Main Event growing for higher profits

June 20, 2019 by

Main Event revenues profit growing nciely.

Growth in revenues while not an exact proxy for increased profits is often a very good indicator of greater gains ahead. That may be exactly what is happening at the Junior Market listed Main Event.
That was the opening comments of IC Insider’s reporting on the nine months results for 2018. Nearly one year on, Main Event is quietly forging ahead with strong gains in sales and profit for the quarter ending April this year and slightly less growth for the six months period. The 2019 performance outdistance the modest rise in both revenues and profit for 2018.
Revenues for the July quarter last year, surged nearly 26 percent to $364 million, but profit fell 7 percent to $24.5 million and for the nine months to July, profit was up just 4 percent to $105.5 million flowing from a 13 percent rise in revenues to $1.07 billion.
For the current fiscal year, profit climbed 29 percent for the quarter to $62 million from $48 million in 2018. For the six months to April, profit rose a more moderate 15.4 percent to $92 million from $81 million in 2018.
Sales revenue rose 29 percent for the quarter, to $438 million from $341 million and is up 27.5 percent for the year to date, to $896 million from $702 million in 2018. Management in their report on the results states that, “revenue growth reflects higher volumes in the company’s core business as well as success with our new products while 13 percent of revenues or $118 million is attributed to the M-Style products and our presence in the West”
Gross profit grew much slower than revenues in the April quarter increasing 14.8 percent and 16.7 percent for the half of the year. Gross profit margin is still a healthy 47.5 percent in the latest quarter and 45.3 percent in the 2018, for the year to date period.

Three directors of Main Event, including the mentor who is respossible to ensure compliance with teh JSE rules.

Administrative and general expenses rose 14 percent to $116 million in the quarter and increased 23 percent in the six months period to $246 million. Marketing and sales expenses declined by from $7.7 million in the prior year’s quarter to $2.6 million in April 2019 and declined from $15.4 million in the six months period in 2018 to $8.6 million in 2019. Depreciation cost rose from $45 million for the half year to $55 million in 2019. Finance cost rose in the quarter, to $5.6 million from $5 million in 2018 and from $8.5 million to $9.4 million for the six months period.
Earnings per share came out at 20 cents for the quarter and 31 cents for the half year. Last year, figures for the nine months showed signs that profit would end up in the 40 cents region but foreign exchange and increased bad debt provisions resulted in a loss in the final quarter and earnings of just 32 cents per share. IC Insider.com is forecasting earnings around 75 cents the current fiscal year ending October and $1.50 per share for the 2020 fiscal year, giving it a PE of around 7 times 2019 earnings and just 3 times 2020 projected earnings.
Gross cash flow brought in $148 million but growth in receivables, inventories, addition to fixed assets offset by loan inflows and reduced payables pushed net cash intake down and liquid funds of $59 million at the end of April. At the end of April, shareholders’ equity stood at $616 million with borrowings at $295 million. Net current assets ended the period at $260 million inclusive of trade and other receivables of $354 million, cash and bank balances of $98 million. Current liabilities stood at $214 million at the end of April.

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

Scotia Group to pay $7.6b in dividends

June 13, 2019 by

Scotia to make big payout.

Scotia Group will be paying a whopping $7.6 billion in dividend in July. According to the latest quarterly report by the banking group the directors approved an interim dividend of 51 cents per share and a special dividend of $1.94 per share.
The directors state that the special dividend is to payout years of accumulated surplus that has built up over the years. The payments comes against the drop ground of net profit for the April quarter coming in a $3.295 billion versus $3.3 billion in 2018 and $5.6 billion compared to $6.76 billion year to date in 2018 with the latter being boosted by one off gain from sale of a subsidiary of $753 million.
The group reports an eleven percent growth in its loan portfolio to reach $189 billion from $171 billion in April 2018, but just 3.4 percent since October last year.
The decision to make the special payment is not surprising with the sharp cut in cash reserves requirement at the country’s central bank and the low levels of interest rates that currently prevail in the economy.

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

10 unbroken JSE main market record close

June 6, 2019 by

NCB Financial traded at a record high of $184.85 on Thursday.

The Jamaica Stock Exchange main market ended its ninth consecutive day of trading with another record close on Thursday, as investors pushed JMMB group to a record $42.50 and NCB Financial to a record high of $184.85, before they both pulled back at the close.
The JSE All Jamaican Composite Index jumped 4,510.51 points to end at a record close of 484,922.56 and the JSE Index climbed 4,099.18 points to record close of 441,656.26.
At the close market activity, on the main and US markets, the prices of 11 securities advanced, 12 declined and 12 traded firm, as a total of 35 securities traded, compared to 33 on Wednesday. Market activity ended with 18,955,666 units valued $147,418,895, in contrast to 27,861,999 units valued $644,155,189 on Wednesday.
Wigton Windfarm continues to dominate trading since listing in late May, closing with 13.9 million shares changing hands and 73 percent of total trades, followed by JMMB Group with 919,914 stock units and 5 percent of the day’s trades and Victoria Mutual Investments with 684,263 units for 4 percent of volume traded.
The market closed with average of 557,520 units valued at over $4,335,850, in contrast to 870,687 shares valued at $20,129,850 on Wednesday. The average volume and value for the month to date amounts to 860,896 shares, with a value of $9,289,962, compared to 967,234 shares, with a value of $11,026,454 previously. May closed with average of 2,248,261 units at an average of $12,751,529 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 2 with lower offers.
At the close of the market, Jamaica Broilers finished trading of 16,449 units with a rise of 76 cents to end at $32.51. Jamaica Producers added 99cents to close at $27, with 15,401 shares trading, Jamaica Stock Exchange lost 65 cents to end at $19., with an exchange of 44,163 shares, JMMB Group climbed 39 cents and concluded trading with 919,914 shares at $40, Mayberry Jamaican Equities exchanged 27,963 shares after sliding 85 cents to close at $11.45. NCB Financial Group ended trading of 121,084 shares at a record high of $184.85 but fell $1 to end the day at $169, PanJam Investment fell $1.01 in trading 30,101 shares to close at $94.99. Sagicor Group lost 40 cents in trading 113,467 stock units, to end at $48, Scotia Group gained $1 in trading 105,105 units to close at $52, Seprod fell 75 cents to end at $49.20, in trading 46,911 shares and Supreme Ventures lost 50 cents and settled at $30, with 521,695 shares trading. Sygnus Credit Investments added 50 cents in traded 138,512 units in closing at $13.50.
Trading in the US securities market resulted in 21,177 units valued $2,329 changing hands. Market activity ended with Sygnus Credit Investments traded 21,177 units and closed with a loss of 1 cent at 11 US cents. The JSE USD Equities Index fell 0.06 points to close at 194.37.

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Sunshine Palace opens June

June 3, 2019 by

Palace Amusement is expanding with the re-entry into the rapidly growing Portmore community with the new cinema Sunshine Palace expected to open around mid-June.
The newest cinema house when complete, will bring the number of movie houses operated by Palace to four. The new cinema has 4 auditoriums, providing seating for 674 persons. Patrons will be enjoy the best movie facilities in Jamaica with some seats equipped to recline for greater comfort and will enjoy digital screens for better quality viewing experience. The company in its 2018 annual report had stated then, “we are excited about the offerings of the four screens location to come” in Portmore. Reports reaching IC Insider.com is that the resident of the area are eagerly awaiting the opening new facility that will be located at the new Portmore Sunshine Mall, next door to the Sovereign Village Portmore.

Recliner box seats exclusively for cinema 4.

The company also stated, “It is our hope, in short order, to introduce laser technology in our cinema projection–which will offer a superior light quality for films. Additionally, we will introduce disposable 3D glasses in some of our locations–in response to customer preference and requests.”
In 2004 fiscal year, the then Portmore cinema brought in just over $15 million in revenue, with segment profit of $1.2 million. In 2004, the population was around 160,000 persons and is now around 200,000, but the cinema can pull support from the wider environs including the parish capital, Spanish Town. IC Insider.com estimates that the new cinema could generate revenues of more than $350 million per year, assuming that at least just one person on average from the area attends the cinema annually. The estimated revenue would be just ahead of that is generated in the Montego Bay. With Portmore so close to Kingston, it could result in a switch in some of the existing business to the new one.

The plaza that will house Palace latest movie house.

Palace reported it best year ever with the fiscal year to June 2018 with profit after tax of $152 million up from just $33 million in 2017 fiscal year and earnings per share of $96.58. Revenues climbed nicely by 17 percent to $1.67 billion flowing from a 25 percent rise in patronage income at Carib, 27 percent increase at Cineplex and just 11.5 percent in Montego Bay. The results for the nine months to March this year lagged far behind the 2018 out turn, for the similar period with revenues of $775 million versus $836 million for 2018 and a loss from operations of $1.5 million compared to a profit of $49 million. A capital distribution of nearly $47 million boosted profit for the nine months this year to $45 million.
Palace share last traded on the main market of the Jamaica Stock Exchange at $1,300.

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

Lasco Distributors profit disappoints

May 31, 2019 by

Lasco Manufacturing dropped 40 cents to push Junior Market down.

Revenues rose by 11.44 percent to $18.1 billion from $16.3 billion at Lasco Distributors for the 2019 fiscal year to March, but the good news stop there.
Cost rose rapidly while other revenues declined. Administrative, marketing and sales expenses rose sharply by 20 percent to $2.98 billion from $2.49 billion resulting in pretax profit dropping sharply to $692 million from $1.08 billion.
Operating profit rose 11.9 percent to $3.55 billion from $3.17 billion. Taxes rose to $94 million from $75 in 2018 leaving net profit at $598 million and earnings per share at 17.5 cents versus $1 billion or 29 cents in 2018. The 2018 result, got a boost from inflows from a claim against Pfizer that resulted in other income of $395 million with 2019 generating just $139 million.
Gross cash flow brought in $880 million but the company ended with net cash outflows of $400 million. Cash and short term investments amounted to $1.5 billion down from $1.8 billion in 2018. Fixed assets grew to $1.8 million from $1.48 billion in 2018.

Lasco Distributors products.

At the end of the year, borrowed funds amounted to $540 million. Payables ended at $2.84 billion down from $3.6 billion in 2018. Current assets slipped to $6.6 billion from $5.9 billion. Shareholders’ equity grew to $5.2 billion from $4.57 billion.
Earnings per share for 2019 came out at 17.5 cents with IC Insider.com projecting 30 cents for 2020.The stock traded at $3.70 at a PE Ratio of 13 times current year’s earnings.

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

Profit jumps 92% at Lasco Manufacturing

May 31, 2019 by

Profit jumped 92 percent at IC BUY RATED, Lasco Manufacturing for the year to March 2019, to $1.08 billion, from $561 million in 2018 and $707 million for 2017.
The profit for the year got support from a huge 41 percent jump in sales of $1.954 billion for the March quarter, pushing sales revenue up 13.6 percent to $7.57 billion, for the year.
Improvement in profit margin rose to 36 percent from 35 percent in the 2018, as input cost climbed much slower than revenues growth at 10 percent, to $4.8 billion. The effect, operating profit rose a strong 20 percent to $2.756 billion from $2.29 billion. Administrative, marketing and sales expenses rose much slower than growth in revenues at 4.7 percent to $1.5 billion.
The positive out turn reflects growth in volumes, improved operational efficiencies and streamlining and cost control.

Lasco Manufacturing products

Gross cash flow brought in $1.4 billion but growth inventories, addition to fixed assets of $588 million offset by net loan inflows, dividend payment, reduced receivables and increased payables resulted in cash rising by $1.1 billion, leaving cash on hand and bank at $1 billion.
At the end of March, shareholders’ equity stands at $5.85 billion with borrowings at $1.4 billion. Net current assets ended the period $2.26 billion well over Payables of $813 million. The company completed the 65,000 feet warehouse that is expected to simplify logistics and result in cost savings.
Earnings per share came out at 26 cents for the year and is projected at 45 cents for the 2020 fiscal year. The stock traded at $3.25 on the Junior Market of the Jamaica Stock Exchange with an attractive PE ratio of 7.2 times 2020 earnings, well below the market average.
The company will pay a dividend of 3.8 cents per share during the year, resulting a total payment of $155 million.

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Another JSE main market record tumble

May 28, 2019 by

New record high for the JSE main market.

The main market of the Jamaica Stock Exchange continues to turn up new records with the market ending at the 12th record close for the year on Tuesday as the market moved closer to resistance at 480,000 points level on the all JSE All Jamaican Composite Index.
The main market ended on Tuesday with the JSE All Jamaican Composite Index rose 1,146.07 points to a record 471,986.07 and the JSE Index rose 1,041.48 points to a record close of 429,900.08 ahead of another month end when prices are often move higher for portfolio valuation purposes. At the close of trading on the main and US markets, the prices of 15 securities advanced, 8 declined and 13 traded firm.
NCB Group jumped $4.99 to close traded at $160, Caribbean Cement closed $7.85 higher at $80.90, Salada Foods jumped $5.65 to $35.65, while Scotia Group fell $1.60 to close at traded at $51.40.  Wigton Windfarm dominated trading with 156.9 million shares and 98.5 percent of total trades, followed by JMMB Group with 343,179 shares and Sagicor Group with 271,975 units.
The main market ended with, trading down from 201,967,708 units valued $347,243,860, on Monday to 159,340,927 units valued $195,304,339 changing hands on Tuesday.
Trading ended with an average of 4,686,498 units valued $5,744,245, in contrast to 6,515,087 shares valued at $11,201,415 on Monday. The average volume and value for the month to date amounts 1,603,777 units valued $11,940,167 and previously, 1,423,065 units valued $12,322,493. Trading for April resulted in an average of 157,923 shares at $3,718,919, for each security traded.
IC bid-offer Indicator|The Investor’s Choice bid-offer indicator ended with 5 stocks ending with bids higher than their last selling prices and 4 closing with lower offers.
In main market activity, Barita Investments gained 88 cents in closing at $44.99, trading 1,989 shares, Berger Paints rose by 92 cents in trading 4,195 shares at $19, Caribbean Cement closed $7.85 higher at $80.90 while trading 131,582 shares, Jamaica Producers lost 49 cents to close at $24.51, in trading 2,500 shares. NCB Financial Group gained $4.99 trading 101,565 shares to end at a 52 weeks’ closing high of $160. PanJam Investment fell 98 cents with 11,180 shares changing hands, to close at $97.02, Sagicor Group lost 49 cents and ended trading at $48.01, with an exchange of 271,975 stock units, Salada Foods surged $5.65 to $35.65 in trading 565 stock units. Scotia Group shed $1.60 to $51.40, with 162,037 shares trading, Seprod added $1 trading 15,149 shares to close at $44, Stanley Motta fell 30 cents and ended at $4.70 trading 17,800 shares and Supreme Ventures rose 50 cents to finish at $31.50, with 103,297 units changing hands.
Trading in the US dollar market ended with 6,694 units valued $974. Proven Investments gained 3 cents to close at 27 US cents with an exchange of 1,794 shares and Sygnus Credit Investments traded 4,900 units and closed at 10 US cents. The JSE USD Equities Index surged 10.05 points to close at 194.40.

 

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Falling Junior Market stocks dominate

May 15, 2019 by

Trading on the Junior Market of the Jamaica Stock Exchange ended on Wednesday in an exchange of 1,527,469 units valued at $5,859,798, compared to 1,508,027 units valued at $8,243,329 on Tuesday.
At the close of market activities, 28 securities changed hands, compared to 27 on Tuesday. Trading resulted in prices of 9 securities rising, 12 declining and 7 remaining unchanged. The Junior Market index climbed 18.73 points to 3,089.22.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 5 stocks ended with bids higher than their last selling prices and 8 with lower offers.
Trading ended with an average of 54,552 units for an average of $209,278 in contrast to 55,853 units for an average of $305,308 on Tuesday. The average volume and value for the month to date amounts to 81,351 units valued at $303,536 and previously, 84,172 units valued at $313,458. In contrast, April closed with an average of 87,963 units valued $317,267 for each security traded.
At the close of the market, Blue Power concluded trading of 5,300 units with a loss of 30 cents at $4.40, Cargo Handlers lost 75 cents in closing at $10, with an exchange of just 300 shares, Caribbean Producers finished trading with 38,112 units, and fell 15 cents to end at $4.75. Consolidated Bakeries closed at $1.80, in trading 1,300 shares, Derrimon Trading ended 31 cents higher at $2.81, while exchanging 244,762 shares, Dolphin Cove concluded trading of 756 shares, with a loss of 5 cents in closing at $12, Everything Fresh settled with a loss of 7 cents at $1.53, with 180,495 units changing hands. Elite Diagnostic ended trading with 111,323 shares and rose 16 cents higher to $3.16, Express Catering traded 56,263 shares at $7, FosRich Group traded 31,741 shares, at $5, Fontana closed 10 cents higher at $4.60, with 470,171 stock units changing hands. General Accident ended with a loss of 1 cent at $4.49, with 10,000 units traded. GWest Corporation concluded trading with 14,282 shares, after rising 2 cents higher to $1.39, Honey Bun finished with a loss of 25 cents at $3.80, trading 3,948 shares, iCreate settled at 90 cents, with 29,014 shares crossing the exchange, Indies Pharma ended trading 36,600 stock units and rose 10 cents to close at $3.35. Iron Rock traded 116,347 units with a loss of 40 cents in closing at $3.50, Jamaican Teas closed 55 cents higher at $4.10, with an exchange of 24,296 shares, Jetcon Corporation  added 20 cents to close at $2.50, with 500 shares traded, Knutsford Express fell 25 cents to $12.50, trading 1,150 shares. Lasco Distributors ended trading of 29,827 shares, at $3.89,  Lasco Financial  exchanged 6,000 shares, and rose 20 cents to close at $4.70,  Lasco Manufacturing  finished trading 3,260 stock units after falling 26 cents to end at $3.34, Main Event closed with a loss of 50 cents at $5, with 8,129 units changing hands. Medical Disposables ended at $6.85, while exchanging 2,000 shares, SSL Venture Capital finished with a loss of 9 cents at $1.61, with 28,000 shares traded and Stationery and Office settled at $8.50 with an exchange of 72,193 stock units. In the junior market preference segment, Derrimon Trading ended 10 cents higher at $2, with 1,400 stock units changing hands.

Prices of securities trading for the day are those at which the last trade took place.

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Big jump in Witco profit

May 14, 2019 by

West Indian Tobacco last closed at $110.

Profit before tax jumped a strong 37 percent at the Trinidad based West Indian Tobacco to TT$145 million for the three months period ended March 2019, up from $106 million in 2018.
After providing $45 million for corporate taxes profit rose 38 percent to $100 million.
The impressive results arose from a sharp 21 percent climb in revenues to $227 million and a decline in cost from 36 million in 2018 to $32.4 million in the latest quarter. Also contributing to the improved results, was an rise in gross profit margin to 77.8 percent from 75.3 per cent in 2018 that resulted in gross profit rising 25 percent to $177 million versus $141.5 million in 2018.
The Board approved the payment of a first interim dividend of 83 cents per share payable on June 11 to shareholders on record at the close of business on May 21. Earnings per share climbed to $1.19 from 86 cents in 2018. For the full year, earnings should hit $6.40. The stock that is listed on the Trinidad and Tobago Stock Exchange last traded at TT$110 at a PE of 17.

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

Strong rise in Wisynco profit

May 13, 2019 by

Wisynco Group sent a strong message to investors, why the company’s stock is a must have by posting a strong 38 percent rise in profit for the 2019 March quarter, from revenues that grew 18.7 percent to $6.9 billion.
For the nine months to March, profits grew slower than for the quarter at 32 percent after tax, from revenues that are up 15 percent to $20.8 billion. The second quarter benefitted from the addition of rum and sugar distributions as well as improved efficiency flowing from the new bottling lines installed late in 2018 but suffered from foreign exchange losses of $69 million. Without the currency loss, profit in the quarter would be closer to an increase of 50 percent.
Asked how long the strong growth can continue, Managing director, William Mahfood informed IC Insider.com, “I think it will be for the next couple years, based on the economy as well as our improved efficiencies.”
Profit before Taxation for the quarter increased to $791 million or 35.4 percent compared to $585 million in 2018 for the same quarter. For the quarter ended March 31, 2019, Profits Attributable to shareholders of $694 million or 19 cents per share compared to $504.3 million or 14 cents per share, an improvement of 37.6 percent over the corresponding period of the prior year.

Worthy Park sugar distributed by Wisynco & also Worthy Park Rum.

Gross Profit increased to $2.6 billion or 24.9 percent over the $2.1 billion achieved in the same in 2018 resulting in Gross Margin of 37.8 percent, greater than the 35.9 percent for the corresponding quarter of the previous year. For the half year Gross Profit also increased to $8 billion or 19 percent over the $6.7 billion achieved in the same quarter of the previous year resulting in Gross profit margin of 38.5 percent.
Selling, Distribution & Administrative Expenses for the quarter totaled $1.7 billion or 14.2 percent, more than the $1.5 billion for the corresponding quarter of the prior year. For the half year, cost incurred increased 16 percent to $5.2 billion. The six months increase is just ahead of revenue growth. Finance expenses included a loss of $69 million due to the revaluation of the Jamaican Dollar and pushed the cost in the quarter by 183 percent and 70 percent for the half year to $302 million. The company should benefit from the decline in the value of the local dollar subsequent to the close of the quarter as well as the distribution of JP Snacks’ products.
The group is in a healthy financial position. Current assets stood at $9.2 billion of which cash equivalent stood at $3.3 billion while current liabilities amounts to just $3.9 billion with shareholders’ equity $10.39 billion and borrowings amount to $1.25 billion.
IC insider.com is forecasting earnings of $1 per share for the year ending June and $1.50 for the 2020 fiscal year that starts in July. The stock trades at $14.90 on Friday and is up 36 percent for the year to date and trades at 15 times 2019 earnings and just 10 times 2020.

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