AMG 2023 profit slips, watch 2024

October 24, 2023 by

Profits fell slightly at AMG Packaging, producers of carton boxes, in the 2023 fiscal year to August to $94 million, but a close look shows the 2023 performance to be better than that for 2022, with the current year’s figures including a one off charge, plus vastly increased taxation than in the previous year.

AMG Packaging

Profit after tax declined from $105 million in the previous year, but this is after taxation climbed from $18 million to $39 million in the current year and a one off charge of $11 million, with revenues coming out at $1 billion in the current year, up from $996 million in 2022. Revenues for the fourth quarter were $230 million, down 12 percent from $257 million, management indicated that the reduction represented reduced production for one month—profit after tax ended at $19 million, down from $25 million in the previous year. The 2023 profit was declined by the abovementioned charge related to credit taken from 2017 to 2021 for payroll taxes not allowed for Junior Market companies. Had this not been the case, profit would have been higher than in the prior year, ending at $30 million instead of the lower figure reported.
In addition, taxation for the quarter was $11 million versus $5 million in the prior year, even as profit was lower. Pretax profit of $30.5 million in the final quarter would have been $41 million, excluding the one off charge versus $29.5 million, reflecting a solid 39 percent improvement and the full year $144 million compared with $123 million for an increase of 17 percent.
The company benefitted from the reversal of impairment losses and foreign exchange gains amounting to $4.5 million in the fourth quarter and $3 million for the twelve months, this compares with a loss of $5.4 million in 2022 for both the final quarter and the full year.
Even as revenues fell in the final quarter, gross profit rose to $79 million from $75 million in the previous year as the cost of sales declined 17 percent in the period from $183 million to $152 million. Gross profit jumped to $312 million from $273 million for the year to August, with cost of sales falling just 3 percent from $723 million to $700 million. Management Discussion and Analysis report stated that the reduction in manufacturing cost “was due mainly to the increase in efficiencies in our production processes.” From all indications, the new machine, installed before the start of the 2023 fiscal year, resulted in improved performance, with lower labour costs that flowed from operating one shift instead of two and reduced overtime. Working one shift would also reduce energy costs in using the machines.

New addition to the factory

Administrative costs were well contained at $27 million for the quarter, which was similar to that of 2022, but it grew 17 percent to $111 million for the year from $95 million in the previous year. Finance cost was relatively stable, coming in just around $2 million for the quarter and $8 million for the full year versus $8.7 million in the previous year. Depreciation climbed to $11 million from $8.4 for the quarter and $43 million from $30 million last year.
The operations generated Gross cash flow of $176 million and ended with increased funds for the year at $174 million after significant changes in working capital primarily relating to a reduction in amounts tied up in inventories and paying down amounts due to creditors.
Current assets ended the period at $590 million compared with $639 million in 2022. Trade and other receivables amount to $137 million, inventories amount to $156 million, down from $394 million in 2022 and cash and bank balances ended at $297 million. Current liabilities ended the period at $120 million. Net current assets ended the period at $469 million.
At the end of the year, shareholders’ equity amounts to $1.28 billion, up from $1.18 billion in 2022, with long term borrowings at $77 million, down from $81 million in 2022 and short term at $14 million, which is similar to the amount due at the end of 2022 fiscal year.
Earnings per share for the quarter was 4 cents and 18 cents for the year. IC Insider.com computation projects earnings of 40 cents per share for the fiscal year ending August 2024, with a PE of 6 times current year’s earnings based on the price of $2.35 the stock traded at on the Jamaica Stock Exchange Junior Market on Monday. Net asset value ended the period at $2.50, with the stock selling at a slight discount to book value.

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Disappointing early Q3 results

October 22, 2023 by

Profits are the primary driver of stock prices. The early release of third quarter results for 2023 for some listed companies has been less than inspiring, with the majority reporting lower revenues and profits for the third quarter and, in some cases, reduced revenues and profits for the year to date.  That is not the results the market needs to lift a sagging market weighted down by some poor profit results for the year and tight monetary policy being pursued by Jamaica’s Central Bank.

Margaritaville, located in the Turks & Caicos Islands

So far, Companies reporting include AMG Packaging, Caribbean Cream with it trading brand  Kremi, Express Catering, Image Plus Consultants, Knutsford Express, Margaritaville, Mayberry Investments, Paramount Trading and Portland JSX Fund.
AMG Packaging reported a slight drop in full year earnings to August of $94 million. The 2023 performance is better than that of 2022, with the current year’s figures including a one-off charge and vastly increased taxation than in the previous year.
Profit after tax is down from $105 million in the previous year, but this is after taxation that climbed from $18 million to $39 million in the current year. Revenues in the current year come out at $1 billion, up from $996 million in the prior year. For the quarter, revenues fell to $230 million from $257 million, with profits after tax of $19 million, down from $25 million in the previous year. The 2023 result was dragged down by a one off charge relating to payroll tax credits that were not allowed in prior years, amounting to $11 million, had this not been the case, profits would have been higher than for the previous year.  Additionally, the taxation charge for the year was $11 million versus just $5 million in the prior year’s fourth quarter.

Caribbean Cream reported revenues of $646 million for the 2023 August quarter versus $645 million in 2022, with the year to date revenues slipping into $1.25 billion from $1.257 billion in 2022. Profit fell to $3.6 million in the August quarter, down from $7 million in 2022, but is up to $10 million for the six months from $8.5 million in 2022.
Revenues and profits rebounded strongly at Express Catering in the first quarter to August 2023 versus 2022. Net profit for the quarter ended at US$843,114 for EPS of 0.051 US cents, up 29 percent from a profit of US$652,841, with EPS of 0.040 US cents in the similar period in 2022 as revenues climbed 30 percent to US$5.4 million from US$4.9 million in 2022 aided by a strong rebound in tourism traffic passing through the Sangster International Airport in Montego Bay, as well as the opening of new restaurants in the airport.
Image Plus reported sharply lower second quarter results, 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, resulting in pretax profit falling 33 percent from $153 million down to $103 million. The company indicated that revenues decreased due to machine breakdown.
Revenues at Knutsford Express jumped 18.5 percent for the first quarter ending August to $492 million from $415 million in the 2022 first quarter. The revenue improvement translated to slight growth in profit as cost rose nearly 26 percent to $380 million from $303 million. The company stated that it increased its workforce to manage growth. Before tax, profit increased marginally to $86 million from $84 million in the prior year.
Margaritaville was one company delivering improved revenues and profit for the 2023 first quarter, primarily reflecting improvement in tourism traffic in the Caribbean region. The company generated revenues of US$1.8 million in the August 2023 quarter, up solidly from US$1.42 million in the prior year and delivered gross profit of $1.33 billion this year versus US$1.03 million. Net profit surged to US$230,000 for the year to date against just US$94,000 in 2022.
Mayberry Investments released nine months’ results with a $985 million loss for the third quarter and $693 million loss for the nine months after reporting significant investment losses of around $2 billion in both periods, but shareholders’ equity remains strong at $15.75 billion.

Paramount

Paramount Trading reported lower revenues and profits in the first quarter ending August, following what the company states is the conclusion of the best major six month contract to supply admixture to the construction sector. Revenues declined by 28 percent to $426 million from $595 million the year before and profits fell by 32 percent to $65 million from $97 million the previous year.
Portland JSX Fund reported a worsened loss of US$1,457,327 for the quarter to August this year, up from US$416,643 in the similar quarter in 2022 and a loss of US$8.71 million versus a profit of US$376,681 profit for the six months to August 2022.
The results reflect net fair value losses on investments of US$1.3 million in the quarter and US$8.3 million for the half year.

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Profit drops at Pulse

October 14, 2023 by

A near $300 million drop in the surplus on revaluation of investment properties in the 2023 fiscal year pushed profits down by $200 million for Pulse Investments to $1.57 billion from $1.77 billion in 2022 but the company generated positive cash flows from operations of $145 million compared to $170 million in the previous year.
The company expended $489 million on investment property and $169 million on development expenditure during the year, reducing the overall cash on hand to just $90 dollars compared to $217 million in the prior year. According to the audit report, three apartment units were contracted for sale which should result in a loss of $32 million and realise $117 million in total cash, data from the audited statement suggests.
Revenues as reported by the audited financial statements are $949 million, up marginally from $931 million in 2022 and reflect amounts due on barter agreements of $741 versus $743 million in 2022. Model agency generated income of $63 million versus $56 million in the previous year and rental income brought in $154 million versus $132 million in the prior year. Unrealised fair value adjustment on investment Properties amounts to $972 million down from $1.26 billion in 2022.
Pulse incurred Administrative and other expenses of $321 million during the year and $271 million in 2022, with impairment on receivables jumping from $39 million to $53 million, insurance moving from $5 million to $13 million and legal and professional fees up from $11 million in 2022 to $16 million in the latest financial year. Finance cost ended at just $13 million during the latest financial year, down from $45 million in 2022 while taxation dropped sharply from $97 million in 2022 to just $18 million in the latest financial year.

Kingsley Cooper Chairman of Pulse Investments.

Earnings per share came in at $0.24 down from $0.27 in 2022. ICInsider.com estimates 2024 earnings at 30 cents per share with the stock having a PE ratio of just under 7 based on the last traded price of $2 on the Jamaica Stock Exchange Main Market .
Shareholders’ equity climbed to $9 billion in 2023, up from $7.44 billion in the previous year. The current year’s results pushed net asset value (NAV) to $1.39 per share, with the stock price trading at a premium to NAV. Borrowings ended the year at just over $719 million versus $632 million in the previous year. Amounts due to related parties rose to $1.3 billion from just over $1 billion in 2022. Current assets stand at $255 million versus $265 million in 2022 and Current liabilities amount to $135 million at the end of June this year, up from $112 million at the end of June 2022.
At the end of the June 2023 financial year, advertising entitlements amounted to $2.3 billion versus $1.8 billion in 2022 and investment property amounts to $7.77 billion at the end of June this year versus $6.4 billion at the end of the previous year.

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Q3 profit drops at Main Event

October 14, 2023 by

Revenues at Main Event Entertainment rose 45 percent to $1.59 billion for the nine months to July from $1.09 billion in 2022 but took a 29 percent hit in the third quarter to $428 million from $602 million in 2022 with profit reflecting the same pattern with $216 million for the nine months up 208 percent from $104 million and fell 85 percent from $124 million in 2022 down to a paltry $23 million.
Direct Expenses fell 33 percent in the July quarter to $204 million from $304 million in 2022 and rose 28 percent from $583 million to $748 million in 2023. Gross profit slipped 25 percent to $224 million from $298 million in the quarter and jumped 64 percent to $839 million from $511 million for the nine months.
Administrative and general expenses climbed 34 percent to $162 million in the quarter from $121 million in 2022 and from $284 million to $495 million. Depreciation charges remained fairly constant at just over $29 million versus just under $29 million in 2022 and for the nine months $81 million compared with $86 million in 2022.
Accordingly, ICInsider.com forecast is for earnings of 90 cents per share for the current year ending October, compared with 72 cents per share for the nine months to July this year and 8 cents per share for the July quarter. The stock traded at $14.11, on Friday with a PE ratio of 17.2 times ICInsider.com’s latest projected earnings of 90 cents per share. The earnings value the stock at the higher end of the Junior Market average PE of 11 times current years’ earnings.

Main Event

The company generated gross cash flows of $340 million and after purchasing of fixed assets and loan repayment net cash amounts to $62 million and ended the period with cash and cash equivalent of $190 million.
The company’s finances remain b with current assets of $799 million and current liabilities of $330 million with net working capital of $469 million. Funds borrowed to help finance operations totalled $100 million and shareholders’ equity stood at $857 million.
In February 2017, the company’s shares were listed on the Junior Market of the Jamaica Stock Exchange and entitled them to a reduction of income tax for ten years with 100 percent tax free up to January 2022 and 50 percent to January 2027.

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ISP jumps 94% & Lasco Distributors 70%

October 11, 2023 by

ISP Finance the leading price mover in the Junior Market jumped 94 percent for the year, to the end of September while Lasco Distributors soared 70% followed by Main Event, with a solid gain of 58 percent, Caribbean Assurance Brokers rose a robust 56 percent and Regency Petroleum up a respectable 46 percent and cross country passenger mover, Knutsford Express, 45 percent, to close out the top six winners against a decline by just 0.7 percent for the Junior Market over the same period.
The performance comes even as Jamaica’s Central Bank maintained a very tight monetary policy with interest rates on Certificate of Deposits close to 10 percent for most of the year so far.
Relatively high interest rates were only one part of the negative drag on the market. Profit results released during the period for several companies were lower than the comparative period in 2022 and investors hammered those stocks and by extension pressured the market index but rewarded most companies with growing profits, with higher prices.
Junior Market performance was vastly better than the Main Market with most of the top ten companies recording b increase in profits for the first half of the year over 2022.
ISP Finance, a microfinancing company led the Junior Market following news that two new directors with experience in the financial service sector and who had worked with in the past in arranging deals for them were appointed to the board. There was also speculation that the majority shares could probably change hands sooner rather than later. There is also the expectation for increased lending to customers is expected to impact revenues and profit positively following a decline in the half year profit when loans jumped to nearly a billion dollars from under $800 million. Lasco Distributors profits for the fiscal year to March jumped and was followed by improved results in the June Quarter as investors rewarded the performance with s solid price movement. Main Event continued to recover from the damage to revenues and profits during the COVID, bouncing back as profit more than doubled to $216 million from $104 million for the nine months to July. Movement in Caribbean Assurance Brokers’ stock price follows profit jumping from just $4.5 million in the June 2022 half year to $18 million this year. Regency Petroleum profit fell from $51 million to $25 million for the half year but hope for improved profits drove the stock with new gas stations being opened or to be opened. General Accident migrated from the Junior Market to the Main Market on the last day of the month, with the increased stock price spurred by profit surging 195 percent to $165 million in the 2023 half year.
Indies Pharma profit declined moderately for the nine months to June but was up 16 percent in the latest quarter, that performance does not warrant a 34 percent cut in the stock price to September but investors seem impatient with the progress of the company growth. Fesco stock price declined sharply for the period even as the net profits for the June quarter were marginally higher than that of the similar 2022 period, with revenues marginally higher. The stock price pulled back from heady levels in 2022 to adjust to the earnings in the last fiscal year of just under 23 cents per share with indications that it may not significantly improve in the current fiscal year to warrant the high premium it had in 2022. Fosrich, on the other hand, had a sharp decline in profits for the second quarter and the half year but it too enjoyed a big premium in the stock price in 2022, investors readjusted their expectations by marking the price down, although both stocks got a two day bounce at the end of September that improved their performance year to date. Lasco Financial had a third less profit in the 2023 fiscal year than the prior year and reported vastly poorer results in the third quarter to June and that seemed to have encouraged more selling of the stock. Revenues and profit bounced in the third quarter for Limners and Bards but are still down year to date compared with last year and that did not help the stock that lost value during the period. Edufocal profit bounced in 2023 and may not necessarily justify the 38 percent fall in the stock price, while iCreate had totally disastrous results in the 2022 fiscal year as well as in the first half of 2023, with the company’s performance continuing to raise questions about its future. Elite and CAC 2000 suffered a reversal in fortune that is reflected in the decline in stock prices of both companies.

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Transjamaican stock doubles in 2023

October 5, 2023 by

Transjamaican Highway stock closed trading on Wednesday with a gain of 105 percent at a record close of $2.87 on Wednesday and traded at a record $2.95, up 111 percent on Thursday morning, to be one of only two stocks on the Main Market of the Jamaica Stock Exchange to gain more than 100 percent for the year to date, the other being Ciboney up 139 percent.

New record high for the JSE Junior Market.

Investors in Transjamaican, the operators of Highway 2000 have much more to cheer about as the company raised the dividend to be paid in October by 118 percent to 18.66 cents up from 8.55 cents last year. The dividend adds another 13 percent to their return for 2023 based on the opening price for the year of $1.40. While the 2023 performance is a big reward for investors in the stock, it has been a long wait for early investors who bought in the IPO at $1.41 in February 2020, valued then at a PE ratio of 25 times, when the market was averaging 16 times. Critics of the value at the time indicated the serious overvaluation but supporters hailed it as reasonably priced. Now the stock is trading at less than 10 times 2023 earnings of 30 cents per share and buyers have been less than ecstatic about it, by slowly driving the share price to current levels over several months.

Transjamaican Highway

The stock’s performance is supported by an outstanding jump in profits for the six months to June over the similar period last year, with earnings of 14 cents per share versus just 3 cents for the same period last year, with the profit ballooning 338 percent for the June quarter to US$6 million and 442 percent to US$11 million for the half year. Revenues and profit rose as a result of the acquisition of its new subsidiary, Jamaican Infrastructure Operators which reduced cost considerably as well and the group benefitted from increased revenues from operating the toll road. The stock’s performance was also helped by the declaration of the substantial increase in dividend.

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Profit climbs 16% at Jamaica Broilers

October 1, 2023 by

Profit rose a cool 16 percent at Jamaica Broilers Group for the quarter to July 2023, to $1.2 billion over the $1.1 billion in the July 2022 quarter from a mere two percent increase in revenues to $23.4 billion from $23 billion in 2022.

Jamaica Broilers

Gross profit grew faster than revenues, with an increase of 8 percent to $5.7 billion from $5.3 billion in the prior year. The Jamaica Operations had segment results of $1.75 billion, down 7 percent below last year’s result of $1.88 billion. “The reduction was mainly driven by increased pressure from high levels of imports, affecting baby chick sales to our small farmers,” Robert Levy, Chairman and Christopher Levy, Group President & CEO advised investors in their comments on the quarter’s performance.
“The Jamaica Operations showed an increase of 5 percent over the corresponding quarter, which was mainly driven by poultry sales. Our US Operations reported a b segment result of $1.2 billion for the first quarter, 44 percent above last year’s results,” the directors went on to state. The group earned $815 million in segment results in 2022 from segment revenues of $9.2 billion which slipped to $9.1 billion in 2023 from external business in the US Operations.
“We did have a 3 percent decline in total revenue due primarily to falling prices in most of our product lines. However, a 56 percent year over year increase in poultry volumes assisted in offsetting the negative market pressures. Our South Carolina plant which produces the Best Dressed Chicken line of products has gained impressive market acceptance in the United States,” the directors reported.
The Caribbean operations segment that had positive results of $106 million in 2022 recorded a loss of $480 million in 2023.
Administrative costs declined marginally from $2.98 billion to $2.92 billion in the current period, distribution costs rose four percent from $690 million to $720 million, finance costs almost doubled, moving from $320 million to $633 million, taxation moved up from $332 million to $393 million during the 2023 quarter.
Total comprehensive income ended the quarter at $1.45 billion up from $920 million in 2022.
The group reported earnings per share of $1.24 versus $1.07 in 2022. ICInsider.com projects earnings of $7 for the current fiscal year and $9 for the following one. The stock last traded at $32.50, with a price earnings ratio of just under 5, compared to the average of the market of 12.4 based on current year’s earnings.
The group continues to fund expansion with $952 million invested in fixed assets during the quarter, down from $1.2 billion in the similar quarter in 2022, with net fixed assets climbing almost $7 billion from $15.4 billion to $22.2 billion at the end of the quarter. Funds were borrowed to finance the investment in fixed assets, with new loan funding of $2.44 billion during the quarter compared to $3.7 billion in the previous year. Loans repaid amounted to just $664 million versus $1.6 Billion in the previous year. The increased borrowing is the major factor in the climb in interest costs during the quarter, in addition to movement in interest rates internationally.
Cash inflows before working capital requirements for $3.4 billion and is up from $2.6 billion in the previous year after working capital funding rose, the group ended up with a negative cash flow of $2 billion that is up from $1 billion in the previous year.
After the investment in fixed assets, loan payments and receipts, the group was left with negative cash flows for the quarter of $1.9 billion which reduced cash from $4.6 billion at the beginning of the year to $2.8 billion.
The statement of financial position shows a healthy financial status with equity capital of $34 billion net current assets of $17 billion, total current assets amounting to $51 billion and total current liabilities of $34 billion which includes short term borrowings of $21 billion.

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Lab’s sharp turnaround in fortunes

September 26, 2023 by

A sharp turnaround in the fortunes of advertising agency, Limners and Bards was manifested in the July quarter, with revenues and profit rising above those in the same period in 2022 and represents a reversal of the trend of declines during the first two quarter of the year with a 31 percent revenues decline with profit plunging 83 percent for the half year.

Kimala Bennett, Chief Executive Officer of The Lab.

According to Managing Director, Kimala Bennett, the improvement in the third quarter came from the acquisition of new clients and other initiatives pursued by them, some of which will bear fruit in the next fiscal year.
The third quarter performance while very positive was not enough to erase the reduction in the top and bottom line of the company, racked up in the period to April.
Revenues came in at $913 million for the nine months to July, down 18 percent from the $1.1 billion generated in a similar period in 2022 but revenues bounced a solid 17 percent from $320 million in 2022 July quarter to $374 million in the latest quarter ending July 2023. Profit after tax for the nine months to July, amounts to $57 million, down sharply by 60 percent from $144 million reported for the similar period in 2022 but profit for the quarter jumped 76 percent from $21 million in 2022 to just under $37 million in the current year.
Finance income jumped from just under $3 million for the nine months in 2022 to $8.7 million in the current year and nearly doubled from 2.5 million in the July 2022 quarter to $4.1 million in their latest quarter.
Although revenues are down during the current year, administrative costs rose 13 percent from $227 million to $256 million, but in the quarter administrative expenses moved up by 9 percent from $80 million to $87 million. Finance costs declined from $13 million to $8.7 million for the nine months and dropped sharply from $6 million in the July 2022 quarter to just $1.7 million.
Segment performance shows the company reporting results in three segments, Production, Media and Agency. During the July quarter, the Media segment reflected revenue growth of 34 percent to $225 million, Agency was up 44 percent to $50 million but Production declined by 22 percent to $99. Gross profit jumped by 83 percent to $56 million for the Production, Media climbed 16 percent to $30 million and Agency slipped 26 percent from $49 million to $36 million. Year to date revenues are down compared to 2022 by 35 percent in Production to $229 million. Media is down 11 percent to $532 million and Agency slipped 6 percent to $152 million.

The stock trades below its 50 day moving average since March. Projected earnings = 8 cents for the fiscal year with a PE of 21.

The fourth quarter of the fiscal year is usually the company’s weakest, however, the rebound in revenues in the third quarter reflecting improvement in production and advertising revenues compared to the fiscal half year, suggests that the improved performance in the third quarter could carry somewhat into the final quarter and record improvement in revenues and profits.
Accordingly, ICInsider.com forecast is for earnings of $0.08 per share for the current year ending October and $0.20 for the next fiscal year, compared with 6 cents per share for the nine months to July this year and 4 cents per share for the July quarter.
The stock traded on Monday at $1.72, with a PE ratio of 21 times ICInsider.com’s latest projected earnings of $0.08 per share with the value at the higher end of the market, which currently averages PE of 10.3 times earnings.
The company generated gross cash flows of $75 million and net cash provided by operating activities was just under $31 million with net cash flows of just $2 million after paying dividends of $34 million and ended the year with cash and cash equivalent of $355 million.
The company’s finances remain b with current assets of $787 million and current liabilities of $244 million given the net working capital of $543 million, borrowings of $100 million with shareholders’ equity of $598 million.

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General Accident to jump Junior Market

September 11, 2023 by

General Accident Insurance advises that it has successfully applied for graduation of its listed ordinary shares from the Junior Market to the Main Market of the Jamaica Stock Exchange, which will take place effective September 27,

General Accident spreading wings

According to the company, since being listed on the Junior Market over ten years ago, the Company has grown its gross written premium almost seven-fold. In addition to its market leadership in Jamaica, the Company has established a regional presence in Barbados and Trinidad. The Directors of General Accident believe the successful application reflects its growth, increasing scope and ability to comply with the applicable governance standards for companies listed on the Main Market.
The company with more than $15 billion in annual premium income reported a profit of $577 million last year and $246 million for the six months to June this year up from just $41 million for the same period in 2022. ICInsider.com projected profit of more than $1 billion for 2023.
The move follows Eppley another member of the Musson Group that migrated from the Junior Market in December 2018.

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Profit surges 74% at Scotia Group

September 11, 2023 by

Scotia Group generated a huge 74 percent jump in net profit to $12.8 billion for the nine months to July 2023 over $7.3 billion in 2022. Profits for the quarter rose a much more subdued 40 percent to $5.16 billion and is up strongly from $3.68 billion in 2022 as well as form profit $4.2 billion in this year’s April quarter.
Earnings per share for the July quarter was a strong $1.66, up from $1.18 in July 2022 and $4.11 for the nine months to July this year and puts the group on track to generate income close to $6 per share for the fiscal year end in October 2023. ICinsider.com is forecasting $5.50 in earnings for the current fiscal year.
Loans grew by $40.5 billion or a solid 18.5 percent compared to July 2022, with loans net of allowances for credit losses increasing to $259.6 billion. “Our core loan book continues to perform well with mortgages increasing year over year by 29 percent, consumer loans by 10 percent and commercial loans by 20 percent,” the group informed investors in their commentary on the results.

Audrey Tugwell Henry Scotia Group’s CEO

Total revenues excluding expected credit losses for the nine months to July, grew by $10 billion to $41.5 billion reflecting an increase of 31.5 percent over the comparative prior year period. “This was primarily driven by an increase in net interest income of $7.1 billion stemming from the strong growth in our loan portfolio, higher insurance revenue as well as higher fee and commission income earned given the significant increase in transaction volumes” the directors informed shareholders in their commentary on the financial performance.
The directors hiked the dividend to 40 cents per stock unit, payable on October 19, to stockholders up from 35 cents per stock unit last paid.
ICInsider.com is accordingly placing an ICBuyRated seal of approval on the stock, which is one of ICInsider.com TOP10 Buy Rated list of stocks. Investors have hardly noticed this performance with the share price falling from $33.44 in the morning session to $33 mid morning with trading in just over 54,000 shares with the stock trading at 5.5 times earnings currently, compared with an average of 12.2 for the overall Main Market, with a huge upside potential for growth for the next 12 months or so.

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