times earnings.

Filed Under: Company News, Company Results Tagged With: , , , ,

Q4 Profit jumps 215% at AMG

October 31, 2015 by

AMG Packaging enjoyed a great year to August, with 74 percent jump in profits to $79 million over 2014 and 86 percent before expenses incurred for the new toilet tissue operation. For the last quarter of the fiscal year things were even better with a 215 percent jump to $27 million.

AMG Packaging report big gains in profit for 2015

AMG Packaging report big gains in profit for 2015

Earnings per share for the full year to August amount to 78 cents, up from 45 cents in 2014.
A sharp $4.5 million fall in fuel cost and repairs and maintenance respectively, a 50 percent cut in selling and distribution expenses amounting to $7 million, and lesser declines in wages, electricity along with an increase in revenues helped to improve gross profit, margins and the results for the year.
Gross cash flow generated from operations came in at $92 million, up from $58 million in 2014. Going forward its unclear what impact the new operations will have, barring any major losses IC Insider is forecasting $1.05 per share after tax for 2016, the first year of reduced taxation will be payable. The company paid dividends of $18.4 million during the fiscal year and in the prior year $20.5 million.
Looks like a greater stability in raw material cost and attention paid to cost in a number of areas, paid rich dividend in the past four quarters and in particular the final quarter. Cost of sales fell from $491 million in 2014 to $484 million and gross profit jumped to $149.4 million from $116 million, an increase of 28.6 percent. Revenues rose moderately by 3 percent for the quarter to $172 million and 4 percent increase for the full year to hit $633 million. While the growth in revenues may not appear electric closer look indicates a growth of around 7 percent on a quarter over quarter basis for the last 4 quarters.
Administrative expenses rose from $48.5 million to $51.4 million in 2015 and finance cost declined form $10 million to $8.7 million.
Borrowings grew to $151.6 million while cash funds rose $64 million from $22 million in 2014. The balance sheet shows $59 million deposited to purchase equipment for the new tissue operation. Current assets stood at $335 million and current liabilities at $60 million. Equity capital grew to $377 million from $316 million.
AMG Packaging is in the business of manufacturing paper based boxes for the packaging and its shares are listed on the junior market of the Jamaica Stock Exchange and last traded at $4.80 with a gain of 82 percent for the year to date.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , , ,

Lasco Distributors blow out profits

October 29, 2015 by

Lasco Distributors with responsibility to distribute "I Cool" drink.

Lasco Distributors with responsibility to distribute “I Cool” drink.

Lasco Distributors reported an 87 percent increase in profit after tax for the six months to September, of $379 million over 2014 and a 121 percent increase in the September quarter of $247 million over the similar quarter last year.
The Gross profit for the period was S1.1 billion, an increase of $299 million or 36 percent over the prior year. The Gross Profit margin for the quarter was $628 million, or 32 percent over the same period last year. Gross profit margin for the august 2015 quarter is 17.26 percent versus 17.5 percent in 2014 and year to date 16.2 percent in 2015 and 16.28 percent in 2014.
The huge gain came from increased revenues of 34 percent for the quarter, amounting to $6.95 billion and 36 percent for the six months of $3.64 billion.
“This growth was driven mainly by contributions from our iCool and Unilever lines of business, both of which have been doing very well”, Peter Chin, Managing Director reported to shareholders in the directors’ report accompanying the financial data.
An interesting element of the results is the 10 percent growth in revenue over the June quarter a continuation of the quarter over quarter growth evident from late in 2014 with an average of 8 percent for the last three quarters.
Earnings per stock for the six months amount to 11 cents and 7 cents for the quarter. IC Insider projects profit of 34 cents for the current year and 50 cents for the year to March 2017.
Cost were held well below the growth in revenues with Operating Expenses in the latest quarter rising to $396 million from $377 in 2014 and for the six months this year the company incurred $779 million versus $658 million in 2014 for a rise of 18 percent.
Cash flow from operations increased by 94 percent to $391 million from $202 million for the similar period to September 2014 swelling Cash and Equivalents at the end of the Period to $904,043 compared with $191,277.
The company’s shares are listed on the junior market of the Jamaica Stock Exchange. Its principal activity is the distribution of pharmaceutical and consumable items, ii distributes all of Lasco Manufacturing’s products locally.
The stock may be considered fully priced currently with a PE of 10 being one of the higher priced junior market stocks, but with strong growth expected and lower interest rates to come, investors with a long term time horizon may want to accumulate from now, bearing in mind the limited supply available.

Filed Under: Breaking News, Buy Rated, Company News, Company Results Tagged With: , , , , ,

Dolphin Cove Q3 profit gains 17%

October 29, 2015 by

Image courtesy of Bill Longshaw/FreeDigitalPhotos.net

Image courtesy of Bill Longshaw/FreeDigitalPhotos.net

Dolphin Cove reported a 4 percent increase in profit after tax for the nine months to September, of $412 million over 2014 and a 17 percent increase in the September quarter to $128 million over the similar quarter last year.
Cash flow from operations increased by 26 percent to $486 million, compared to $385 million for the similar period to September 2014.
Earnings per stock unit for the nine months amounts to $1.05 and 32.6 cents for the quarter and could end around $1.40 for the year, for the full 2014 year earnings was $1.12.
“The improved results were largely reflective of a 10 percent growth in ancillary revenue and better receivables collections in 2015. There was also noticeable growth in the number of customers who visited our Hanover and Half Moon Parks and the Group also benefited from the devaluation in the Jamaican dollar in the third quarter, 2015 as most of our income is earned in United States dollars”.
“Overall revenue grew by 5 percent although, as anticipated, there was a reduction in the number of hotel guests who visited the Ocho Rios Park given the temporary closure (for expansion) of one of the major hotels in this region. The resulting reduction in revenue and profit in this area was however surpassed by strong growth in the other operating segments and an increase in local business on account of our summer promotion which was introduced in September quarter, 2015”.
Stafford Burrowes and his wife

Stafford Burrowes and his wife

“Increase in operating expenses was restricted to 7 percent, for the year to date and 6 percent for the third quarter and was primarily due to additional depreciation, which resulted from the revaluation of buildings. The staff benefited from salary increments, which came into effect in the latter quarter of 2014”, Stafford Burrowes, Chairman and Chief Executive Officer and William McConnell, Chairman of Audit Committee stated in a report accompanying the interim financials.
An interim dividend of 15 cents per share will be paid in December quarter. This brings the total dividend declared to date to 45 cents and equals the same level of dividend which was declared as at September quarter, 2014.
Property, plant and equipment jumped to $2.19 billion at the end of September from $1.11 billion at the end of September last year as revaluation surplus added $930 million. Revaluation and retained profits helped to swell equity to $2.7 billion while borrowed funds stood at $240 million.
The company’s stock is traded on the Jamaica Stock Exchange and closed on Wednesday at $10 but with these results should be heading back upwards to the $13 range before long.

Filed Under: Company News, Company Results Tagged With: , , ,