Red Stripe Beer

Profit jumps 32% in Q2 for Angostura

August 7, 2021 by IC Insider.com

Profit before tax popped 20 percent for the Trinidad based Angostura Holdings, for the six-month to June 2021, to $74 million, up from $62 million in 2020 comparative period, while profit before tax rose 10 percent to $46 million from $42 million and profit after tax climbed 32 percent to $36.5 million for the quarter from $28 million and moved to 36 percent from $41 million in the half year to $55.6 million in 2021.

Angostura Holdings aged rum.

Revenue rose 6 percent to $218 million from $205 million for the quarter and was up 3 percent to $370 million for the half year from $358 million in 2020.
“Owing to improvement in the efficiency of the wastewater treatment facility, gross profit margins increased to 48 percent from 46 percent over the prior period as distillery alcohol production normalized in 2021 compared to 2020,” Terrence Bharath, chairman, advised shareholders in his report on the results. Cost of goods sold slipped by one percent to $117 million from $118 million in 2020 and for the half year rose at a slower pace than the increase in revenues after rising by just one percent to $194 million from $192 million in 2020. Gross profit popped 16 percent to $102 million from $87 million, while it rose 6 percent to $176 million for the six months to June 2021, from $167 million in 2020.

Angostura Bitters produced by the company.

Heineken offered J$31 per share for D&G in 2015 when the stock was trading at J$8 on the JSE.

Improvement in international markets, in terms of revenue and credit outlook, directly impacted the Expected Credit Loss Model resulting in a significant write back $2.7 million in the June quarter versus a write provision of $8 million in 2020 and write back of $4.2 million for the half year compared to a provision of $8.4 million in 2020.
Investment income rose to $3.5 million in the June quarter from $3 million last year and climbed from $5.5 million to $8 million for the six-month period.
“Revenue growth over the prior year was mainly driven by recovery in sale of bitters in the markets of Australasia, North America, Europe and the UK and rum in Europe, but faced more severe revenue challenges in the local Trinidad market,” the chairman informed shareholders.
Selling and marketing expenses rose sharply by 64 percent to $36.3 million in the June quarter and 15 percent for the half year to $67.5 million while Administrative expenses rose 20 percent to $25 million for the June quarter to $25 million and 7 percent for the six months to June to $44.6 million.
Current assets Net cash from operating activities delivered $71 million, but investing activities utilized $79 million, leaving negative funds flow of $10 million and $14 million in 2020.
Taxation slipped to $9.8 million from $14.2 million in the quarter and ended at $18. 4 million for the half year from $39 million in 2020.
Current assets amount to $1.08 billion and Current liabilities $104 million. Investments ended at $568 million and cash and equivalents closed the period at $51 million. Shareholders’ equity stood at $1.3 billion.
Earnings per share came in at 18 cents, up from 13 cents in 2020 for the June quarter and 27 cents for the half year versus 20 cents in 2020 and should end the year around 90 cents and would put the PE ratio at 18 times 2021 earnings at the last traded price of $16.48 on the Trinidad and Tobago Stock Exchange.
The Board of Directors approved an interim dividend of 9 cents per share to be paid on October 25.
The stock may be fully valued currently, based on PE ratio, but it possesses a good brand and products that could become attractive to international spirit companies that may well be prepared to pay a nice premium for it, as was done in Jamaica for Desnoes and Geddes brewers of the world famed Red Stripe beer and Lascelles Demercado producers of the Appleton brand of rums.

Filed Under: Company News, Company Results Tagged With: Angostura Bitters, Appleton Estate Rum, Desnoes and Geddes’, Emerging markets, Lascelles deMercado, Red Stripe Beer, TTSE

D&G profit fell in Q4

August 23, 2015 by IC Insider.com

Profit fell to $815 million for Desnoes & Geddes, the brewers of the famous Red Stripe beer, in the final quarter of the fiscal year to June, versus $1 billion in 2014. Earnings per share came in at 83 cents with $1.12 in 2014. The latter includes gain on sale of investments in Eastern Caribbean breweries, equal to 35 cents per share. IC Insider is forecasting $1.05 per share earnings, for the year to June 2016.
Revenues came in at $4.4 billion for the quarter versus $3.8 billion in 2014, for the full year $16 billion versus $14.3 billion. Sales growth was helped by a combination of increased volume, product mix and price increase, the company stated. Royalties earned amounted to $533 million in the year and $525 million in 2014.
General, selling and administrative expenses were virtually static for the year at $1.26 billion compared to $1.22 billion but marketing cost rose 37 percent to $1.37 billion against an increase of 15.7 percent to $5.46 billion in gross profit.
For 2015, the company paid a dividend of 13 cents in March while a dividend 27 cents was paid in December last year, providing a yield of 12 percent based on the stock price of $4.10 on August 21 last year. Based on the increased profit and past dividend payments, investors can expect to see an increase for the next dividend payment.
The company’s stock last traded at $7 on Friday on the Jamaica Stock Exchange giving it a PE ratio of 8.4 and a 100 percent premium to net asset value.
The stock valuation may be on the high side just now compared with others in the market, there are a few things investors should focus on. These include the likelihood of increased sales that should occur in the period leading up to the next general elections, with the high dividend yield and falling interest rates the stock will become more attractive as an income generator in the not too distant future.

Filed Under: Company News, Company Results Tagged With: Desnoes & Geddes, Jamaica Stock Exchange, Red Stripe Beer

D&G profit nearly doubles in Q3

May 18, 2015 by IC Insider.com

A combination of increased sales’ volume and price adjustment saw Desnoes & Geddes, the producers of the world famous Red Stripe beer, enjoying a 20 percent jump in sales revenues in the March 2015 quarter.
Sales reached $2.96 billion and a near doubling in profit to $367 million for an 88 percent increase from $196 million in 2014. For the nine months to March profit was up a more sedate 29 percent on a 14 percent sales increase to $9.6 billion over 2014.
Local sales rose 20 percent in the March quarter and exports were up only 6 percent, for the year to March exports grew 11 percent and local sales 13 percent.
Earnings per share for the quarter came in at 13 cents and 54 cents for the nine months and should end at 80 cents for the full year and $1.05 for 2016 fiscal year. Gross profit margin increased during the nine months period to 41.4 percent from 39.94 percent and 37.7 percent during the quarter from 36.2 percent.
The March quarter saw a turnaround in the results of the distribution company it’s a joint venture partner with Pepsi in, which contributed $20 million in the quarter compared with a $47 million loss in 2014 and for the nine months, losses increased to $62 million from $46. Marketing cost jumped to a billion for the nine months from $737 million in 2014. Other costs were held fairly tight.
The period ended with net fixed assets increasing by $1.5 billion but the company still ended with cash funds at $1.38 billion and equity of $9.4 billion.
The stock is listed on the Jamaica Stock Exchange and closed last at $7.20, with a PE ratio of 9.

Filed Under: Company News, Company Results Tagged With: Desnoes & Geddes, Jamaica Stock Exchange, Red Stripe Beer

Tax cut help boost D&G profit 30%

November 5, 2014 by IC Insider.com

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Desnoes & Geddes, brewers of the world famous Red Stripe beer, racked up a 30 percent increase in after tax profit, for the quarter to September this year, thanks partly to a reduction in tax, a 3 percent revenue increase and static to reducing cost. Profit before tax increased 14.5 percent to $640 million from $559 million in 2013. Revenues grew just 3 percent to $3.4 billion in the quarter but taxes fell from $192 million in the 2013 to $164 million as the tax rate for companies dropped to 25 percent form 30 percent for 2013.
Gross profit margin improved to 71.76 percent, in the latest quarter, from 69.25 percent last year. The improvement in the margin flowed in part from what management says are “efficiency gains from the investment in the brewery modernization such as the new combined heat and power plant.”
Gross profit improved by 14.7 percent to reach $1.156, as local sales grew 4.8 percent year over year, to reach $2.95 billion. Exports sales fell to $414 million from $465 million in 2013 leading to a fall in gross profit in the export segment to $226 from $291 million. Management stated that the reduction in exports is due to shift in the timing of a Shipment from the September quarter to the December quarter.
The company benefited from lower general, selling and administrative cost which fell to $261 million in the quarter, compared to $288 million in the 2013 quarter.
Cash funds at the end of the quarter, stood at $1.79 billion. The company declared a dividend of 27 cents per share, payable in December to cost $760 million and will be adequately funded by the earnings, for the December quarter. With the planned dividend, the company will pay 52 cents per share, in dividend for the 2014, providing a yield of just over 10 percent, based on the price of $5.10 at the end of 2013.
IC Insider is projecting earnings of 85 cents per share, for the year ending June 2015 and $1.05, for the following year. The stock which last sold at $4.95 remains an IC insider BUY RATED stock.