Jamaican Teas’ shareholders approved a 2 for 1 stock split at the company’s annual general meeting held on Wednesday this past week. The split is effective for shareholders on record as of April 19 with the ex split date being Thursday April 13.
Chairman of the meeting John Jackson advised shareholder, that the stock would start trading ex split as of Thursday the 13 on the Junior Market of the stock exchange.
The company reported profit of $118 million in 2016, up from $72 million in 2015, with total comprehensive profit rising to $153 million from $88 million for the same period. Profit from continuing operation rose more than 100 percent to $147 million.
The company’s Chief Executive Officer, John Mahfood, presented highlights of 2016 and an update on the new fiscal year to the end of March.
“Sales for the 3 months to March are up 38 percent while exports grew 47 percent. For the first quarter sales were up 8.5 percent over 2015. Export sales continue to perform well and will benefit from sales of five of our products that are being carried in 450 of Kroger Stores in the United States. In addition new markets have opened up in Suriname, Belize and St Marteen,” Mahfood told the nearly full house of shareholders.
“The focus for 2017 is reducing cost, improving margins, growing the export market and building brand awareness. The CEO also pointed to expansion of and renovation for the Kingston Supermarket.” Real Estate|The CEO noted that construction of 58 of the 72 units at Orchid Estates in St Thomas is complete. The rest are expected to be finished in June this year. Sales of 36 units have been concluded with another 26 units sold but not yet delivered. The emphasis is to complete the remaining units by the early summer and commence construction of an 18 unit studio apartment complex, in the Manor Park area overlooking the Kingston waterfront.
The meeting was advised of a reduction in borrowings that will lead to a reduction of interest cost for the current year from $38 million in the 2016 fiscal year and a good record of growth in the company since it listed, showing equity moving from $173 million in 2007 to $878 million last year. The financials of the company show improvement in gross profit margin reaching the highest level since 2010.
Shareholders were introduced to 5 new products that were launched since 2016, Sour Sop drink, Whole Dried Sorrel, Cocoa-Nut that includes chocolate and coconut, Chamomile Herbal Tea and Instant Sorrel with Ginger.
The company’s stock traded at $3.75 ex split on Wednesday but did not trade on Thursday on the Junior Market of the Jamaica Stock Exchange.