Some impressive profit results

March 2, 2018 by

The latest set of listed companies to report financials show an array of impressive profits for a number of them, turn around situation in one and flat results for a few.

C&W reported a small loss of $138M for 2017 before tax.

Cable and Wireless reported a very small loss for 2017 down sharply from a billion loss in 2016 and is about to break out into a highly profitable period starting in 2018. The company that has chalked up accumulated losses of more than $48 billion reported losses of only $138 million before tax for 2017, and just $383 million after tax, flowing from a 9 percent rise in revenues to $27 billion with a big rise in mobile revenues by 54 percent to $15 billion while interest cost at $5.2 billion the company lost the year, down from a loss of $1.4 billion in 2016. With the sharp fall in interest rates locally interest cost should drop by around $2 billion in 2018 and plunge the company into an excellent profit position with continued growth in revenues. Unfortunately, the parent company wants to take over the company at a low price, after local shareholders have suffered losses for many years at just the stage when good times seem to be returning.
Newly listed FosRich Group posted an 81 percent increase in profit to $55 million and earnings per share of 14 cents from revenues that fell 9.5 percent to $1.05 billion, but helped by other income of $42 million comprising mostly interest and foreign exchange gains.
Jamaica Producers enjoyed strong gains in operating profits with an increase of 77 percent to $662 million after adjusting the 2016 results for non-recurring gains of $3.7 billion. Operating income for the year was up an impressive 34 percent resulting in gross profit rising from $3.24 billion to $5.14 billion. Earnings per share came in at 59 cents.
Stationery and Office Supplies that listed in August last year enjoyed a 29 percent bounce in revenues for the full year and 37 percent rise in the December quarter to record full year revenues of $906 million and a 78 percent rise in profits to $83 or earnings per share of 38 cents.
Kingston Wharves profit climbed 18 percent from $1.29 billion to $1.63 billion for 2018 from revenues that moved from $5.41 billion to $6.37 billion for a rise of 28 percent and ended with earnings per share of $1.14.
Grace Kennedy continues to struggle to increase profits ended 2018 with flat results of $4.15 billion versus $4.12 billion in 2016. The 2016 figures and one off gains that makes the 2018 better that it appears on the surface. Revenues rose from $88.3 billion to $92 billion in 2018 and other revenues slipped from $2.38 billion to $2.1 billion. The group reports $4.15 in earnings per share.

FosRich profit rose 77% for 2017.

Supreme Ventures reports earnings per share at $44 cents from profits that are virtually flat with 2016 results coming from a 25 percent rise in revenues to $56.2 billion. Profit for the year ended at $1.197 billion from $1.178 billion. The 29017 suffered from write off of assets and impairment amounting to $484 million while repairs and maintenance rose by $110 million.
The 2017 listed Victoria Mutual Investments reports a 9 percent rise in profits to $346 million from a 19 percent rise in net income of $966 million and produced earnings per share of 29 cents.

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Junior Market volume slides – Monday

February 26, 2018 by

The market closed on Monday with 23 securities changing hands, up from 21 on Friday, resulting in an exchange of 1,526,211 units valued at $4,615,508, compared to 5,241,602 units valued at $19,221,963, on Friday.
The Junior Market index fell 11.94 points to close at 2,916.34 as the prices of 8 securities advanced, 9 declined and 6 remained unchanged.
Trading ended with an average of 66,357 units for an average of $200,674 compared to an average of 249,600 units for an average of $915,332 on Friday. An average of 274,310 units at an average value of $1,538,475 traded, and previously 288,936 units at an average value of $1,632,571. In contrast, January closed with an average of 122,386 shares, valued at $489,704 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 4 stocks ending with the bid higher than the last selling price and 3 with lower offers.
At the close of the market, AMG Packaging ended with a loss of 1 cent at $2.44, with 3,500 stock units, Caribbean Cream ended trading with a loss of $1.32to $6.20, with 7,900 shares, Caribbean Flavours traded 1 cent higher at $10.90, with 9,725 stock units, Caribbean Producers finished trading with a loss of 40 cents at $4, with 12,490 units, Consolidated Bakeries closed 12 cents higher at $1.90, with 8,059 shares. Derrimon Trading concluded trading with a loss of 15 cents at $7, with 1,707 shares, Elite Diagnostic settled with a loss of 23 cents at $2.67, with 1,231,455 units, Express Catering traded with a loss of 40 cents at $4.30, with 17,778 shares, FosRich Group finished trading at $2.70, with 103,300 shares. General Accident closed at $2.80, with 6,012 stock units, GWest Corporation ended 10 cents higher at $2.60, with 12,653 units, Honey Bun concluded trading 2 cents higher at $5.15, with 500 shares, Iron Rock finished at $3, with 10,000 shares. ISP Finance settled $1.05 higher at $11.05, with 2,500 shares, Jamaican Teas ended trading with a loss of 3 cents at $4.75, with 12,045 stock units, Jetcon Corporation traded at $4.60, with 11,050 units, Knutsford Express ended at $15, with 1,627 shares. Lasco Distributors concluded trading 3 cents higher at $4.40, with 19,647 stock units, Lasco Financial finished with a loss of 15 cents at $4.85, with 24,372 units, Lasco Manufacturing settled at $4.43, with 6,000 shares, Main Event ended trading 3 cents higher at $6.03, with 3,000 shares, Stationery and Office closed 2 cents higher at $5.02, with 18,059 units and tTech concluded trading with a loss of 40 cents at $5, with 2,832 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

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Jamaican Teas exports sales up 66%

February 26, 2018 by

Jamaican Teas CEO, John Mahfood addressing the company’s last AGM in 2017.

Export sales at Jamaican Teas grew a very strong 66 percent for the December quarter while domestic manufacturing sales increased by 15 percent. Overall sales at increased 22 percent to $456 million the quarter.
Revenues from our manufacturing operations grew 40 percent in the period while supermarket sales increased by 9 percent. Profit after tax rose 9 percent to $51 million, reflecting better performance from core operations and resulted in earnings per share of 7.6 cents.
A release accompanying the results by the company, stated that, “importantly, the trend in sales continued into the second quarter and are meeting the Company’s expectations. Our investment portfolio continued to increase in value over the December levels.”
Gross profit margin increased from 23 percent to 24 percent in the quarter over 2016. Other income was down by 59 percent, falling from $17 million to $7 million. The 2016 results benefited from greater contributions from realized investment and foreign exchange gains than in the latest quarter. In this regard realized investment gains during the quarter was $6 million compared with $12 million in the same period a year ago.Marketing and sales cost rose 16 percent to $9.6 million, administrative cost rose 34 percent to $43 million, reflecting added associated with the KIW acquisition, but finance cost fell 51 percent to $4.6 million.
The company said that “with the acquisition of KIW International and the reinvestment of the proceeds of sale from the property formerly owned by the company, quoted investments at the end of the quarter totaled $319 million.” It could have a major impact on profits, if the local stock market continues to record gains for the year.
The financial position improved over 2016 with equity capital of $1.1 billion, net current assets of $549 million and long term loan of $193 million.

The stock last traded at $4.78 on the Junior Market of the Jamaica Stock Exchange.

John Jackson is a directors of the company.

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JSE trading picks up on Friday

February 23, 2018 by

Main Market activity on the Jamaica Stock Exchange picked up modestly, and ended with 4,322,228 units valued at over $69,892,327 changing hands versus 2,690,310 shares valued at $52,093,635 Thursday.
Main Market of the Jamaica Stock Exchange Market activity ended with 27 securities traded ending with 9 securities rising, 10 falling, 8 trading firm, leading to market indices suffering a fall. The JSE All Jamaican Composite Index fell by 776.18 points to 319,258.66 and the JSE Index lost 707.19 points to close at 290,880.73.
In the main market activity, Barita Investments closed at $8, with 5,000 shares, Berger Paints ended 20 cents higher at $17.25, with 13,290 stock units, Cable & Wireless concluded trading at $1.25, with 61,100 units, Caribbean Cement finished with a loss of $1.45 at $31.55, with 2,242 shares, Carreras closed $10.95, with 214,710 shares changing hands, Ciboney Group settled with a loss of 2 cents at a 52 weeks’ low of 10 cents, with 1,385,481 shares traded. Grace Kennedy ended trading with a loss of $1.20 at $43, with 202,384 shares, Jamaica Broilers traded 48 cents higher at $18.55, with 904,680 stock units, Jamaica Producers gained 15 cents to end at $15.15, with 40,000 units, Jamaica Stock Exchange closed 30 cents higher at $7, with 7,400 shares. JMMB Group ended with a loss of 40 cents at $24.60, with 34,724 shares, Kingston Wharves finished at $42.60, with 5,344 stock units, Mayberry Investments settled with a loss of 5 cents at $4.75, with 12,598 units, NCB Financial Group ended trading 9 cents higher at $99.99, with 92,031 shares. PanJam Investment closed at $40.75, with 48,178 stock units, Portland JSX ended 22 cents higher at $10.22, with 800 units, Radio Jamaica finished at $1.05, with 109,000 shares traded, Sagicor Group settled with a loss of 45 cents at $36.55, with 293,843 stock units. Sagicor Real Estate Fund settled with a loss of 40 cents at $14.50, with 29,285 shares, Salada Foods ended trading $1 higher at $12, with 5,000 stock units, Scotia Group traded $1.50 higher at $53.50, with 216,374 units, Seprod finished trading with a loss of 94 cents at $29.05, with 81,403 shares, Sterling Investments closed at $13, with 300 shares. Supreme Ventures ended 10 cents higher at $11.90, with 19,328 shares, Victoria Mutual Investments concluded trading with a loss of 1 cent at $4.39, with 188,796 stock units, Wisynco Group fell 10 cents to settle at $10.40, with 198,937 units and in the main market preference segment, JMMB Group 7.5% ended at $1.02, with 150,000 shares changing hands.

Prices of securities trading for the day are those at which the last trade took place. For more details of market activities, see “JSE main market fell on Friday.”

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Minority owners disrupt NCB’s Guardian offer

February 23, 2018 by

NCB Financial Group has advised that the offer to acquire up to 62 percent of Guardian Holdings shares lapsed due to failure for condition 2.4.5 of the Offer.
The conditions in summary stipulates that the conclusion of the offer is subject to there being no action instituted or threatened or investigation by government or its bodies or legal action that may delay the completion of the offer or make it illegal.
At the end of Friday 23rd February, there are terms and conditions of the Offer which remain outstanding a release from NCB stated, as such and in accordance with the provisions of the Securities Industry (Take-Over) By-Laws, 2005 the Offer lapsed.
The latest tally of offers received showed 535 Guardian shareholders tendered approximately 91,743,975 shares which, together with the NCB existing shareholding, represents approximately 70.24% of the outstanding GHL Shares. No shares deposited have been taken up by the Offeror.
NCB future states that the Trinidad and Tobago Securities and Exchange Commission has decided to convene a hearing in accordance with the provisions of the Securities Act, 2012 in respect of the facts and circumstances surrounding the Offeror’s equity interest in GHL and the issuance of the Offer Circular.

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Jamaica’s Q4 growth could hit 2%

February 21, 2018 by

Image courtesy of arztsamui/FreeDigitalPhotos.net

Bank of Jamaica (BOJ) estimates that the Jamaican economy grew, within the range of 1 to 2 percent for the December 2017 quarter. “With the exception of producers of Government Services, all sectors are estimated to have grown for the quarter,” BOJ said.
Both tradable and non-tradable industries are estimated to have expanded for the quarter with tradables estimated to have registered a faster pace of growth when compared to the non-tradables According to the central bank, the growth was also reflected in improved labour market conditions as unemployment continued to fall. Economic growth is forecast to be in the range chiefly reflective of expansions in Mining & Quarrying, Agriculture, Forestry & Fishing, Hotels & Restaurants, Construction, Manufacturing and Electricity & Water Supply. The central bank went on to state that for FY2018/19 and over the medium-term, economic activity is expected to expand within the ranges of 2 to 3 percent to 3.0 percent and 1.5 to 2.5 percent, respectively.

Bauxite mining

The central bank stated that “expansion in the economy was supported by the continued accommodative monetary policy stance. During November, the Bank reduced its signal interest rate, the interest rate payable on its overnight Certificate of Deposit by 25 bps to 3.25 percent on the assessment that inflation for the next four to eight quarters would remain within the target range of 4 to 6 percent. This accommodative monetary conditions continued to support growth in credit in the financial system with private sector financing by deposit taking institutions (DTIs) increasing by 9.1 percent for the calendar year to October 2017.”

Filed Under: Company News

Improved Q4 results at Productivity Business

February 18, 2018 by

Productivity Business Solutions reported a 21 percent reduction in loss for 2017 to US$1.7 million for the December quarter and an increase of 76 percent to US$4.9 million for the full year after taxation of US$1.17 million for the quarter and US$2 million for the year.
Revenues grew 9.25 percent to US$46.36 million in the quarter up from $42.43 in 2016 and for the full year it was up a mere 1 percent to US$172 million from US$171 in 2016.
Administrative expenses rose 7 percent to $18.55 million for the quarter and by 2 percent for the year to $68 million and finance cost 31 percent for the quarter and to $2.9 million and by 37 percent to $9.35 million for the year. Devaluation losses seem to have negatively affect finance cost in the December quarter and pushing the operations into a loss position before tax, for the year, expenses connected for refinancing and capital transactions relating to new business in Suriname and Columbia, helped in pushing cost up in this area.
Based on the fourth quarter results, with a small loss with increased foreign exchange losses, 2018 could turn out to be a profitable year.
The shares last traded on the US dollar market of the Jamaica Stock Exchange at 55 US cents.

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39% jump in JMMB’s Q3 profit

February 15, 2018 by

JMMB Group enjoyed a strong third quarter, with profit after tax jumping sharply by 39 percent, to $871 million from $628 million in 2016 and earnings per share of 53 cents, from a rise in revenues, net of interest cost of 24 percent to $4.5 billion.
Interest margins slipped in the quarter year over year, from 52 percent to 49 percent but was better than the year to date performance of 48 and 47 percent respectively. Fees and commission income jumped an impressive 71 percent to $512 million in the quarter and 53 percent in the nine months, over the similar period in 2016 with significant growth in managed funds and collective investment schemes across the Group. Gains on securities trading climbed 42 percent in the December quarter and just 5 percent for the year to date, over 2016. Foreign exchange gains were up 43 percent for the quarter but down 4 percent for the nine months.
The group posted net profit of $2.58 billion and earnings per share of $1.56 for the nine months to December, while generating 11 percent increase in net operating revenue to $12.28 billion, resulting from increases in net interest income, trading gains, fees and commission income.
Net interest income, grew 12 percent or $594 million to $5.66 billion, flowing from strong growth in the loan and investment portfolios. Financial and Related Services continued to be the leading contributor to net operating revenue with 67 percent at $8.23 billion which is 11 percent more than the $7.4 billion generated in the similar period in 2016. This improvement was due mainly to growth in trading gains, asset management fees as well as net interest income. The Banking performance of $3.86 billion reflected a 10 percent increase, up from $3.52 billion and resulted from strong growth in the loan book which translated into net interest income and fee income.
Administrative Expenses climbed 13 percent in the quarter and 14 percent year to date over 2016, slower than the growth in revenues for the quarter but faster than revenues year to date.
“Jamaica’s focus remained on operationalizing our commercial bank and maximizing our cross-selling efforts across the Group. Accordingly, growth in both the loan book and our off balance sheet offerings continued to improve.” Archibald Campbell, Chairman and Keith P. Duncan, Group Chief Executive Officer stated in their comments on the quarterly.
At the end of the reporting period, the JMMB Group’s asset base totalled $271 billion, up $19 billion or 8 percent relative to the start of the financial year. This was mainly on account of higher cash holdings as well as larger loan and investment portfolios. The investment portfolio increased by $9.6 billion or 6 percent to J$182 billion, while net loans and advances grew by $6.57 billion or 14 percent to $53.7 billion. The total invested in off-balance sheet products as at the end of December 2017 stood at $117.9 billion compared to $107.64 billion as at end of December 2016.
IC Insider.com projects earnings of $2.75 for the full year. The stock last traded on the Jamaica Stock Exchange at $25 for a PE of 9.

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Solid buy – Stationery and Office Supplies

February 13, 2018 by

Stationary and Office Supplies – Montego Bay offices.

Stationery and Office Supplies stock is under pressure, having traded around the $5 level for some time, dropped to $4 in trading during last week with minimal demand for the stock currently.
But investors should probably be taking a different approach to the stock and piling into it for a big rally down the road as the fundamentals are strong and getting better.
Revenues climbed 23.7 percent in the June quarter to $212 million and 22 percent to $432 million for the half year, by the September quarter the growth climbed to 37 percent to $233 million, pushing revenues for the year to September to an increase of 27 percent to $665 million. Based on the bounce in revenues that some companies received after listing, the strong growth in revenues seen in the third quarter is said to have continued for the December quarter. Full year results are expected, by the first week in March and should be in the range of $100 million based on IC Insider.com projections. Reports are that the full year results for 2017 exceeded expectations which was around $70 million at the time the IPO was offered and adjusted internally upwards based on third quarter results. At the end of September profit before tax reached $69 million well ahead of the $48 million recorded at the same time in 2016 and vastly more than the $53 million reported for all of 2016. The 2017 results are not likely to show any weakness as occurred in 2016.
SOS had acquired a building which was converted to a warehouse to allow for expansion of It’s offerings, this is now in use with some 6,000 square feet occupied. According to reports there are “lots of plans and expectations going forward for good business growth”. IC Indsider.com gathers that the December quarter that is normally the worse quarter for them due to the holidays, but the 2017 last quarter was the best quarter in the company’s history.
IC Insider.com projects earnings before tax at 50 cents per share for 2017 based on the average number of shares issued for the year, up from 40 cents when the shares were offered for sale and 75 cents for 2018 based on projection for continued strong growth in revenues.
At a last traded price of $4.50 on the Junior Market of the Jamaica Stock Exchange, the stock remains a buy as it will benefit from strong growth in 2017 and future growth in 2018 and beyond. Investors should take advantage of the current softness in the stock price and wait for the inevitable strong gains ahead.

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Caribbean Creams buying market share

February 12, 2018 by

Caribbean Cream outlook.

Caribbean Creams strategy of going for market share seems to be paying off with strong rise in revenues in the third quarter but at a steep cost with profits falling sharply in the quarter.
Profit at the sole producer of ice cream listed on the Junior Market of the Jamaica Stock Exchange was disappointing as shown by their latest quarterly report recently. The disappointment is not due to under performance of the company though but from what appears to a strategy to boost market share.
Profit slid 97 percent to just $653,000 in the November quarter, from $19 million in the similar period in 2016. For the nine months to November, profit slid 48 percent to $71 million from $137 million in 2016.
Input cost has risen sharply during the period but management strategy seems clear go for market share by keeping prices stable and low and revenues will eventually deliver bottom line gains.
Revenues climbed 18 percent for the quarter, to $319 million from $271 million in 2016 and rose at a slower 12 percent to $992 million from $886 million in 2016 for the nine month period.
Profit margin, declined for both the quarter and year to date period, in the November quarter to 27 percent from 33 percent in the 2016 and for the nine months to 31 percent from 39 percent in the 2016 period, as input cost climbed 29 percent in the quarter, compared to 27 percent for the year to date period. The effect, gross operating profit declined just 4 percent in the quarter to $85 million from $89 million and fell 11 percent for the year to date, to $305 million from $344 billion in 2016.
Direct operating cost was not the only area to experience steep cost rise. Administrative expenses rose 25 percent to $68 million in the quarter and increased by 15 percent in the nine months to $193 million. Finance cost jumped 58 percent in the quarter, to $6 million over 2016 and 41 percent from $8.7 million to $12 million for the nine months period.
Earnings per share came out at 19 cents for the nine months and is expected to rise with the important final quarter covering the Christmas period to impact revenues.
Gross cash flow brought in $130 million but addition to fixed assets, loan payments and paying $23 million dividends, brought cash funds at November, to $145 million. At the end of November, shareholders’ equity stood at $640 million with borrowings at just $86 million. Net current assets ended the period at $214 million well over Payables of $77 million. Amounts invested in inventories dropped from $161 million at the end of February to $96 million.
The stock traded at $5.70 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 10 times estimated 2018 earnings and with IC Insider.com forecasting 80 cents per share for PE of 7.5 times earnings.

Filed Under: Company News, Company Results