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Dealers buy US$81m, sold US$77
July 10, 2014 by
155% profit surge at JNBS
July 10, 2014 by
Profit after tax surged 155 percent at Jamaica National Building Society, for the year to March 2014 to reach $2.3 billion from only $908 million in the previous year. The improvement came from revenues of $15.7 billion compared with $14.7 billion in 2013.
The 2013 result was negatively affected by a $830 million hit the group got from the government of Jamaica debt swap, where higher yielding bonds were exchanged for lower yielding ones, leading to a write down of market value of the bonds they held, at the time of the debt swap. But even without such one off charge, profit in 2014 would still have been up by a respectable 25.5 percent. To achieve the results, operating expenses were held to an increase of only 5.8 percent.
At the end of the March, assets climbed by 12.3 percent to $162.46 billion, from $144.6 billion at March 2013. Of the total assets, loans made up just $60 billion or 37 percent. There were mortgages approved but not yet disbursed amounting to $2.685 billion at the end of the year versus $2.344 billion at March 2013. Investment securities made up the bulk of the other assets. Equity capital stood at $26.8 billion and savers deposits at $86.6 billion.
Jamaica Broiler paid J$1.18 billion for US operation
July 8, 2014 by
Jamaica Broiler paid J$1.18 billion for England Packaging Company Inc, the group’s US acquisition last year and $111 million for the Hamilton Smoke House, a meat processing operation locally.
According to the company’s latest audited accounts, the two new operations contributed revenues of $1.78 billion and profits of $140 million to the group results for 2014. If they were owned from the start of the fiscal year, they would have accounted for revenues of $2.22 billion and profits of $202.6 million.
Segments| Best Dressed Foods contributed sales of $15.47 billion and segment profit of $1.25 billion, for 2014 fiscal year, Hipro-Ace, $8.85 billion in revenues, and segment profit of $798 million. Ethanol made a loss of $66 million from revenues of $578 million, the US operations reported a profit of $333 million from revenues of $4.7 billion and other revenues accounted for $1.25 billion and profit of $453 million.
In the prior year, Best Dressed Foods contributed sales of $13.2 billion and segment profit of $929 million, Hipro-Ace, $8.75 billion in revenues and higher segment profit of $910 million. Ethanol made a profit of $21 million from revenues of $1.73 million, the US operations reported a profit of only $21 million from revenues of $1.7 billion and other revenues contributed $920 million and profit of $335 million. Segment profit is arrived at before group charges and finance cost.
Full year|Jamaica Broiler reported lower profits for the year ended April 2014 from revenues of $30.85 billion, up from $26.5 billion in 2013, for a 16 percent revenue growth. Some of the growth in revenue came from the acquired companies but ethanol robbed the group of a larger revenue increase and better profit.
Gross profit| Gross profit increased from $5.5 billion, to $6.7 billion as gross profit margin climbed from 25.93 percent, to 27.88 percent in 2014. Gross profit grew by 23 percent but administrative cost jumped by nearly a third or $1 billion to negate the improved contribution in gross profit. In the end finance cost rose by $100 million and dragged profit down to $919 million versus $1 billion in 2013, resulting in earnings per share of 79.8 cents. The increase finance cost is due primarily to a shrinkage in cash funds of $1.14 billion and increased borrowings of $757 million.
The stock last traded at $4.57, giving it a PE of 5.7 based on the 2014 results, but IC Insider is forecasting $1.13 per shares earnings for the 2015 fiscal year, which would put the PE at just 4, based on these forecasted earnings.
Gleaner & Sagicor inside trades
July 7, 2014 by
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The latest in inside trades on the Jamaican stock exchange have been released. These traded can be great guides as to the likely fortunes of a company, this is not always the case and investors will need to make their own assessment of each trade or a series of trades together, to determine what may be about to unfold.
In the latest insider trades a Director of the Gleaner Company purchased 384,900 shares on July 4, 2014 the Company advised the stock exchange.
Sagicor Group in which there has been a series of inside trading in the stock advised that a senior manager sold 50,000 shares on June 26, 2014 under the SJ Executive Long Term Incentive Scheme.
Huge 61% JSE fee hike but stocks drop 45%
July 6, 2014 by
Investors in public listed companies on the Jamaica Stock Exchange got a huge 25 percent hike in cess they have to pay for trading on the stock exchange effective July 1, 2014. The Jamaican Stock Exchange hiked the fee investors are charged by when trading shares from 0.20 percent on each side of a trade to 0.25 percent. Since 2004 the exchange hiked fees by 61 percent while stock values are down around 45 percent since peaking in 2005.
Worse, stock investors who were getting dividends tax free, saw the re-enactment of two tax increases in the past three years. Stock market investors have gotten hit on all fronts with less income form share ownership over the past several year as they see their investment shrink in most cases. Customers of the exchange without whom the stock exchange cannot be viable, have been buffeted on all sides with no entity looking after their interest.
The fee levied on transactions across the floor of the Exchange will be increased by 0.10 percentage points or 0.05 percentage points on each side of a transaction.
The cess charge will be reflected on brokers, Contract Notes for each transaction will be 0.25 percentage points on each side of a transaction effective July 1, 2014 a release from the Jamaican Stock Exchange stated. The recent increase the second such increase from 2012 and the third since 2004.
In 2012 shareholders of public listed Companies on the Jamaica Stock Exchange started paying additional charges effective March 1, 2012 when the cess levied on transactions across the floor of the Exchange was increased by 0.0075 percentage points, or 0.00375 percentage points on each side of a transaction. The cess charge will be 0.2 percentage point on each side of a transaction. On October 1, 2004 the JSE increased its cess from 0.15625 percent to 0.19625 percent.
Big improvement in balance of payments
July 5, 2014 by
There is a major improvement in Jamaica’s Current Account deficit for the March 2014 quarter, according to a report out of Bank of Jamaica. Lower imports partially offset by lower exports and improved service inflows led to an improvement of US$301 million the deficit of US$401 million in the March 2013 quarter, resulting in a deficit of US$101 million.
“The outturn for the 2014 first quarter is the second lowest current account deficit recorded since 2007” the country’s central bank states. The improvement in the Goods Account was due to a significant decline in imports which was partially offset by decline in exports. The decline in Imports of US$281 million was primarily driven by a US$172 million and a US$133 million decline in chemicals and mineral fuels imports, respectively. The decrease in exports was primarily attributable to a US$86 million and a US$31 million decrease in chemical and crude material exports, respectively, partially offset by an increase in the exports of manufactured goods of US$21 million.
An increase of US$31 million to US$270 million in the balance on the Services sub-account resulted primarily from improvements in transportation and travel services of US$33 million and US$18 million, respectively. The improvement in transportation resulted from reduced freight costs associated with the reduced imports, while the increases in travel receipts occurred due to a 3.3 in visitor arrivals.
Carreras declared $1.34 capital dividend
July 4, 2014 by
Carreras declared a special capital cash distribution of $1.34 per stock unit to be paid on July 31, 2014 to stockholders on July 18, 2014. Ex-dividend date July 16, 2014. The funds out of which the payment is being made come from proceeds received from the liquidation of a subsidiary, pending the granting of a transfer tax exemption pursuant to the Transfer Tax Act the company said in a release to the Jamaica Stock Exchange. The special capital cash distribution will brings the total payments the company made to shareholders since August last year to $8.89.
A special capital cash distribution of $1.18 was paid in January this year, the company also paid an interim dividend of $1.75 per stock unit on June 26, $1.62 per share. On March 13 they paid a dollar per share as well as in August and November last year.
New Transport paid| New Transport paid $6.90 per share capital dividend on the June 30 to its shareholders. New transport was the company formed after Lascelles’ shares were sold to Campari in 2012. The company was formed to hold the assets that were not sold at the time with previous Lascelles’ shareholders getting shares in the company in proportion to what they held before. The company also received some distributions from Campari based on the agreement that was struck. It’s unclear if this latest payment comes from sale of the assets taken over by the company or from Lascelles.
Businesses more optimistic
July 3, 2014 by
Perception of in the most recent survey done in May of this year showed improvement in present business conditions by the business sector, compared to the previous survey done in April. The Bank of Jamaica commissioned survey, shows the index moving from 95.8 in April to 102.5 in May. The results are well off the 158 achieved in December 2011 or 135 reached in March 2013.
Expectations about future business conditions, however, were largely unchanged. Of note, both indices remained below the levels recorded in Fiscal year 2011/12, nonetheless, the perceptions of present and future business conditions have displayed a general upward trend since the April 2013 survey.
Scotia Group trades at $21.70
July 3, 2014 by
Scotia Group traded as high as $21.70 in early trading this morning as more than 1 million shares traded. Stockbroker, Scotia Investment bought the bulk of the amount that traded at $21.70 some of which were crosses. The price drifted down to $19.80 with 2,500 units, there was 100,000 units on offer at $19.80. The opened trading at $19.43. The trades helped push the all Jamaican index up by 1,658 points to 79,177.73 at 10.12am.
other noticeable trades were 500,000 Sagicor Group shares at $8.80 and Pan Jam 100,000 units, at $49.
Lasco Distributors prevails against Pfizer
July 3, 2014 by
Lasco Distributors has prevails against Pfizer in a law suit that Pfizer brought against Lasco. The local company had won the case in the local courts but Pfizer appealed the judgement to the Privy Council in 2012.
Lasco Distributors has now advised, that the Privy Council has dismissed the Appeal by Pfizer Limited and has affirmed the decision of the Court of Appeal.
“Lasco Distributors Limited’s (LDL) objection to grant Pfizer Limited a stay of the judgment of the Court was accepted by the Court of Appeal. This means that LDL is permitted to continue to trade in the product Las Amlodipine which it had been barred from distributing and to proceed to have the Supreme Court assess the damages caused by the issue of the injunction and to tax the cost payable by Pfizer,” the company reported in 2012.
Lasco ceased selling Las Amlodipine by an injunction granted in March, 2005, however, Lasco contended that under the provisions of the Patent Act of Jamaica, the Jamaican Patent was not in force when the Company started to market its own product, Las Amlodipine since an earlier patent No. 18266 granted to Pfizer in Egypt had expired in March 1997.
The matter was heard in the courts which found that the case for Pfizer for an infringement of Jamaican Patent No. 3247 failed. The court gave judgment for the Company with costs to be agreed or taxed and directed that there should be an enquiry as to damages suffered by the Company as a result of the interlocutory injunction granted to Pfizer under their undertaking in damages.
It is the expectation of the Company, based on legal advice it has received, that its lost sales of the product to date (estimated to be $400 million) are likely to be recovered in the event that it succeeds in this matter but it is difficult to quantify the amount of damages that could potentially be awarded to the Company as they will continue to accrue until the matter is decided. With the passage of time, the cost of money in Jamaica since 2005, lost sales from 2005 until they were permitted to start selling in 2012 and legal cost involved in the case Lasco distributors should end up with well over $1 billion from the case.
