Flat profits at Jamaican Teas

Jamaican Teas

Domestic sales at Jamaican Teas was robust for the first quarter to December last year, with a 16 percent increase in both the manufacturing operation and at the company’s sole supermarket. Exports fell sharply and pulled down overall sales.
JTL’s first quarter revenues from manufacturing operations declined by 10 percent, due mainly to a stock reduction exercise at the main USA distributer, resulting from export sales declining 40 percent, following a very strong 67 percent increase in the first quarter of 2018 fiscal year and a 24 percent increase for the full fiscal year. The group had no sales of houses in the period as the sole scheme that was developed was completed. Sales generated from the property development in the 2017 quarter of $48 million.
The decline in export sales in the December quarter negatively affected results for the quarter for the group. Nevertheless, the Group’s first quarter net profit attributable to the owners slipped 4 percent, from $52 million to $50 million.
The Company is reporting pick up in exports following the closure of quarter, as well as local sales in both the manufacturing and supermarket operations. With the prices of certain stocks rising since December, the group should be enjoying gains in their equity portfolio.
Earnings per share per share from continuing operations finished at 7.3 cents, down from 7.7 cents in 2017.
For financial year commencing, October 2018, the Group adopt the new accounting standard IFRS 9, resulting in all realized and unrealized gains on listed equities becoming part of the profit and loss account.
The Group continues to enjoy improving financial health with equity capital of $1.4 billion and borrowed funds of just $178 million. The quarter ended with combined quoted investments at $454 million, up from $319 million in the previous year and net cash on hand equaled $132 million.
Jamaican Teas is listed on the main market of the Jamaica Stock Exchange and last traded at $4.
Persons connected with IC Insider.com are associated to the company.

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