NCB is back IC Top 10

NCB Financial Group is back IC Insider.com Main Market TOP 10 stocks as the price slipped slightly by the end of the week to $135.90. There were no changes to the Junior Market TOP 10 lists.
This week’s focus:  NCB shares have been under selling pressure, with the group reporting lower second-quarter profit than the prior year and concerns about losses that can occur from their loan portfolio. They announced measures to continue their focus on cost-cutting, with a proposed restructuring of the insurance arms that will lead to lower costs. In addition, they announced the cutting of 121 staff members that will lower operating costs, going forward. Investors can expect more adjustments in the group that will flow from the acquisition of the majority shareholding of the Guardian group.
The top three Junior Market stocks this week, with the potential to gain between 260 to 695 percent by March 2021, are Caribbean Producers, followed by Lasco Financial, while Caribbean Cream and Lumber Depot share the third position. In the Main Market, the top three stocks continue to be Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with expected gains of 186 to 208 percent.
The targeted average PE ratio of the market is 20 based on profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020, up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 15.2 and the Junior Market at just 10.7, based on IC Insider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks averages a mere 5.7 at just 53 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.6 or 57 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 284 percent, for the Junior Market and 141 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is the potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021. The expected gain for each stock is based on earnings and PE ratios for the current fiscal year. The ranking of stocks is done in order of likely increases. The highest-ranked stock is the most attractive. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Steady going for IC Top 10 stocks

The Main Market put in a positive performance this past week, with the market index rising over 5,000 points, at the same time, the Junior Market bob and weaved its way to a minor loss for the week, resulting in changes to the TOP 10 lists.
The market move resulted in just two changes to the IC Insider.com TOP 10 weekly lists as the Main Market recovered almost all of the losses in the previous two weeks of 3,784 points a week ago and just under 2,000 points in the week before.
For the Junior Market TOP 10, Medical Disposables returns to the ten, after just a week’s absence, replacing General Accident that rose in the week.
This week’s focus:  General Accident enjoyed increased buying interest this past week, following the announcement from the company that they acquired an additional ten percent of the issued shares of MotorOne insurance company in Trinidad, taking their holdings to 65 percent. Also, the brokerage house, Mayberry Investments, upgraded the company’s earnings to 70 cents per share for this year, from 60 cents, previously and have a buy recommendation on the stock. IC Insider.com’s forecast is 85 cents per share for the current year. The stock closed on Friday at $6, up from $5.51 last week and traded over $8, last year, October. It now sits just below the Top 10 stocks, with the potential to reach $15 within the next nine months.
The top three Junior Market stocks, this week, with the potential to gain between 305 to 712 percent by March 2021 are Caribbean Producers, followed by Lasco Financial and Caribbean Cream, with the price dropping from $2.85 to $2.47. In the Main Market, the top three stocks continue to be Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with expected gains of 173 to 205 percent.
The targeted average PE ratio of the market is 20 based on profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020, up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 15.2 and the Junior Market at just 10.6, based on 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks averages a mere 5.6 at 53 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.8 or 58 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 291 percent, for the Junior Market and 136 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is the potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Gains for each company are based on the earnings and PE ratios for the current fiscal year.
The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. The classification of the securities is in order of likely increases, with the most attractive highest ranked first. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Limners & Bards LAB Q2 profit jumps 54%

Profit rose 26 percent before tax in the second quarter for Limners and Bards (the LAB) 20 percent for the six months to year-over-year to April this year. With no corporation taxes payable since listing in 2019, profit after tax increased 52 percent for the six months to April and 54 percent for the second quarter.
Net profit soared from $25 million in 2019 to $38 million for the quarter and the six-month net profit was up 52 percent, at $87 million from $57 million. The Lab incurred Corporation taxes of $15 million for the half-year for 2019 and $5.4 million for the 2019 April quarter. Profit for the half-year was 81 percent of pretax profit for all of 2019 when the company reported $107 million in profit before taxation, while revenues are 75 percent of the 2019 outturn. The principal activities of the company are production, media and advertising services.
Growth in profit in 2020 to date is disappointing considering the blistering pace that revenue grew by, with an increase of 44 percent for the quarter, to hit $208 million from $145 million in 2019 and 41 percent for the six months, to $471 million from $334 million in 2019. Growth over the six months for revenues “was driven by growth in media by 72.5 percent increase and agency, up 78 percent,” Steven Gooden, Chairman and Kimala Bennett, CEO, reported to shareholders in their joint commentary accompanying the quarterly. The sharp rise in revenues follows a 31 percent increase in the 2019 fiscal year over 2018.
Direct costs increased at a faster pace than revenues at 51 percent for the quarter, to $133 million and 46 percent for the six-months with expenses of $306 million. The result is a slight decline in the gross profit margin down three percentage points at 36 percent for the quarter from 39 percent in 2019 and down two percentage points, at 35 percent for the six months.
Gross profit increased by 32 percent for the quarter and 33 percent for the month at $75 million and $166 million, respectively.
Administrative and selling costs increased 44 percent to $37 million for the quarter and 55 percent year-over-year for the six-months to $79 million.
Gross cash inflows pulled in $92 million for the half-year, but after payment of dividend, loans and working capital increase $61 million remained, when added to funds on hand before cash funds ended at $352 million. Net current assets ended the period at $490 million inclusive of receivables of $119 million, down from$133 million at the end of April 2019 but up from the year-end of $84 million and cash and bank balances of $352 million. Current liabilities stand at $111 million for a healthy current ratio of 4.4. At the end of April, shareholders’ equity stood at $424 million with long-term loans and lease payable amounted to $64 million.
Earnings per share came out at 4 cents for the quarter and 9 cents for the six months. IC Insider.com is forecasting 18 cents per share for PE of 14.5 times 2020 earnings and 25 cents for 2021.
The stock traded at $2.46 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 14 times 2020 earnings.

Junior & Main Market performance gap grows

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IC Insider.com TOP 10 weekly reports indicated for some time that the best buys for Jamaican stocks are in the Junior Market. Since the drop in March, the Junior Market is recovering at a faster pace than the Main Market and the trend continues.
Following on from last week when the Junior Main Market rose four out of five trading days, the market rose three days this past week with Thursdays decline being a mere seven points and the market rising 12 points for the week.
The Main Market lost just under 2,000 points last week and lost 3,784 points this week, thus widening the performance gap between this market and the Junior Market, for the year to date.
For the Junior Market TOP 10, Elite Diagnostic price dropped from $4.17 last week to $3.81 and moved back into TOP 10, replacing Medical Disposables that inched up to $6.95 from $6.69 last week. There was no change to the TOP 10 Main Market, this past week.
The past week closed with the three top Junior Market stocks with the potential to gain between 254 to 698 percent by March 2021 are Caribbean Producers, followed by Lasco Financial and Caribbean Cream that took over from Lumber Depot that was number three last week. In the Main Market, the top three continues to be Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with expected gains of 170 to 230 percent.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020 up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 14.3 and the Junior Market at just 9.6, based on 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks averages a mere 5.7 at just 59 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.6 or 60 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 283 percent, for the Junior Market and 140 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is the potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. The expected gain for each stock is based on earnings and PE ratios for the current fiscal year. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Indies profit doubles for Q2 – but

Net profit at Indies Pharma, increased a stunning 110 percent for the second quarter to March this year, from $33 million in 2019 to $69 million. With a mere seven percent rise in the quarter, sales hit $207 million over the $193 million for the same period in 2019, but there seems to be more to this profit upsurge than meets the eye.
Sale revenues rose 11 percent for the six-month, to $401 million from $361 million in 2019 and net profit increased 36 percent to $108 million from $79 million in the prior year.
Gross profit margin improved by four percentage points for the quarter as cost of sales slipped 5 percent to $57 million from $60 million, It rose 12 percent in the half-year, just ahead of the increased revenue of $122 million, from $110 million in 2019.
Gross profit ended at $150 million for the March quarter up 13 percent from $133 million for the corresponding 2019 period and ended the half-year at $279 million up 11 percent from $251 million in 2019. Meanwhile, other income jumped 330 percent for the quarter to $150,628 and 490 percent for the six months to $848,999.
Administrative expenses declined 18 percent for the quarter, moving from $100 million to $82 million in 2020, but rose marginally, for the six months to $173 million, compared with $172 million in 2019.  Profit before exchange rate adjustments and finance cost rose 107 percent in the quarter to $69 million from $33 million and 33 percent for the six months to $106 million from $79 million in 2019.
Cash flow from operating activities brought in $138 million for the six months, but increased receivables of $74 million and purchase of fixed assets, amounting to $411 million, left the company with cash of $153 million at the end of March after loan inflows of $399 million. Shareholders’ equity stood at $875 billion, compared to $647 million at the end of March last year. Net current assets at the end of March stood at $731 million, including receivables of $367 million, cash and bank balances of $153 million and $64 million due from a director. A loan of $399 million to finance to the acquisition of a three-acre property in Ironshore, Montego Bay, for its headquarters and warehousing. Current liabilities came in at $467 million for the six months. The loan to a director represents an increase over the prior periods and is not a good signal, being sent to investors.
As impressive as the results appear, investors should be cautious. The improvement in the margin in the second quarter is out of line the year to date, with the first quarter coming at 66 percent, suggesting that some profit shifted to the second quarter from the first, most likely due to an error. There are no indications that management has come to grips dealing effectively with the expiry of drugs and the appropriate manner in booking the write-offs. While the interim figures showed the gross profit margin at the 70 percent range in the past two years, by the end of the fiscal year, it fell to 61 percent in 2018 and 63 percent in 2019 and spoiled what was looking like promising earnings, until the final numbers were in for the years. Based on the 2018 and 2019 final numbers, there is likely to be a big adjustment to inventories in the last quarter that will pull down the profit levels.
Earnings per share came out at 5 cents for the quarter and 8 cents for the six months. IC Insider.com is forecasting 15 cents per share for a PE of 19 times 2020-21 earnings.
Following the release of the recent results, the stock traded at $2.85 on the Junior Market of the Jamaica Stock Exchange and is priced well ahead of most Junior Market stocks.

Virus hits SOS in 2020 Q1

The 2019 financial year was an excellent one for Stationery and Office Supplies, with record revenues of just over $1.2 billion, resulting in net profit rising 47 percent to $135 million over the previous year.
On the heels of the robust 2019 performance, SOS started the 2020 fiscal year on a much more somber note as the Coronavirus intervened and changed what started as a promising quarter and ended with lost sales in the final month. The Deputy Managing Director, Allan McDaniels and Marjorie McDaniels,  Chief Operating Officer in their joint report accompanying the interim results, reported that the ”revenues dropped 17 percent year over year for March, after a strong showing for the first two months of the quarter.” The directors also stated that the company “was only able to deliver on one of three planned shipments of goods for the first four months of the year to Grenada.” as a result of the disruption caused by the Coronavirus.”
SOS closed out its first quarter with sales of $337 million, a 2 percent decline versus the $343.5 million in comparative period for 2019, net profit dropped a more aggressive 24 percent, from $57.4 million in 2019 to $43.8 million in 2020.
Direct expenses were down 2 percent to $172 million, but the Gross profit margin for the quarter was constant at 49 percent in the 2020 quarter, similar to the 2019 first quarter. Gross profit closed out the quarter at $165 million down slightly from $168 million in the March 2019 quarter.
Net profit margin before finance cost declined for the March quarter to 14 percent with $45.54 million generated compared to $60 million for a 17 percent margin, in 2019.
Administrative expenses grew by 11 percent to $86 million, but selling and promotional expenses were effectively flat at $23 million. SOS realized $3.3 million profit from the disposal of property and equipment, helping to offset some of the reduced operating profit for the period.
Earnings per share
came out at 18 cents for the quarter, down from 23 cents for the 2019 first quarter. IC Insider.com is forecasting $1 per share for PE of six times earnings, but that depends on how quickly the company can recover from the dislocation to sales.
The operations generated $50 million in cash inflows and the company paid out a net amount of $22 million in increased working capital, capital expenditure and loan repayment.
Cash and equivalents rose 66 percent between March 2019 and 2020 to end at $90.4 million. Current assets increased by 8 percent to $521 million with trade and other receivables accounting for $173 million, down from $182 million from a year ago. Inventories ended at $226 million from $223 million at the end of March 2019. Current liabilities stood at $120 million down 23 percent year over year from $156 million.  Current liabilities include borrowings of $30 million and payables of $91 million. Overall total loans payable amounted to $91 million. Shareholder’s equity climbed to $640 million up from $540 million at the end of March 2019 and $597 million at the end of December last year.
The stock traded at $6 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 6 times 2020 earnings.

36% sales surge at Fontana

Sales surged 36 percent at Fontana for the March 2020 quarter, to $1.1 billion, from $885 million in 2019 and rose 25 percent for the nine months, to $3.5 billion from $2.8 billion in 2019, with the company’s new Kingston store adding to revenues for the first time.

Fontana Waterloo Square Branch just after it was opened in October 2019.

Gross profit jumped similarly to sales, with a 36 percent increase in the third quarter to $404 million from $297 million in 2019. For the nine months, gross profit was up 25 percent at $1.3 million from $1 million for the comparative 2019 period.  The surge in gross profit is mainly due to revenues generated by the new flagship location at Waterloo Square in Kingston.
The store opened in October 2019 and helped in pushing revenues up by 21 percent year-over-year for the six months to December, with gross profit increasing 20 percent. Revenues to September before the Waterloo store opening were up 9 percent. In the December quarter, revenues climbed 30.5 percent and 33 percent for the March quarter. The numbers suggest that the new store contributed approximately $235 million in the December quarter to revenues and $220 million in the March quarter. Information gleaned, indicates that this may be understating the actual numbers generated by tat store. The odds suggest that there is some cannibalizing of sales at the Barbican store by the new store.
Profit before other income and finance cost rose a healthy 67 percent for the March quarter to $57 million and grew 13 percent for the nine months to $281 million. The operating profit numbers provide a great indication of the impact of the new store is having on profit.
While gross profit advanced for the third quarter, net profit dropped 27 percent from $29.7 million in 2019 to $21.6 million in 2020. Still, it was up 15 percent for the nine months to $235 million, with the 2019 results incurring taxation of $40 million the 2020 profit is down 4 percent from the pretax profit of $244 million.

Fontana patrons lined up at the cashiers In October 2019.

The decline in profit for the quarter was mainly due to a $10.6 million unrealized loss in the value of a Unit Trust investment and a near doubling of finance cost to $25 million from $13 million in 2019. Without, the loss on the investment profit would have increased in the third quarter over the 2019 amount.
Overall, operating expenses rose 32 percent to $369 million in the quarter with “the Waterloo Square location accounting for $79.7 million of the increase”, the directors advised in a report accompanying the results. Selling and promotion cost increased by 31 percent for the third quarter, up $5.3 million, from the $17 million recorded over the comparative period in 2019. Depreciation went up by a staggering 374 percent from $21 million to $100 million for the nine months, while operating expenses increased by 29 percent coming in at $1 billion from $794 million from the prior year.
Fontana generated a gross cash flow of $335 million for the nine months, pushing cash and equivalents to $533 million. As of March 2020, current assets stood at $1.4 billion with trade and other receivables landing at $66 million; inventories ended at $751 million, an increase of $130 million over March 2019. Current liabilities ended at $846 million, including the current portion of bank loans at $52 million and trade and other payables of $655 million. The company has loans payable amounting to $221 million of which, $52 million is due during the next twelve months. Shareholders’ equity closed the period $1.45 billion, up from $1.16 billion, year over year.
Earnings per share came out at 2 cents for the quarter and 19 cents for the nine months and should end the fiscal year ending June under 30 cents. IC Insider.com is forecasting 55 cents per share for PE of 10.7 times earnings.

3 changes to BUY RATED Top 10

The Junior Main Market rose four out of five trading days this past week, with the market gaining 2.5 percent while the Main Market lost just under 2,000 points for a loss of half of one percent.

Scotia Group this week’s featured stock

In the last week of May, the Junior Market index gained 3 percent in continuation of a 4 percent rise in the prior week while the Main Market rose 2 percent, with less than a percentage point rise for the previous week.
IC Insider.com TOP 10 weekly reports indicated for some time that the best buys in the Jamaican markets are in the Junior Market, investors by their actions since the market dived in March are confirming this by pushing the Junior Market at a faster pace than the Main Market.
For the Junior Market TOP 10, CAC 2000 and KLE Group dropped out, with full-year earnings, downgraded, with the loss incurred for the six months for CAC and KLE struggling from lack of business due to coronavirus, with little possibility of either of them making up grounds to put them back in TOP 10 contention, for 2020. Elite Diagnostic price climbed from $3.74 to $4.17 and moved out of the group. Replacing the stocks dropping out of the TOP 10 are Caribbean Assurance Brokers, Jamaican Teas and Medical Disposables. There was no change to the TOP 10 Main Market this past week.
This week’s focus: Scotia Group released half-year results to April this past week, but investors are concerned about the impact of bad loans on the profits of banks and they may be overreacting to it. Scotia Group reported a net income of $4.02 billion for the six months to April compared to $5.62 billion for the corresponding period last year. Excluding additional loan provisions of $1.11 billion due to the revision of expected credit losses, net income would be down $488 million or 8.7 percent. When the added loan provision and reduced fee income are taken into consideration, the second quarter, the results would have beaten the pretax profit in 2019, by a small margin.
The group loan portfolio increased $34 billion or 18 percent year over year, primarily due to 28 percent growth in commercial loans, with delinquency of only 0.8 percent. The retail loan portfolio increased 11 percent over the prior year and included a 14 percent increase in mortgages. The growth in loans is the most critical factor in determining likely gains in profit going forward.
The past week closed with the three top Junior Market stocks with the potential to gain between 260 to 692 percent by March 2021 are Caribbean Producers, followed by Lasco Financial and Lumber Depot. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group, with expected gains of 165 to 233 percent.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020 up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 14 and the Junior Market at just 9.3, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.7 at just 61 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.6 or 62 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 283 percent, for the Junior Market and 140 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is the potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Expected gains are computed based on earnings and PE ratios for the current fiscal year. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

New changes to BUY RATED stocks

Junior Main Market stocks pulled back this week, resulting in few changes to the IC Insider.com TOP 10 lists as the market may be caught in the usual early summer of consolidation ahead of the release of second-quarter results.
For Junior Market TOP 10, General Accident pulled back to an attractive level of $5.32 and re-entered the TOP 10 at the expenses of Jamaican Teas. Sagicor Group moved back into the TOP 10 Main Market with Victoria Mutual Investments dropping out.
The week closed with the three top Junior Market stocks with the potential to gain between 356 to 692 percent by March 2021 as Caribbean Producers, followed by KLE Group and Lasco Financial. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 165 to 210 percent.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020 up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 14.2 and the Junior Market at just 9.5, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.1 at 53 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.6 or 60 percent of the PE of the market.
The average projected gain for the IC TOP 10 stocks is 327 percent, for the Junior Market and 139 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is greater potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Expected gains are based on projected earnings and PE ratios for the current fiscal year. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

 

Profit up 21% at Lasco Distributors

Lasco Distributors reported full-year results to March, with revenues rising 7.5 percent to $19.5 billion and profit increasing 21.4 percent to $726 million. The year’s performance reflects a big recovery after profit fell 30 percent in the first quarter to June last year, and 10 percent to the end of the third quarter.
The company enjoyed an 8.24 percent rise in revenues for the March quarter to $5.2 billion, with profit after tax for the quarter at $183 million, up 961 percent from just $17 million in 2019. The quarter suffered from a fall in gross profit margin to 18.4 percent versus 19.2 percent in 2019. Gross profit was 19.4 percent for the fiscal year versus 19.6 percent in 2019.
Other income in the fourth quarter climbed to $60 million, a turnaround from a loss of $37 million in the March quarter in 2019, but was nearly flat at $130 million for the year to March.
The increase in cost for the year was kept close to the growth in revenues, with Administrative expenses rising 8 percent to $2.37 billion while selling and promotion expenses fell 9 percent to $703 million for the year.
Segment results show revenues rising 3.6 percent for the Consumer division for the fiscal year to $15.7 billion while the Pharmaceutical division jumped 27.7 percent to $3.8 billion. Segment profit jumped 36.5 percent for the Consumer division to $557 million but the Pharmaceutical division dropped by 18.6 percent to $154 million even as revenues rose strongly.
Earnings per share ended at 21.27 cents and IC Insider.com projects 38 cents per share for the 2021 fiscal year, with the stock trading at a PE ratio at 7.7 at the last traded price of $2.91, well below its sister company, Lasco Manufacturing.
Cash flows from operating resulted in the generation of $1 billion before working capital changes. Current assets stood at $6.9 billion, including Cash and cash equivalents of $1.47 billion at the end of March with current liabilities closing the year at $3.38 billion. Shareholders’ equity ended the year at $5.7 billion, with borrowed funds being just $116 million.
The company paid a dividend amounting to $151 million last year, with profit rising, a large pool of cash and virtually no borrowed debt, there is room for a big increase in future dividend payments that could make the stock an attractive dividend payer.