D&G profit nearly doubles in Q3

D&GRedStrip_Banner600x250A 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.

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  2. […] changing hands to close at 51 cents, Carreras traded 70,682 shares to close $1.25 higher at $50.25, Desnoes and Geddes (D&G) traded just 3,000 shares to close at $8, after gaining $1. The D&G stock closed with […]

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