Profit at Jamaican Teas for the 2015 fiscal year to September rose 60 percent to $81 Million from a 17 percent increase in revenues of $1.3 billion and from a 32 percent rise in exports to $370 Million.
Export sales exceeded domestic sales from the manufacturing arm that ended at $363 million for a 6 percent increase for the year.
In the final quarter, net profit increased by 520 percent to $12 million from a loss in 2014 and $15.6 million after other comprehensive income. For the full year total comprehensive income amounted to $97 million compared to $46 million in 2014. The company incurred some one-off costs that are not likely to recur in 2016 and should help in contributing to increased profit.
The group operates two supermarkets, one in Kingston and one in Savanna-la-Mar with sales of $520 million for the year compared to $491 Million in 2014. The jointly owned supermarket in Montego have been challenging in a tight but competitive Montego Bay economy.
June marks the end of the tax free status of Jamaican Teas. Accordingly, the company became subject to income tax, effectively at 12.5 percent commencing in the fourth quarter of the 2015 financial year and continuing for another 4 years and nine months.
The company said they completed construction of 29 two bedroom units along with infrastructure work during the fiscal year, with all units being sold, with the majority of sales to be booked in the new fiscal year. The company expects that the net proceeds of sales will be used to pay down loans, pay a dividend to shareholders and finance Phase II of the development of which there are several commitments for.
Outlook|The company is expecting another year of good performance in 2016, in line with this, the 2016 financial year has started off on a favourable note with strong interest shown in units in phase 2 of real estate development. The expected completion of the sale of all units in phase 1 are of real estate development, good export sale orders so far. The electioneering ahead of the general elections could bring increased consumer spending and positive development in the tourism sector with the expectation of a strong tourist arrivals in 2016 could see the company benefitting. Jamaican Teas also holds a portfolio of equities that has increased in value with the 2015 results shows with an increased value of $16 million, that amount would have grown with the growth in the Jamaican Stock market since the year end.
The company is primarily involved in the processing of local teas and packaging along with imported teas and for the Jamaican and overseas markets, operates supermarkets, and the rental and development of realty. The company’s shares are listed on the Jamaica Stock Exchange, last traded at $3.85.
Profit up 60% at Jamaican Teas
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[…] trading, General Accident traded 111,376 shares to close with a loss of 5 cents, to end at $2. Jamaican Teas lost 7 cents with 43,000 shares changing hands, to close at $5.35, KLE Group rose 33 cents to $1.83 […]
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[…] Bun gained 10 cents with 1,150 shares changing hands and closed at a 52 weeks’ high of $6.28, Jamaican Teas rose 45 cents and ended at a 52 weeks’ high of $5.50 while 1,689 units were traded, KLE Group […]
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[…] traded 63,115 shares to close with a gain of 14 cents, to end at a 52 weeks’ high of $2.19. Jamaica Teas ended at $5.05 with a while 39,500 units traded, but rose earlier to a 52 weeks’ intraday high of […]
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[…] 1,000 shares changing hands, closed with a gain of 15 cents at $5.65 for a new 52 weeks’ high. Jamaican Teas gained by 5 cents with 3,000 shares trading at a 52 weeks’ closing high of $5, KLE Group ended […]
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[…] 15,512 shares changing hands, closed with a gain of 50 cents at $5.50 for a new 52 weeks’ high, Jamaican Teas had 10,700 shares trading at a 52 weeks’ closing high of $4.95, after rising by 30 cents, […]
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[…] changing hands and closed at $1.90. Honey Bun with 17,265 shares changing hands and closed at $5, Jamaican Teas had 500,000 shares trading at a 52 weeks’ closing high of $4.65, after rising by 35 cents, […]
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[…] 17,292 units trading at 75 cents. Honey Bun with 27,035 shares changing hands and closed at $5.30. Jamaican Teas had 109,363 shares trading to close at $4.30 after trading after rising by 30 cents, Knutsford […]
[…] Jamaican Teas quarterly results to December ended with profits after tax of $36.6 million or 22 cents per share, up 33 percent from $27.5 million in 2014. Profit before tax amounted to $42.5 million, is up from 54 percent from $27.5 million to $42.5 million. The results came from revenues that grew by 22 percent to $387 million, with real estate sales accounting for $40 million and other income of $15 million which includes gain on sale of investments of $7.5 million. Gross profit margin grew to 20.6 percent from 19.5 percent in 2014. Selling and marketing cost rose to $8.6 million from $7.3 million by 18.7 percent, administrative expenses was up $30 million from $25.5 million by 17.4 percent and finance cost grew by 76 percent to $10.9 million from $6.2 million. Going forward interest cost should fall due to two factors. The company has a debenture that carries a variable rate tied to treasury bills, with the latter declining the company will see a reduction in the cost additionally the first phase of the real estate development will release cash to pay down bank borrowing. There are signs that the economy is picking up and that should help in moving local sales at a faster pace than in 2015. Based on the first quarter earnings, full year results could be in the region of 85 cents per share, but this could be affected by profit from sale of real estate units and depends on any added gains that may be realized from the sale of the $125 million investments portfolio. At the end of the quarter borrowings were at $370 million with equity at $79s million. The stock which is quoted on the Jamaica Stock Exchange junior market last traded at $5. […]