CPJ’s new St Lucia venture

February 6, 2014 by

The Board of Directors of Caribbean Producers Jamaica advises that the company signed a Shareholders’ Agreement on February 4th, 2014 to form a joint venture with the Du Boulay Bottling Company, the Coca Cola manufacturer operating in Castries, St. Lucia.

The new company will be called CPJ St Lucia Limited and commences operations as a foodservice distributor in Castries, St. Lucia in the near future. Caribbean Producers will retain controlling interest of this company.

Caribbean Producers Jamaica is an IC Insider’s Buy Rated Stock. Click here for the full list of recommended stocks to purchase.

Related posts | CPJ’s big jump in profits | New additions to Buy Rated list

Filed Under: Company News, General Business News Tagged With: , ,

Dividends galore coming

December 19, 2013 by

It should be a Merry Christmas for investors in the companies listed on the Jamaica Stock Exchange as several companies have either announced dividend payments or have announced plans to make one.

Sagicor Investments Jamaica Limited declared an interim dividend in the amount of 91 cents per stock unit payable on January 28, 2014 to stockholders on record as at January 7, the ex-dividend date of January 3. The company paid an interim dividend of 12 cents per stock unit on October 31, 2013 and 48 cents per stock unit on March 27, 2013. In 2012, Sagicor paid a dividend of 57 cents per stock unit on October 29, 2012 to stockholders and 74.3 cents per stock unit on April 27, 2012.

Jamaica Producers Group Limited has declared an interim dividend of $0.20 per share payable on January 28, 2014 to shareholders on record as at December 31. The ex-dividend date is December 27.

Supreme Ventures Limited has declared a dividend of $0.03 per share payable on January 8, 2014 to shareholders on record as at December 20. The ex-dividend date is December 18.

Jamaica Public Service Company Limited has declared quarterly preference share dividends payable on December 31, 2013 to shareholders on record as at December 13, as follows:

  • JPS 5% “C” – $0.025 per share, JPS 5% “D” – $0.025 per share, JPS 6% “E” – $0.030 per share
  • JPS 7% “B” – $0.035 per share. The ex-dividend date is December 11, 2013.

FirstCaribbean International Bank Limited declared a final dividend for the year ended October 31, 2013 of US$0.015 per share payable on January 30, 2014 to shareholders on record as at December 19. The ex-dividend date is December 17.

Kingston Wharves has declared an interim dividend of 8 cents per share payable on December 20, 2013 to shareholders on record as at December 13. The ex-dividend date is December 11. This brings the payment for 2013 to 16 cents per share compared with 12 cents in 2012. The company paid a final dividend of 2 cents per share in respect of the financial year ended December 2012 and an interim dividend of 8 cents per share in respect of the current year, on Thursday, March 28.  On December 21st last year, a dividend of 10 cents per share was paid.

Hardware & Lumber declared an interim dividend for the year 2013 of 30 cents per stock unit payable on January 17, 2014 to stockholders on record as at December 20. The ex-dividend date is December 18, 2013. The company last paid a dividend of 12.5 cents per stock unit on January 31, 2013.

The Board of Directors of  Scotia Group Jamaica announced a final dividend of 40 cents per stock unit payable on January 13, 2014, to stockholders on record at December 18, 2013. Scotia Investments also declared a final dividend of 45 cents payable on January 13 next year. Both companies have been paying 40 and 45 cents per share from the last quarter of 2012.

Salada Foods Jamaica declared a dividend of 40 cents per share payable on December 19, 2013 to shareholders on record as at December 3. The ex-dividend date is November 29, 2013. The company last paid a dividend of 40 cents per share on January 8, 2013.

Paramount Trading declared an interim dividend of 13.5 cents per share payable on December 10, 2013 to shareholders on record as at November 29. The ex-dividend date is November.

Lasco Distributors is to pay an interim dividend of 2.3 cents per share payable on December 10, 2013 to shareholders on record at November. The ex-dividend date is November 22. The last dividend paid was of $0.25 per share payable on July 31, 2012 based on the number of shares in existence then in June this year the company split the stock into 10 shares for each one already issued..

Jamaica Money Market Brokers declared a 16 cents per share dividend payable on December 18, 2013 to shareholders on record on November 27. The ex-dividend date is November 25. This is a 23% increase over the prior period. The last dividend paid was 10 cents per share on March 28, 2013. Last year December a dividend of 13 cents per ordinary share was paid.

Pan-Jamaican Investment Trust declared a third interim dividend of 50 cents per share payable on December 20, 2013 to shareholders on record as at November 27. The ex-dividend date is November 25. PJAM paid 45 cents on September 20, $1.10 on March 25, and 55 cents on December 20 last year.

Carreras declared an interim dividend of $1.00 per share payable on December 11, 2013 to shareholders on record as at November 20, 2013. The ex-dividend date is November18, 2013. The company last paid a dividend of a similar amount in August. The amounts represent a cut from $1.50 that investors had become accustomed to.  A slide in profits from a drop in sales have resulted in the cut.

Grace Kennedy declared an interim dividend of $0.70 per share payable on December 11, 2013 to shareholders on record as at November 22, 2013. The ex-dividend date is November 20, 2013.

Proven Investments declared a dividend of US$0.0022 per ordinary share payable on December 3, 2013 to shareholders on record at November 19, 2013. The ex-dividend date is November 15, 2013. The also declared a preference share dividend of $0.10 per share payable on December 23, 2013 to shareholders on record as at December 9, 2013. The ex-dividend date is December 5, 2013.

Dolphin Cove declared an interim dividend of $0.10 per share payable on December 4, 2013 to shareholders on record as at November 15, 2013. The ex-dividend date is November 13, 2013.

Dividends for consideration | The Board of Directors of Barita Investments Limited will consider (and if thought fit), recommend the payment of an interim dividend for the financial year ended September 30, 2013 at a meeting to be held on Friday, December 20, 2013.

The Board of Directors of Caribbean Producers Jamaica Limited will consider a dividend payment at a meeting to be held on Monday, December 23, 2013.

AMG Packaging & Paper Company will consider the payment of an interim dividend at a meeting scheduled for Tuesday, January 7, 2014.

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Caribbean Producers’ impressive profit

November 11, 2013 by

When Caribbean Producers pitched their vision of an impressive future, many investors saw a new rising star on the horizon coming from the west and the company easily raised $425 million. The shares were heavily oversubscribed and shot up as high as $3 but reported results never met the hyped expectations.

All that has now changed with the latest quarterly results to September showing a 19 percent jump in revenues and a big turnaround for CPJ in the first quarter of the 2014 fiscal year which ends in June. From a loss of US$172,981 in the 2012 quarter, the company swung into a profit of US$447,421. IC Insider projects the company should pull in profits for the full year of US$8 million, around J$0.80 per share. However, the market’s lackluster reaction to the robust results leaves one searching for reasons why CPJ is not pleasing to investors’ palates.

Cost control | Although sales rose strongly from US$14 million to US$17 million contributing to the big improvement in profit, a major factor is the improved profit margin that rose from 37 percent in 2012 to 44 percent in the latest quarter helping to increase gross profit by a strong 35 percent. Also contributing is the maintenance of other cost increases to levels below or just above revenue growth as well as a turnaround of other operating activity from a loss of US$48,000 to a surplus of US$7,041. Selling and administrative cost rose 20 percent, a shade over the rise in revenues. Depreciation increased faster than sales, at 27 percent to reach US$435,500 but finance cost rose by just 7 percent to US$476,664.

CPJSpirits450x450The numbers suggest that the expansion into meat and juice processing is now bearing fruit and should get even better as they capture more market share with their new products.

Borrowings | The company took on a large amount of debt to help fund its expansion with borrowings at US$29 million at the end of September and equity of US$13.5 million, which was quite a risky financing arrangement. Since September 2012, loans have been used to fund a US$3 million increase in inventories and receivables and US$1.6 million increase in plant and machinery.

Positive cash | The good news is that in the latest quarter, there was a strong positive cash inflow of more than US$900,000 which should end up around US$10 million by the end of the fiscal year. That will be enough, coupled with cash now on hand of US$2.7 million, to meet loan payment of US$8.6 million due by June next year and US$9.5 million due in the next twelve months.

If the forecasted cash inflows materialise, equity would jump to US$21 million and borrowed funds should fall in line with equity, subject to funds being used in further expansion by the financial year end.

The company’s working capital is in very good shape with slightly more than 2 to 1 ratio, a situation that should improve as loans are reduced.

The company will begin operations in St. Lucia in 2013 with a well-established partner in the Eastern Caribbean. The new company, CPJ St. Lucia, will primarily focus on setting up beverage system programmes for the hotel sector on the island.

Insider call | IC insider is not only forecasting continued strong growth for this new fiscal year but a continuation into the next year as well, making the stock a good medium term investment. Caribbean Producers Jamaica Limited is an IC Insider Buy Rated stock.

Related posts | Caribbean Producers Profit down | Buy Rated: TTSE stocks climbing, JSE falters |

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

CPJ’s big jump in profits

September 2, 2013 by

With net profit for the last quarter of US$1.4 million from revenues of US$19.2 million, Caribbean Producers Jamaica (CPJ)‘s June profit surpassed the previous quarter’s results by 188 percent. As a result, Earnings per Stock increased to US.13 cents compared to US.4 cents the previous year.

Management stated their release that fourth quarter performed ahead of the company’s expectations in terms of projected sales thereby contributing to the significant increase in net profit. Revenue was up 9 percent in the quarter from US$17.7 million in the corresponding period last year. This, management said, “was the result of increased production and efficiency of the manufacturing division, the consumer support of CPJ Market Kingston and Cru Bar. In addition, the hotel sector remained buoyant during the quarter as high occupancies were enjoyed throughout the period notwithstanding the closure of major hotel properties.” The growth in revenues of 9 percent for the quarter is in contrast with of just 2.7 percent for the year.

The company reported achieving a 15 percent increase on Gross Operating Profit of US$5.4 million, a significant improvement when compared to the corresponding period last year of US$4.6 million representing 28 percent and 26.4 percent gross profit margins respectively for the last quarter.

CPJWineBottlesFreeDigi150x150In spite of the big jump in the quarterly profit, net profit for year increased by just 5 percent to US$3.2 million compared to US$3.04 million at June 2012.  Earnings per stock unit moved to USD 0.29 cents. The profit was realised from revenues for the year of US$69.4 million versus US$67.5 million over the corresponding period last year, an increase of US$1.9 million or 2.7 percent. For the year, gross profit increased from US$17.4 million to US$19.9 million as operating cost fell from US$50 million to US$49.5 million. Regardless, it is the results of the June quarter that is of most import as it points the way forward for profits.

CPJ reports its results in US dollars, as such exchange rate changes are not readily visible but some of the increased profits in the quarter would be due to lower cost of some local inputs making the result for the quarter larger than normal. That may well be true but sales in the period actually rose in real terms thus giving a good glimpse of possibly strong growth in the profits for 2014. The number suggests that the 2014 earnings per share should be in US$0.50 range as they ramp up sales form the manufacturing operations.

Selling and administrative expenses increased by 16 percent for the year to US$13.47 million from US$11.6 million and interest cost rose nearly 17 percent to US$1.8 million. The depreciation charge of US$1.5 million increased by US$469 thousand or 42 percent compared to US$1.1 million in the corresponding period in 2012 representing the capital expenditure for the manufacturing and operational assets set up this year.

Too much debt | At the end of June, shareholder’s equity stood at US$13 million but borrowings was at $24.8 billion, which is far too risky. Current assets that stand at US$32 million including US$3 million in cash is well in excess of current liabilities of $15 million, but short term loans amounts to over US$9 million. Cash flow for the past year came in at US$5 million and this should climb in the new year if the last quarter numbers are indicative of the 2o14 fiscal results.

Insider call | The company seems to be benefiting from the expansion that it undertook after the initial public offer (IPO) and the promise of strong profits that investors gleaned at the time of the offer does exist. IC Insider considers this stock as Buy Rated but is concerned about the high debt load, which is well beyond acceptable levels.

Related posts | Caribbean Producers Profit down | Debt swap for Caribbean Producers|  CPJ denies major customs breach

Image courtesy of Simon Howden/FreeDigitalPhotos.net.

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

CPJ denies major customs breach

June 21, 2013 by

Statement released by Caribbean Producers Ltd | It has come to our attention that recent newspaper articles and press reports refer to breaches of the Customs Act by a major importer operating out of Western Jamaica that is listed on the Jamaica Stock Exchange.

While these reports do not name our Company, CARIBBEAN PRODUCERS (JAMAICA) LIMITED as the entity in question, we wish to advise our shareholders and the wider public that we consider such reports to be erroneous.

The Company is a leading food service company and hotel supplier in Jamaica. It sources its products from some 30 countries and imports thousands of unique items in up to 100 containers per month. The Company considers that it has worked closely with the Customs Department and the Ministry of Finance in establishing and growing its business during the course of the last 18 years.

CaribbeanProducers(CPJ)280X150Contrary to the press reports, the Company continues to have the status of ‘AUTHORISED ECONOMIC OPERATOR’ (AEO), which is granted by the Jamaica Customs Department. Changes to the AEO program were introduced by the Customs Department and the Company, along with other AEOs, will need to comply with certain requirements leading to security certification by 31 October 2013.

More recently, one of the suppliers of the Company mislabelled a relatively small number of cases of pork products that the Company inadvertently imported in a large container containing a total of approximately 500 cases of pork bellies. This matter is under discussion with the Customs Department and the relevant supplier has admitted its liability, which arose due to their error, and has offered to pay any fines on behalf of the Company, which the Company believes will not exceed J$1.1M.

Any other information published by the press in relation to the Company’s position as regards the Customs Act, including references to potential fines in the region of J$3 billion, is not correct. The Company is committed to being a good corporate citizen and responsible publicly traded company, operating within the law and with regard to the principles of good governance.

Filed Under: Company News, General Business News Tagged With: ,

TTSE: It’s WITCO again, up $1

June 18, 2013 by

Tuesday, 18th June 2013 | With 600 shares traded, West Indian Tobacco marched on to new record again in Tuesday’s trading as the stock jumped $1 to close at $114 on a day when 15 securities traded with 5 advancing, 1 declined and 9 traded firm. Guardian Holdings suffered the day’s sole decline, falling $0.45 to end the day at $16.00.

Trading in the main market resulted in 157,621 shares crossing the floor of the Exchange valued at $2,624,514. National Commercial Bank Jamaica traded 60,781 shares for $73,196. National Flour Mills had 30,000 shares trading for $22,500. ANSA Mcal exchanged 19,254 shares with a value of $1,294,200, while Grace Kennedy added 15,163 shares valued at $61,410 to the trading activity.

Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 95,425 shares valued at $2,147,063.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 6 stocks were higher, with 3 stocks that had offers lower than their last selling price, an improvement over Monday numbers. The Indicator points to continued moderate market gains ahead.

52 weeks high | Three stocks traded at new 52 weeks high with Unilever closing with a bid of $52.34 versus the closing price of $52.32 for 396 shares. The stock had 1,226 units trading on Tuesday, there was no stock on offer at the close. The same is true of One Caribbean Media which hit a new 52 weeks high of $17.30 with 800 shares trading.

This market seems poised to price certain stocks higher as supply for a number of them is low. But not all are likely to participate in upward price movement.TTSEJun18

Filed Under: Stock Market, TTSE Market Tagged With: , , ,

FX: Selling exceed buying by US$4.7M

June 17, 2013 by

Monday, 17 June 2013 | Authorised dealers purchased less foreign exchange than they sold today at higher prices than on Friday and sold all three major currencies at higher rates as well. While they bought the US dollar for 29 cents more than on Friday, they sold it for only 7.7 cents more than Friday’s rate as the US dollar sold averaging at $101.164. The Canadian dollar was bought for 61.5 cents more and sold for 45 cents more and the Pound sterling was bought for 54 more and sold for 49 more than on Friday.

US$28.16 was purchased and US$34.65 was sold on a day when C$1.4 million was purchased at an average rate of $97.86 and C$1.2 was sold at $99.95, the Pound sterling accounted for £2.24 million at $156.86 and selling took place at $159.78 as £1.87 million was sold.

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JSE jumps as Scotia buys JMMB shares

June 4, 2013 by

Monday, 3rd June 2013 | JMMB traded 4.57 million shares, all of which were bought by Scotia Investments for their own account and for clients except for 4,300 units bought by JMMB but sold from in-house for a client. Of the total amount of JMMB shares that traded, 2.7 million units traded at $9.50 each. The rest of the trades took place mostly at $9 per share. The stock traded up 50 cents for the day.

The All Jamaica Composite index closed up a strong 1,544.25 points to close 89,987.54 on day that saw 7.36 million units trading. The index closed at the highest level since January 8th this year when it closed at 89,699.10.

Stocks Gains | Jamaica Broilers traded up to $5 with 1.5 million shares changing hands. Kingston Wharves closed at 52 weeks high of $8, up 40 cents, while trading 10,000 shares on the day. Carreras and Grace Kennedy continued to be in demand, with the former trading 128,110 shares valued at $7.73 million while loosing 45 cents in closing at $60.45 and Grace trading 122,331 units valued at $7.35 million without a price change.

Bull2_150X150Junior market | The junior market was active with AMG Packaging trading 276,077 units in one trade with the stock closing up 10 cents at $4.15. Paramount traded 163,597 units while closing at an all time high of $3.60 up 20 cents. The stock closed with a bid of 559,806 units at $3.50 with no stock on offer which suggests that it will trade higher before long. Access Finance closed down 41 cents to $7.59 on very low volume, Blue Power traded up 71 cents to close at $7.52, an all time high, as 100,200 shares traded. All three Lasco companies traded but not heavily. Manufacturing closed at $15.35 off 4 cents from Friday’s close, Distributors fell slightly, by 10 cents and Financial Services gained 20 cents on Friday’s last traded price.

Advancing stocks greater |  There was trading in 23 stocks on a day that was not all that active. The momentum of the market continues with advancing stocks continuing to be most dominant over declining ones 14 to 5. Four stocks traded at 52 weeks high including Proven ordinary which traded up 0.5 US cents to close at 11.5 US cents.

An indication of things to come can be seen from the bid and offers in relation to the last selling prices. At the end of trading there were 7 stocks with bids higher and only 1 stock with offer that is lower than the last sale price.

  • The main Market Index advanced by 877.17 points (1.00%) to close at 88,455.09.
  • The Select Index advanced by 48.71 points (2.00%) to close at 2,483.29.
  • The All Jamaican Composite was up by 1,544.25 points (1.75%) to 89,987.54.
  • The Junior Market Index advanced by 7.96 points (1.05%) to close at 767.89.
  • The Combined Index advanced by 900.62 points (1.00%) to close at 90,624.63.
  • The US Equities Index advanced by 3.57 points (4.54%) to close at 82.14.

JSEIndicesJun3

 

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

FX: Buying outpace selling, rates are up

May 27, 2013 by

Friday, 24 May 2013 | The rate for the pound sterling climbed on Friday by 66.7 cents on the buying side and 42 cents on the sell side. The US dollar picked 13 cents on the buy side and barely moved up on the average sell rate. Buying of the Canadian dollar climbed by 10 cents but fell 56 cents when sold. This all happened when there was more buying than selling of the three main currencies that traded.

Buying of the US dollar by authorised dealers was more than US$6 million greater the amount sold as US$36.6 million was purchased while selling was $30.2 million. Pound sterling purchased amounted to ₤2.5 million while sales amounted to ₤1.23 million. The amount of Canadian dollar purchased was Can$845,278 with Can$769,735 being sold.

The highest buying rates for all three currencies climbed on Friday noticeably with the US dollar moving up 60 cents, the Canadian 30 cents and the pound 50 cents. The lowest buying rate was flat to virtually flat except for the pound which fell by 25 cents. The highest selling rate for Canadian and US dollars was the same as the trading day before but the pound climbed $3.09 while dropping $1.90 for the lowest. The US dollar lowest rate dropped back by $14.95 and Canadian by 70 cents.

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Filed Under: FX Market, Stock Market Tagged With: , ,

Debt swap for Caribbean Producers

May 3, 2013 by

CPJ is following the example of the Government of Jamaica in pursuing a debt swap. This one, unlike that of the government’s, will not result in any loss in capital for the holders of the debt. The board recently gave approval for the company to raise $500 million in floating rate secured promissory note. The proceeds will be used to retire loans they current have including related parties loans which climbed to US$12.3 million at the end of March.

But loan capital is not what the company needs, it needs more equity capital. At the end of March, loans and advances by related parties amounted to nearly US$24 million, equity is less than half of that at US$11.7 million. Cash flow is about US$5 million for this year most of which has already been utilized in long term capital expenditure.

Stock Outlook | The working capital on paper is well within accepted norms. The only problem is that liquid funds are not plentiful, with less than US$1 million dollars on the books. The directors are causing the company to skate on thin ice which is what is happening. Seeking a debt swap may save on the interest cost but will merely dent the poor debt to equity ratio, which is well out of line and prudence dictates should be put right fast, not later.

Filed Under: Company News, General Business News Tagged With: ,