Businessuite Markets
R.A. Williams Distributors Experienced 8% Decline In GP Margin Due To Lower Margins On Government Sales
Audley Reid CEO R.A. Williams Distributors Limited has released the following unaudited financial results for the third quarter ended January 31, 2025, prepared in accordance with IFRS Accounting Standards.
FINANCIAL PERFORMANCE
Revenues for the quarter totalled $438.9 million, up from $380.8 million in the same period last year, demonstrating sustained strong demand for our products. However, the Company experienced an 8% decline in gross profit margin, which stood at 46% for the quarter, primarily due to lower margins on government sales. The net profit margin after tax was 3%, compared to 16% in the prior year, demonstrating our ability to maintain profitability despite market challenges.
Operating expenses as a percentage of revenue increased to 40%, up from 33% in the previous year, mainly due to increased costs related to the right-of-use for our New Brunswick Village location, depreciation on acquired assets, and higher staffing and distribution expenses. Additionally, total assets grew by 56% year-over-year, signalling a positive trajectory and reflecting the ongoing progress of our strategic initiatives as we continue to execute them over the medium to long term.
PRODUCT LAUNCHES AND MARKET EXPANSION
This quarter marked a significant milestone with the official launch of Iracet (Levetiracetam 500 mg), a key addition to our product portfolio. As the first generic of its kind on the Jamaican market, this antiepileptic drug has received a positive response from the medical community. By the end of the quarter, Iracet was also made available at National Health Fund’s Drug-Serv Pharmacies, greatly expanding access for patients. This marks a major achievement in our mission to improve patient outcomes through affordable and accessible medications. In addition to Iracet, we introduced several products under our partnership with Fourrts. These include Cofex, an over-the-counter cough and cold remedy, as well as Sucrafil and Sucrafil-O, prescription medications used in the treatment of stomach ulcers and hyperacidity. These additions further strengthen our diverse product offering and position us to meet the growing needs of the healthcare market.
Furthermore, our Ryvis product line, launched in May 2024, continues to gain momentum. We are excited to announce the upcoming addition of 21 prescription drugs, spanning areas such as pain management, gastrointestinal health, cardiovascular care, and antibacterial treatments. This expansion enhances our market position and supports our strategy to provide comprehensive healthcare solutions for patients and healthcare providers.
OUTLOOK
As we continue to expand our product portfolio and strengthen our market presence, we remain focused on delivering value to our stakeholders. We are confident in our ability to navigate the evolving healthcare landscape, leveraging our diverse offerings and strong industry partnerships. We look forward to building on our successes in the coming quarters and achieving sustained growth.
Audley Reid CEO R.A. Williams Distributors Limited
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Businessuite Markets
Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.
Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.
The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.
Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.
Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.
Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.
Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.
Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.
Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.
While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.
Solomon Sharpe Chief Executive Officer
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