Main Event Q3 stunner

September 20, 2022 by

Main Event put in a stunning performance in the July quarter, this year with revenues rising 147 percent to a quarterly record of $601 million from just $243 million in the 2021 quarter, and profit surging 432 percent to $124 million from just $2 million for the 2021 quarter and investors immediately welcomed the good news by driving the stock up $8.57, the day the news broke on the JSE, trading in the halted in the first hour of trading on Thursday but it has since cooled to be trading around $8.

Main Event revenues growing nicely profit profit jumps.

The third quarter results helped push performance for the nine months, with revenues climbing 85 percent to $1.094 billion from $501 million, with profit ending at $104 million for the nine months, for a 332 percent increase from just $9 million in 2021. “The improved performance this quarter is underpinned by increased activity in our core business. The entertainment industry has seen a strong return to outdoor events and lifestyle experiences after a 2-year hiatus. The quarter is a historic one and reinforces our optimism for a sustainable shift following the Pandemic,” Chairman, Ian Blair and CEO Solomon Sharpe advised investors in their jointly signed report that commented on the results.
Gross profit rose 95 percent in the July quarter to $298 million from $163 million in 2021 and rose
48.6 percent from $344 million in 2021 to $511 million in the nine months to July this year. Gross profit margin ended the July 2022 quarter at 49.5 percent, down from 62.9 percent in 2021. For the nine months to July gross margin ended at 45.7 percent versus 58 percent in 2021.
Operating expenses rose 35 percent to $156 million, from $115 million in the July quarters and for the nine months, it rose a more moderate 19 percent to $3884 million from $322 million in 2021. Finance costs for the nine months fell from $12.7 million to $9.6 million.
Earnings per share for the latest quarter came out at 41 cents and 35 cents for the nine months.
The company generated $222 million in gross cash inflows before working capital changes and used up all the inflows for working capital needs of $200 million repaid loans amounting to $50 million and expended $33 million on the purchase of fixed assets.
The healthy top line performance resulted in receivables climbing from $150 last year July to 404 million at the end of July while cash on hand and bank slipped from $154 million to $132 million.
Borrowings declined from $206 million to $102 million, while payables rose from $100 million to $164 million. Shareholders equity rose from $543 million at the end of July last year to $654 million.
While the fourth quarter tends to be the weakest, investors should not bank on a repeat of the third quarter, but the 2023 fiscal year could be exciting.
ICInsider.com forecast is for earnings per share to end up at 45 cents for the year to November this year and 90 cents next year, putting the PE at 18 and 9 times 2023 earnings. The company could benefit from above average growth flowing from the full opening of the economy as was the case in the July quarter.

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

Sales jump 31% in Fontana’s Q4

September 1, 2022 by

Fontana is quietly making significant headways in a Jamaican economy that suffered over the last twelve months to June with various dislocations resulting from measures implemented to control the spread of the Covid19 virus. In the financial year to June 2022, revenues climbed a respectable 23 percent to $6.34 billion, from $5.15 billion in 2021 and delivered a 19 percent rise in profit to $606 million.

Artist impression of the 20,000 sqft Portmore store set for opening in early summer 2023.

Sales rose a robust 31 percent in the fourth quarter, well ahead of the nine months’ inflows of 21 percent, but the cost of sales grew even faster at 41 percent, resulting in gross profit rising 16 percent, similar to the increase in the nine months. Profit margin fell and remained in the region of 35.8 percent for the June Quarter and for the year to March but is well down on the 40.5 percent achieved in the June quarter last year.
In an interview with the company’s chairman, Kevin O’Brien Chang suggests that sales would have been affected by specials in the period and the inability to recover increased costs associated with logistical dislocation of sourcing and receiving goods.
“We are very pleased with the trend in sales currently”, Chang informed ICInsider.com in response to whether they could maintain the 31 percent fourth quarter revenue growth in the future for the current fiscal year.
Profit in the fourth quarter rose a substantial 32 percent to $192 million from $146 million, while the full year results increased 18 percent to $606 million from $512 million in 2021.
Administrative and other expenses rose 20 percent in the fourth quarter to $380 million and 15 percent for the fiscal year, to $1.4 billion. Marketing and sales expenses slipped 7 percent in the final quarter and rose 14 percent to $64 million for the year. Finance costs climbed 12 percent in the quarter to $204 million from $182 million in 2021 and rose 17 percent from $648 million to $761 million for the year.
The company continues to be in a financially healthy position. Gross cash flow brought in $840 million, up from $713 million in 2021. Working capital needs and acquisition of fixed assets utilised $204 million. Dividend payment used up $250 million. Loans and lease payments consumed $320 million, but the proceeds of a $492 million bond resulted in an increase of $632 million in cash.
Shareholders’ equity rose to $2.16 billion from $1.8 billion at the end of June 2021. Long term borrowings ended at $1.5 billion and short term borrowings at $143 million at the end of June this year.  Current assets ended the period at $2.7 billion, including inventories of $992 million compared to $836 million in 2021, trade and other receivables of $195 million and cash and bank balances of $1.5 million. Current liabilities ended the period at $830 million. Net current assets ended at $1.86 billion.
The Portmore store is estimated to be around 20,000 square feet, with an opening around the end of the June 2023 quarter, Chang advised ICInsider.com. The store will be leased as is the case of most stores the company operates.
Earnings per share came out at 49 cents for the 2022 fiscal year. ICInsider.com forecasts 80 cents per share for the fiscal year ending June 2023, with a PE of 11 times the current year’s earnings based on the price of $9.06 the stock traded at on the Jamaica Stock Exchange Junior Market. Net asset value is $1.49, with the stock selling at six times book value.
Fontana owns and operates a chain of pharmacies in Kingston, Montego Bay, Mandeville and Och Rios. Fontana is one of the 10 Junior Market ICInsider.com stocks to hold for 10 years.

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

Fabulous first quarter results

August 31, 2022 by

Several Jamaica Stock Exchange listed companies reported record profits for 2022 as net income for all the companies surged 30 percent after taxation in the first quarter this year over in the 2021 first quarter, with data released by listed companies showing revenues grew a healthy 21 percent.
The final numbers include results of Guardian Holdings, and Massy Holdings, two companies with primary listings in Trinidad and Tobago, and the recently listed Dolla Financial. Excluding results for the two Trinidadian based companies, profit rose 39 percent for the rest, from a 27 percent rise in revenues, the data reveal.
Profits exclude significant exceptional one time items and do not include other comprehensive income that companies in the financial sector incurred following unrealized losses in their investment portfolio flowing from increased interest rates in 2022.
Companies that suffered losses or sharply reduced earnings in the 2021 period are contributing to the strong rise in overall profit, now recovering in 2022. The companies are also benefiting from easing restrictions placed on Jamaicans and a strong rebound in the critical tourist arrivals.
The results show that 65 of the 95 listed companies posted positive results and 30 recorded declines. The results show a number of the companies rebounding sharply from declines in their fortunes in 2020 and 2021, with a number of them indicating a significant improvement and delivering record profits due to cost reduction effected in the downturn.
ICinsider.com showcases some outstanding performers and provides a complete listing of all companies.
Revenues at Dolphin Cove surged 247 percent to J$397 million, with profit rising 619 percent to J$123 million but the company’s good performance carried over into the second quarter, with revenues climbing 97 percent to $650 million and profit before tax rising 29 percent to J$259 million over the 2021 June quarter. Dolphin Cove benefited from the near recovery of the tourist trade in the June Quarter.
Caribbean Producers’ revenues rose 123 percent to J$4.4 billion and churned up a 275 percent increased profit to $244 million from a loss of $140 million in 2021. CPJ is benefitting from a combination of increased tourist arrivals in Jamaica and St Lucia and a significant reduction in operating costs. The company’s June results are pending.
Fosrich revenues surged 64 percent to $900 million, coming primarily from expansion into manufacturing of PVC pipes and some other new areas and spawning a 314 percent rise in profit to $159 million. The second results continue the positive first quarter trend, with revenues up 65 percent to $898 million and profit rising 83 percent to $139 million from $76 million in 2021.
Jamaica Producers’ revenues rose 26 percent to $6.9 billion. Profit jumped 58 percent to $406 million, with second quarter revenues exceeding that of the first quarter and increasing 26 percent over 2021 second quarter to $7.5 billion, with profit rising 30 percent to $458 million as associated companies delivered a significant increase in profit of $191 million versus just $48 million in 2021.
Jamaica Broilers’ revenues rose 25 percent to $20 billion and profit jumped 94 percent to $1 billion. The company will report the next set of results in September.
Revenues at NCB Financial Group grew 39 percent to $98.4 billion and delivered a 295 percent increase in profit to $7.8 billion from $2 billion. In the June Quarter, revenues rose 17 percent to $89 billion from $76 billion and profit jumped 104 percent to $8.2 billion from $4 billion in 2021.
Mayberry Investments enjoyed a major reversal of investment losses incurred in 2021. They moved revenues from a negative $110 million to a positive $1.36 billion in the first quarter this year for a 1,335 percent turnaround. Profits also recorded a hefty 109 percent swing, from a loss of $331 million in 2021 to a profit of $692 million. For the three months to June, revenues surged to $6.2 billion from $3.1 billion in 2021, primarily due to a jump in investment gains from $3 billion to $5.4 billion in 2022. Profit attributable to shareholders of the company climbed from $1.9 billion to $2.5 billion.

Mayberry Ithe lead broker.

Revenues at Mayberry Jamaican Equities recovered to $979 million in the March quarter from a negative inflow of $601 million, representing a 263 percent improvement, with profits jumping 720 percent to $1.36 billion from a loss of $166 million in 2021. June 2022 quarter ended with revenues at $5.6 billion and $5.3 billion in profit compared with revenues in 2021 of $2.5 billion and profit of $2.4 billion.
Productive Business Solutions saw an 18 percent rise in revenues to J$6 billion and profit rising 35 percent to $241 million from $178 million in 2021. Revenues climbed 69 percent to JS$14.1 billion and profit rose from a loss of $82 million to a profit of $264 million.
Revenues at Sagicor Group grew just 3 percent to $23.76 billion, but profits jumped 38 percent to $4 billion from $2.9 billion in 2021. In the second quarter, revenues slipped marginally to $25 billion from $25.2 in 2021, with profit attributable to shareholders of the group coming in 15 percent higher at $2.2 billion, from $1.94 in 2021. Other comprehensive income moved from a positive $1.6 billion in the June 2021 quarter to a loss of $7.3 billion for the June 2022 quarter, with year to date loss of $12.6 billion versus a $3.2 billion loss in 2021.
Stationery and Office Supplies revenues were up 36 percent to $428 million, while profit jumped 90 percent to a record $105 million. The good first quarter performance carried over into the second quarter to June with revenues slightly behind that of the first quarter to end at $420 million, up 84 percent above $238 million in 2021 and finished with a profit of $70 million. The first quarter profit was boosted by a $23 million gain on the sale of a property.

Sagicor Group jumped $8 on Monday to a record close of $73.

Supreme Ventures’ revenues rose 19 percent to $12.7 billion and profit jumped 68 percent to $997 million from $592 million. In the June quarter, revenues rose 17.6 percent to $12.76 billion and a flat profit of $630 million.
Some of the performances of individual companies reflect themselves in the sectors in which they operate. Financial Services, with 20 companies, delivered a 41 percent revenues increase to $25.3 billion and a 10 percent increase in after-tax profit to $8 billion. Distribution revenues climbed 29 percent to $33.6 billion and profit rose 52 percent to $2.3 billion from just $1.5 billion last year.
Conglomerates were disappointing, with no profit growth of $5.8 billion from a 13 percent rise in revenues to $113 billion. Manufacturing managed a 22 percent rise in profit to $4.8 billion from a 23 percent increase in revenues to $55 billion from $45 billion in 2021.
Media with just two entities delivered revenues of $1.75 billion, up a mere 4 percent year over year but grew profit an attractive 68 percent to $152 million.
Revenues for the Insurance group rose just 3 percent to $86 billion and delivered a 17 percent increase in profits to $8.2 billion.
Revenues for the Entertainment companies rose 23 percent to $13.5 billion, with profit increasing 130 percent to $1 billion, with Supreme Ventures dominating with profit jumping 68 percent to $996 million.
Real Estate saw a 20 percent drop in profit from a 54 percent rise in revenues to $3.46 billion, delivering a profit of $1.27 billion.
The Transportation sector saw a 71 percent increase in revenues to $10.6 billion and delivered a 38 percent increase in profit to $1 billion.

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

Wisynco spending $5B on plant expansion

August 30, 2022 by

Wisynco is moving to expand the production capacity during Fiscal 2023 and has deposited $600 million for new equipment, Andrew and William Mahfood advised investors in the director report accompanying the 2022 audited accounts. The expansion will cost around $5 billion and is likely to come on stream in the fourth quarter of the current fiscal year, the chairman William Mahfood states in response to ICInsider.com question.  

Wisynco Group

Following a year of strong revenue growth, the company saw an acceleration of revenue growth in the final quarter of Fiscal 22 rising 30 percent over the June quarter of 2021 as it helped to deliver a 22.7 percent increase in revenues for the year to $39.1 billion from $31.8 billion of the prior year.  the rebound in the economy with the removal of restrictions and the strong rebound in tourist arrivals, a sector to which it sells around 15 percent of its products would have been positive development for the group.
The company states that “during the final quarter we encountered supply chain issues in selected key raw materials some which require special transportation equipment which impacted our production and consequently dampened our revenue levels.”
Profit before Taxation for the year was $4.9 billion or 31.4 percent more than $3.8 billion in 2021. Net profit after taxes for the year rose 31.6 percent to $4.1 billion from $3.1 billion in the prior year. Earnings per share for the year was $1.08 per share or 31.7 percent greater than the 82c per share for the prior year.
Gross profit for the year was $13.25 billion 19.2 percent greater than the prior year whilst Gross Margin was 33.9 percent compared to 34.9 percent for the 2021 fiscal year. Management cited higher energy costs resulting from downtime at the LNG plant and higher input costs on certain raw materials for the reduction in Gross Margin when compared to the prior year.
Selling and Distribution costs rose 15.4 percent over the 2021 fiscal year to $7.1 billion and Administrative expenses rose 1.5 percent for the year of $1.44 billion up from the $1.42 billion of the prior year.

Wisynco operates at two main locations situated in St. Catherine: White Marl and Lakes Pen. Manufacturing takes
place at White Marl, while Lakes Pen carries out distribution activities. Total square footage with factory, storage and
offices between the two locations is approximately 530,000 square feet.

Finance costs slipped to $149 million from $153 million in 2021 and includes foreign exchange losses for the year of approximately $34.7 million which compares to foreign exchange gains of $70 million recognized in other operating income for the prior year. Interest income improved over the prior year by approximately $108 million due to higher rates being earned on deposits.
Gross cash flow brought in $5.9 billion but growth in work in capital saw it falling to $4 billion and after repaying loans of $800 million and paying dividends of $1.5 million a net flow was just $298 million. At the end of December, shareholders’ equity stood at $17.8 billion with long term borrowings at $746 million and short term at $820 million. Current assets ended the period at $17.8 billion inclusive of trade and other receivables of $4 billion, investments, cash and bank balances of $8 billion. Current liabilities ended the period at $7.3 billion, with net current assets at $10.5 billion
Earnings per share came out at 1.08 cents for the year to date. Investors should accumulate this stock for growth in profit for 2023 and beyond.
ICInsider.com forecasts $1.75 per share for the fiscal year ending June 2023, with a PE of 10 times the current year’s earnings based on the price of $17.45 the stock traded at on the Jamaica Stock Exchange Main Market. Net asset value is $4.78 with the stock trades at 3.6 times book value.
The company paid two dividends amounting to 40 cents per share for the year representing an increase of 33.3 percent over the 30c per share for the 2021 fiscal year.

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

Has Purity broken negative spell?

August 21, 2022 by

For many investors, Consolidated Bakeries wasted the ten years of tax holidays garnered in listing on the Junior Market back in December 2012 as profits pretty much stagnated at very low levels and moved into losses occasionally. But those dark days may well be behind, if recent quarterly results to June are to be believed.

Consolidated Bakeries Purity brand

The improved results show up in a strongly transformed financial position resulting in an enhanced working capital position even as sales surged, a buildup of cash and a reduction in borrowed funds.
Revenues climbed 30 percent in the March quarter, from $291 million last year to $378 million and rose a more robust 42 percent in the June quarter to $342 million from $241 million in 2021. For the six months, revenues are up 35 percent to $720 million from $532 million in 2021, while gross profit rose 41 percent to $292 from $207 million. At the same time, in the recent past, gross profit margin tended to hover around 39 percent, rose to 42 percent in the second quarter this year, from 38 percent in 2021.
Profit before tax rose 61 percent in the first quarter to $14.5 in 2022, from $9 million last year and is up 200 percent in the second quarter to $13.5 from a loss of $13.4 last year. For the half year, pretax profit surged 735 percent to $28 million from a $4.4 million loss in 2021.
Purity, as the company is more popularly known, generated a loss in other comprehensive income from investments of $2.65 million for the quarter and $3.57 for the half year, reducing the overall profits to $10.8 million for the quarter and $26 million for the half year.

Anthony Chang, Managing Director of Consolidated Bakeries

Administrative and other expenses rose 11 percent to $66 million in the quarter and increased 18 percent in the half year to $139 million. Marketing and sales expenses increased by 33 percent to $50.5 million in the June quarter over 2021 and are up 30 percent to $97 million for the six months of 2022. Depreciation rose 10 percent in the June quarter to $8.6 million and 8 percent for the half year to $17 million. Finance cost jumped sharply in the quarter to $7 million from $2.5 million in 2021 and from $6.3 million to $9.4 million for the six months.
The company’s finances are looking much better at the end of June than in 2021, which is undoubtedly helped by management’s renewed focus on these areas. Operations for the half year generated gross cash flow of $47 million and to $77 million with changes in working capital but slipped to $56 million after receiving an $11 million loan and spending $29 million on the purchase of fixed assets. Shareholders’ equity stood at $708 million, while Long term borrowings ended the period at $167 million and short term loans at $42 million, representing a reduction from December 2021 of $25 million and cash and bank balances rose to $82 million, up from $62 million at the end of December last year. Current assets ended the period at $295 million, with trade and other receivables at $105 million, a reduction from $115 million at the end of June 2021 and $110 million at the end of December 2021, even as sales surged. Inventories doubled over June 2021 from $41 million to $81 million and are up from $67 million at the end of December. Current liabilities ended the period at $181 million, up from $175 million at the end of December but down from $190 million in June 2021. Net current assets ended the period at $115 million and are well up on the $69 million at the end of June 2021 and $93 million in December last year.
The big concern in the past was the ability of the company to hold on to the profit made in the first six months in the year’s second half. This time seems set to deliver to the upside as revenues benefit from increased volume sales as the company makes headways into new areas and some new products. Anthony Chang stated that while new products helped sales, in some cases, traditional products found new takers in regions of the country where demand was not as strong in the past.

Consolidated Bakeries Miss Birdie Easter bun.

According to Chang, they are now benefiting from some personnel changes that are delivering improved results. He also indicated expansion of the distribution channel into smaller stores while consolidating the business in the bigger stores. They also placed focus on the cost by employing a cost accountant. The company still faces challenges, Chang informed ICInsider.com; most flows from the economic environment businesses face locally with the supply chain for raw materials for production.
Retooling played a vital role in the gains, but Chang says this is a work in progress. According to him, bread at one stage in the past accounted for 90 percent of sales, was in direct competition with the market leader and had a low profit margin, but it took time to make the shift as new machinery was needed to effect the change to new products, that needed machinery for packaging these products. The company has been adding to fixed assets as a part of the drive to have suitable machines and in quantity required to churn out new products.  In the 2022 half year, $29 million was spent on fixed assets, up from $21 million in the six months to June last year and $33 million for the financial year 2021.
As Chang indicated, July is showing growth in sales over last year, but while he is unsure where they will end the year, he is cautiously expecting some growth in the rest of the year.
Analysis done by ICInsider.com shows that over the past two years, the first quarter has had the highest revenues, with the second quarter 82 to 90 percent of what the first quarter generates. This year was somewhat different at 90 percent, no doubt due to Easter falling in the middle of April, that would have resulted in more Easter bun sales coming in April than in 2021 and moved the percentage from 83 to 90. The September quarter revenues year were 111 percent of the second quarter and was up from 93 percent in 2021, with December at 105 percent of 2021 September and 99 percent in 2020. Based on the above, ICInsider.com projects this year’s revenues at $1.4 billion, with a profit of $49 million for earnings per share of 22 cents. If achieved, the PE ratio currently would be 6.8, based on the price of $1.49, the stock traded on the Jamaica Stock Exchange Junior Market on Friday. The numbers pushed Consolidated Bakery in the lower end of ICInsdier.com TOP10.

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

Fesco crushes expectations

August 13, 2022 by

FESCO recorded stunning first results that crushed expectations, with revenues surging 238 percent to $6.46 billion, up from $1.9 billion in 2021 and drove gross profits up a robust 294 percent higher at $216 million for the quarter from $161 million year over year. June quarter gross profit came in 36 percent more than the $137 million generated in the March quarter this year from revenues for the quarter of $4.76 billion.
The Company’s gross profit for the quarter amounts to 55.2 percent of the gross profits achieved for the fiscal year ended March, exceeding the entire year. Gross profit margin jumped sharply from 2.87 percent in 2021 to 3.36 percent in the June quarter this year. The Company benefitted from two new service stations that came on stream during the period compared to the 2021 fiscal period, with the popular Beachwood avenue station owned and operated by them.
For the quarter ended June 2022, profits after taxes surged 280 percent to $152 million from just $40 million in 2021, with indications that the six months result should see profits exceeding the $258 million realized in 12 months to March this year.
Operating and administrative expenses rose 216 percent to $65 million in the quarter, with the bulk of the increase being direct operating costs for the self-owned run gas station.
Gross cash flow brought in $158 million, but $358 million was spent for the addition of fixed assets and resulted in net cash outflows of $221 million, thus reducing the $1.1 billion at the start of the fiscal year to $900 million at the end of the quarter.
Current assets ended the period at $1.64 billion, including trade and other receivables of $468 million, cash and bank balances of $903 million. Current liabilities stood at $1.3 billion, with Payables at $947 million, current portion of loans at $345 million, and long-term loans at $908 million.
Shareholders’ Equity stood at $922 million at the end of June, or 37 cents per share and the stock trades at a premium of 1,334 percent above net asset value.

Fesco Beachwood Avenue station

Earnings per share came out at 6 cents for the 2022 quarter, up from 1.65 cents in 2021. IC Insider.com is forecasting 26 cents per share for the entire year bringing the PE ratio to 20 times earnings and is now in line with the market at the last traded price of $5.29 on the Junior Market of the Jamaica Stock Exchange on Friday. The Company will pay 16 cents per share dividend on October 28.
The Company added the 17th service station under its brand in St Elizabeth, which will add to future revenues and profits. According to the directors’ report,” the Company continues to make investments in real assets and equipment to support expanding its service station businesses, its industrial client business, as well as its promised entry into the LPG industry.”

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

220% jump in Guardian Q2 profit

August 8, 2022 by

Profit at Guardian Holdings for the June Quarter jumped a robust 220 percent to TT$256 million from only $80 million in 2021, with the half year moving up by a substantial 70 percent from $256 million to TT$436 million, with the EPS coming out at TT$1.88 or J$43 for the half year and TT$1.10 for the three months.

Guardian Holdings hit a 52 weeks’ high of $35.25 on Tuesday.

Guardian did not report the earnings per share for the June quarter, information that all Jamaican listed companies have to report. The other element not reported on are the number of shares issued that would give relevant information for readers of the financials. ICInsider.com projects earnings of TT$3.88 or J$90 for the whole year.
The group suffered losses on long term investment instruments amounting to $400 million for the half year, which resulted in a profit to shareholders of just $73 million, the loss in the quarter was $205 million, that helped plunge the profit to $83 million. Most of the investment losses would have emanated from the rise in interest rates and fall in the value of equity investments. They may not recur to the same degree in the future as such profit from regular operations should dominate in valuing the stock.
The big surge in profit before other comprehensive income flows from a meagre 5 percent rise in net premium income for the six months to $2.37 billion and for the quarter to $1 billion, but net results on Insurance Activity jumped 63 percent to $681 million while the quarter produced a 99 percent rise to $415 million. Net Investment Income brought in 26 percent less in the half year to $570 million from $770 million, with the quarter dropping 39 percent to $265 million and resulted from a 5 percent rise in income for the six months to $1.33 billion and for the quarter to $715 million from $682 million.
Operating expenses fell 3 percent in the half year to $742 million and 11 percent in the quarter from $460 million to $410 million. Finance Changes were flat at $104 for the six months and $52 million for the quarter.
The segment report shows the profit for the Life health and pension division enjoying a 4.8 rise in underwriting revenues to $1.9 billion, with profit climbing 64 percent to $492 million. The general insurance division saw underwriting revenues rising just 2 percent to $649 million, with profit falling from $137 million to $101 million.
Shareholders’ equity stood at $4.9 billion with total assets of $35 billion. Major assets include Investment property valued at $1.65 billion, Investment securities of $23 billion, loans and receivables of $2.44 billion, and Cash and equivalent at $3.9 billion. The significant liabilities include Insurance contracts of $19.6 billion, financial liabilities presumable loans of $3.5 billion and third party investment liabilities at $5 billion.
The price of Guardian Holdings jumped a sharp 29 percent to J$650 on limited volume on Friday on the Jamaica Stock Exchange with a PE ratio of 7. There are less than 1,000 shares offered for sale in the Jamaican market. It traded at TT$26.50 in Trinidad on Friday at a PE of 6.8. The stock is severely undervalued.

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

First quarter profits surge 39%

August 1, 2022 by

Profit in the first quarter of this year surged 39 percent over the same period in 2021 for all listed companies on the Jamaica Stock Exchange, data released by the companies show a 21 percent increase in revenues.
The final numbers include results of Guardian Holdings, Massy Holdings two companies with primary listings in Trinidad as well as the recently listed Dolla Financial. Excluding results for the two Trinidad based companies, profit rose 49 percent for the rest, from a 26 percent rise in revenues.
Profits exclude exceptional one off items and do not include other comprehensive income. NCB Financial Group, JMMB Group and Scotia Group suffered major unrealized losses in their investment portfolio as a result of increased interest rates in 2022 while the two Mayberry companies saw a major reversal of investment losses incurred in 2021. The investment losses for the banking groups are shown in other comprehensive income and if included reduces the strong operating profit substantially.
Contributing to the strong rise in overall profit are companies that suffered losses or sharply reduced profits in the 2021 period and are recovering in 2022 from an economy that was mired in restrictions on trade within the local economy.
The results to date show the educational sector with just two companies growing by 1,880 percent but with a mere $12 million in profit, with revenues that grew 155 percent to $107 million. Medical & Pharmaceutical revenues rose a strong 30 percent to $1.43 billion with profits climbing 80 percent to $167 million. The  Restaurant sector’s profit rose 100 percent to $342,000, up from a loss of $184 million in 2021 as revenues rose 240 percent to $691 million. Banking profit is up 104 percent to $12.5 billion, from a 33 percent rise in revenues to $116 billion, with all the gains in profit flowing from NCB.
One of the more outstanding segments was Financial Services, with 20 companies delivering a 30 percent revenue increase to $57 billion and a 46 percent rise in after tax profit to $16.3 billion. Distribution revenues climbed 29 percent to $33.6 billion and profit rose 52 percent to $2.3 billion from just $1.5 billion last year.
Conglomerates were disappointing, with no growth in profits of $5.8 billion from a 13 percent rise in revenues to $113 billion and Manufacturing managed a 22 percent rise in profit to $4.8 billion from a 23 percent increase in revenues to $55 billion from $45 billion in 2021.
Media with just two entities delivered revenues of $1.75 billion up a mere 4 percent year over year but grew profit an attractive 68 percent to $152 million.
Revenues for the Insurance group rose just 3 percent to $86 billion and delivered a 17 percent increase in profits to $8.2 billion.
Revenues for Entertainment companies rose 23 percent to $13.5 billion with profit rising 130 percent to $1 billion with Supreme Ventures dominating with profit jumping 68 percent to $996 million.
Real Estate saw a 20 percent drop in profit from a 54 percent rise in revenues to $3.46 billion delivering a profit of $1.27 billion.
The Transportation sector saw a 71 percent increase in revenues at $10.6 billion delivering a 38 percent increase in profit to $1 billion.

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

SOS dividend consideration sends stock price flying

July 19, 2022 by

Stationery & Office Supplies announced that the board of directors will consider the payment of a dividend at a meeting to be held on August 9, 2022 and with the stock price closing at a 52 weeks’ high of $15 and seems to be heading higher.
The company last paid a dividend of 16 cents per share on December 7 last year. The early announcement caught the market by surprise as investors bought 303,359 shares up to a 52 weeks’ high of $15, with the stock closing with the bid at $15.84 and the offer at $17.90 and gaining 135 percent for the year to date.
The likely early payment is signalling that the company could be switching to twice a year payout as well as the fact that the good results evident in the first quarter is continuing into the rest of the year.
Some observers are of the view that the dividend announcement by itself was unlikely to move the stock price by the amount in today’s trading and think investors are sensing a stock split.

SOS to make early dividend payout

With the stock price having risen and seems set to go higher the price is clearly entering into a split territory, considering that there are just 250 million shares issued with the top 10 holdings accounting for 90 percent and leaving only about 25 million units that are likely to trade short term. The possibility of a stock split coming up for discussion at the meeting considering a dividend seems probable but such an action if it were to occur would have to be communicated to the Jamaica Stock Exchange ahead of any meeting at which it was to be approved.
The March quarter profit rose 90 percent to $105 million over that for 2021 and ICinsider.com forecast earnings of $1.70 for the current year.

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

Dolla profit jumps sharply over 2021

July 15, 2022 by

Dolla Financial ended the second quarter with a profit after tax of $59 million, similar to the first quarter after revenues rose from $141 million in the first quarter to $157 million. Interest expenses increased to $13.7 million from $12.8 million in the March quarter. But it is an $18 million jump in Administrative expenses held back profit from exceeding the first quarter numbers.
Roughly $18 million in increased administrative costs relates to the listing of the shares on the stock exchange and some other expenses associated with the IPO  that are booked as a part of Administrative. ICInsoder.com gathers that cost to fall back to the $60 million level in the third quarter.
Year to date revenues are $298 million versus $108 million in 2021, while the June 2021 quarter delivered revenues of $54 million with a small profit of $9 million.
The third quarter should see a notable increase in loan income, with the IPO proceeds would only have been available in June, with the IPO closing on May 27. As such, revenues should climb by around $25 million in the September quarter and profit should hit $100 million for the quarter.
The balance sheet shows loans of $1.05 billion, up from $870 million at the end of March, Cash stood at $81 million and shareholders’ equity rose from $373 million to $653 million, reflecting the new capital injection from the IPO as well as the profit for the quarter. ICInsider.com understands that they have lent out all the funds received and are preparing to float a billion dollar bond to facilitate expansion. Loans payable amount to $429 million at the end of June, slightly down from the $452 million at the end of March but well up on the $296 million in June 2021.
The company plans to open a branch in Portmore in the current quarter and another in Guyana.
Earnings per share for the quarter was 2 cents and year to date just over 5 cents. ICInsider.com forecasts 20 cents per share for the current year and 35 cents for 2023.
Dolla Financial traded on the Junior Market at $2.87 after investors swapped 643,451 shares.

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