Jamaican Teas profit rises

A 55 percent jump in the profit before tax for the quarter to March 2016, to $31 million over the previous year’s quarter, was one of the highlights of Jamaican Teas’ 2016 performance to date. After tax profit jumped for the quarter by 30 percent to $26 million. There was no taxation provision in the 2015 period.
For the six months to March, profit before tax was up 69 percent to $73 million but after accounting for tax, in the current year ended 44 percent higher at $62 million for the 2015 period. Total comprehensive income which includes unrealized gain on sale on investments was up year over year at $95 million versus $57 million in 2015.
Sales for the Quarter of $326 million exceeded the $293 million for the previous year’s quarter by 11 percent, while for the six months, sales grew 17 percent to $713 million. Gross profit for the group increased faster than revenues, with an increase of 22 percent to $73 million for the quarter to March and for the year to date, by 24.5 percent to $152 million.
The manufacturing division recorded growth of local sales of 11 percent to $94 million for the quarter and 14 percent for the half year to $190. Exports grew 12 percent for the quarter to $90 million and 8 percent for the six months period to $199 million. Retails sales grew ahead of inflation with an increase of 12 percent to $141 for the quarter and an increase of 10 percent for the half year, to $257 million. There were no sales recorded for residential property for the quarter but sales of $40 million were recorded in the year to date results.
Profit before tax for the manufacturing division was $47 million compared to $34 million for the six months to March while for the retail segment profit was just $1 million compared to $577,000 in 2015. Share of associated company loss amounted to $5.10 million versus $3.34 million in 2015.
Expenses for quarter to March rose 18.5 percent and 18 percent for the six months to March but the increase was less than that of gross profit. Sales and Marketing cost rose by 24 percent to $18 million, Administration cost rose 17 percent to $66 million, Finance cost ended the period at $20 million, an increase of 16 percent, partially due to delay in completing sales in the real estate development, as well loans used in the funding of equity investment.
Investments contributed $8.6 million to profit from sale of investments for the half year leaving unrealized gains of $44 million at the end of March, with the gains included in the investment portfolio of $119 million.
Inventories grew from $396 million in March 2014 to $434 million, including $240 million cost of the real estate development. Amounts due from purchasers of houses in the development, totalling $75 million, helped to push receivable balance to $275 million.
Payables increased by $42 million over the year-end, due mainly to the purchase of inventories which increased by $45 million, or 11 percent over the September 2015 balance.
Cash generated from operations amounted to $38 million after paying corporate taxes of $20 million and repaying loans of $36 million and cash and cash equivalent ended at $35 million.
Shareholder’s equity stood at $820 million for a book value per share of $2.43 compared to a stock price of $3.90 on the junior market of the Jamaica Stock Exchange. (John Jackson is a director of Jamaican Teas).