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Future Energy Source Records Best Quarterly Performance To Date.

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Jeremy Barnes Managing Director For Future Energy Source Company Limited Has Released The Following Report For The Third (3rd) Quarter Ended December 31, 2023 For The Financial Year April 1, 2023 To March 31, 2024

Overview
We are pleased to report that the Company has achieved its best quarterly performance to date. The Company’s performance reflects an increase in gross profit, operating profit (EBIT) and EBITDA whilst acquiring and integrating an additional LPG filling plant (FESGAS Naggo Head), improving its brand awareness, and increasing its advertising, depreciation and interest expenditures.

The Company achieved:
1. Gross profit: J$423.21 million up J$182.82 million or 76.0% vs Q3 December 2022
2. EBIT: J$190.66 million up J$35.07 million or 22.5% vs Q3 December 2022
3. EBITDA: J$248.15 million up J$85.56 million or 52.6% vs Q3 December 2022
4. Net profit: J$149.25 million down J$4.07 million or 2.7% vs Q3 December 2022
5. YTD (9 month’s) Net Profit: J$465.95 million up J$31.56 million or 7.3%
6. Book value of equity: J$1.768 billion, which is up 35.8% since the last financial year ended March 31,2023 and up 51.8% or J$602.92 million when compared to Q3 December 30, 2022.

Further, the Company was able to:
1. Add its 21st FESCO branded retail service station to its network, FESCO Port Maria, in mid-December;
2. Acquire, integrate and operate its 2nd LPG filling plant facility, FESGAS Naggo Head;
3. Secure approval for its 2nd company owned and company operated service station, FESCO OVAL on Spanish Town Road;
4. Become the authorised distributor of Castrol motor oils for Jamaica;
5. Continue its service station network expansion efforts and work-in-progress Capex/investments.

Financial Highlights:

For the quarter ended December 31, 2023, FESCO recorded Turnover/Revenues of J$7,589.02 million which reflects a 13.0% or J$875.65 million year over year increase. Several factors affect revenue/turnover with the supply price of fuel being a major component.

On average, this quarter’s refinery prices have remained relatively flat for gasoline and have decreased significantly for diesel. Gasoline prices increased by between 0.75% and 1.9% or J$1.35- J$3.47 per litre and decreased by J$33.38 – J$34.04 for diesel relative to the similar period last year Q3 ending December 31, 2022.
Accordingly, FESCO’s growth in Turnover for the quarter (Q3) ended December 2023, relative to Q3 December 2022, reflects significant growth in litres of fuel sold.

FESCO recorded gross profit of J$423.21 million for the quarter which reflects growth of 76.0% or J$182.82 million year over year. The Company’s YTD Q3 2023/2024 gross profit of J$1,141.72 surpasses the gross profits earned for the entire year ended March 2023 by 28.6% or J$253.91 million and exceeds its YTD Q3 2022/2023 gross profits by J$495.08 million. The improvement in gross profit reflects both increasing throughput
(measured in litres of fuel sold) and diversification of product offerings (fuel types including LPG) and services (increased retail presence).

Operating Expenses of J$232.56 million, for the period, is up J$147.75 million versus the similar period last year or 174.2%.

This expansion of expenses directly reflects the expanded:
1. Operating locations including the additions of: FESCO Kitson Town, FESGAS Bernard Lodge and FESGAS Naggo Head;

2. Asset base which includes significant LPG and service station assets;

3. Operational scope (which now includes increased retailing and manufacturing);

4. Early stage new business costs including but not limited to:
a. business acquisition;
b. property acquisition and development costs; and
c. business integration costs.

The Company is committed to and has expanded its Marketing and Advertising expenditure to create brand awareness for its “FESGAS” branded LPG products, among other initiatives.

For the quarter, the Company’s advertising expenditure was J$14.06 million which is up 149.4% or J$8.43 million compared to Q3 December 2022. The Company’s Q3 (2023) YTD advertising expenditure of J$42.92 million exceeds last year’s Q3 (2022) YTD expenditure by J$29.62 million.

A look ahead
FESCO continues to monitor the moderating inflationary forces within the economy, the recent interest “freeze” by the central bank, the near full employment in many sectors of the economy, a resilient and expanding tourism product among other factors affecting consumer consumption as well as our allocation of investment capital. The Company must also navigate industry-related margin contractionary forces and consolidation within the industry. The Company remains mindful of opportunities for growth and further investment. Internal or self-funding via profit generation, profit retention, at this time, has proven to be the most efficient and cost-effective source of capital to fund growth.

The Company recently received approval for its proposed service station on Spanish Town Road, FESCO Oval. FESCO Oval will be a company owned and company operated service station (COCO) and will increase our retail presence within the Kingston and St Andrew (KSA) region. The development promises to showcase the creativity, forward thinking, mindfulness, commitment to community and the immense potential of Jamaica and Jamaicans and we believe it exemplifies our tag line and motto, “Proudly Jamaican”. The development will take approximately fifteen (15) months to execute and we anticipate its opening during Q2 2025 (i.e. July 2025 – September 2025).

Finally, the Company will continue to make investments in real assets and equipment to support expanding its service station businesses and network, its industrial client base, and LPG business.

For More Information CLICK HERE

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ANSA McAL Group Announces Formation Of Joint Venture Company, Globus ANSA Private Limited, With Globus Spirits Limited In India.

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A. Norman Sabga Executive Chairman of the ANSA McAL Group of Companies has announced the formation of the joint venture company, Globus ANSA Private Limited, with Globus Spirits Limited in India.

In a release posted on the Trinidad and Tobago Stock Exchange ANSA McAL confirmed that with effect from 4th April 2024, ANSA McAL Limited (“ANSA McAL”) entered into a joint venture agreement with Globus Spirits Limited (“GSL”) to establish Globus ANSA Private Limited (“GAPL”).

Each party will hold fifty percent (50%) of the issued and allotted ordinary share capital of GAPL.

“This collaboration signifies a new era in the Indian alcoholic beverages industry, driving innovation and growth, ‘

“Globus ANSA Private Limited will specialise in manufacturing and distributing alcoholic beverages across the Indian subcontinent, leveraging the strength of both ANSA McAL and Globus Spirits Limited,” said Mr. Shekhar Swarup, Managing Director for Globus Spirits Limited. “This collaboration signifies a new era in the Indian alcoholic beverages industry, driving innovation and growth, ‘he stated

 

 

 

Globus Spirits Ltd is one of the leading players in the Alcohol industry in North India distributing brands in the Consumer Segment including:
• GR8 Times.
• Rajputana.
• Globus Spirits Dry Gin.
• White. Lace.
• Governors’ Reserve Red.
• Governors’ Reserve Blue.
• Oakton.
• Laffaire. Napoleon.

Trinidad and Tobago conglomerate ANSA McAL Group has over 142 years of rich history representing many world-renowned brands, including some of their own home-grown successes. The partnership marks a significant milestone in ANSA McAL Group’s journey, merging cultures and expertise to revolutionise the beer industry in India, with their icon Carib brand and leading the charge.

Norman Sabga Executive Chairman of the ANSA McAL Group of Companies, highlighted the immense opportunities in India and their commitment to delivering unparalleled value through this partnership.

“We are confident that our collaboration will allow us to seize the growing demand for high quality beverages by captivating palates with our distinctive products” he said

ANSA McAL is now poised to be an equal Shareholder of GAPL, an Indian company which
would produce, market, sell, distribute and retail beer and other beverages.

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Jamaica Broilers Group Reporting Strong Top and Bottom Line Performance for January 2024 Quarter

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Christopher E. Levy Group President & CEO of Jamaica Broilers Group Limited now release the following unaudited financial results for the quarter ended January 27, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS).

The Group produced a net profit attributable to shareholders of $1.3 billion, for the quarter ended January 27, 2024. The operations of the Group continue to be strong, and our gross margins are consistent with expectations.

Quarterly Group revenues amounted to $23.6 billion, a 4% increase above the $22.7 billion achieved in the corresponding quarter.

Our gross profit for the quarter was $5.9 billion, a 7% increase above the $5.5 billion achieved in the corresponding quarter in the prior year.

Jamaica Operations reported a segment result of $5.9 billion which was $448 million or 8% above last year’s segment result. Total revenue for our Jamaica Operations showed an increase of 2% over the prior year nine-month period. This increase was primarily driven by the growth in the sale and export of poultry and implementation of cost containment efforts.

Our US Operations reported a segment result of $3 billion which was $226 million or 8% above last year’s segment result. This increase was driven by increased volumes of poultry meat and eggs, as well as the implementation of cost management initiatives.
Total revenue for the US Operations increased by 3% over the prior year nine-month period.

We have begun to realise additional volumes through the US operations, which has resulted in increased financing requirements primarily around working capital.

For More Information CLICK HERE

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Main Event Reporting Net Profit Of JA$100M For Quarter Ended January 2024

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Solomon Sharpe Chief Executive Officer of Main Event Entertainment Group Limited has released the following unaudited financial statements for the quarter ended January 31, 2024 (Q1).

The company continues to have solid results in an increasingly competitive and largely difficult environment. The company’s performance was anchored by diversifying our client base through strategic targeting and efficient management of our operations.

The company reported net profit of $100.254M for the quarter ended January 31, 2024, representing a decline of 15% or $17.695M relative to the corresponding period of 2023. Consequently, earnings per share decreased by 15% to $0.33 per share.

Total revenues for the quarter ended January 31, 2024 declined by $59.235M to $567.752M, reflecting a decrease of 9% over the corresponding period. This was mainly due to a one-off event for one of our major clients which is not likely to reoccur in subsequent periods.

The company was strategic in its efforts to protect the margins and the gross profit for the quarter was $315.822M compared to the $312.611M earned in 2023. This demonstrates the company’s ability to be alert and responsive to market conditions. Gross margins improved to 56%, up from 50% in the corresponding period.

The company continues to generate revenues from activities requiring reduced external support.

For more information CLICK HERE

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The LAB Reporting Higher Net Profits Based On Strong Focus On Agency Segment

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Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited financial statements for the three months ended January 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated results include the subsidiary Scope Caribbean Limited (Scope) whose principal business is the scouting, placement and management of talent while expanding and maintaining a database of quality talent.

The LAB achieved higher net profits when compared to the corresponding period last year. This was based on the strong focus on the Agency Segment of the business for this quarter, as the company continued to build brands. The Agency Segment provides the highest profit margin and as such bolstered the results for the period. The company also implemented cost containment measures, which resulted in a 19.2% reduction in administrative expenses when compared to prior period. We continue to maintain a strong balance sheet and our cash position grew stronger over the period. Our asset base increased, as we reinvested in the business through further upgrading film studio facilities.

Revenue for the three months ended January 31, 2023, was $219.4 million, down 11.4% relative to the prior period. This decline was primarily attributable to a reduction in production during the period due to its cyclical nature. Notwithstanding this, the Agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: Media totalling $118.3 million, followed by Production with $29.3 million and Agency with $71.6 million.

The company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.

Gross Profit for the three months was $88.9 million, down 3.3% when compared to the corresponding period. Net Profit achieved was $26.2 million, up 295.7% relative to the comparable period. due to higher gross profits from the agency segment and lower administrative expenses. Administrative expenses decreased by $16.3 million or 19.2% in comparison to the corresponding period last year. These decreases are primarily due to reduction in contractor and staff cost.

The consolidated Balance Sheet saw total assets increasing by $119 million or 15.1% to $909.3 million compared to $790.2 million in the corresponding period. This increase in assets is driven by building and film studio facilities improvement and purchases of new production equipment to facilitate future growth.

Current Assets amounted to $731.7 million, increasing by $107.6 million over the prior year, primarily due to a 43.6% increase in cash and cash equivalent. Management continues to maintain tight monitoring and control over receivables. Cash and cash equivalent increased by $142.4 million over the corresponding period last year. Shareholders’ equity grew to $624 million, up from $548.1 million or 13.9% over the corresponding period last year.

The LAB is pleased to report significant progress in our strategic initiatives. We have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law,” as outlined at our last Annual General Meeting (AGM). Additionally, Pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.

In line with our strategic objectives, we are actively engaging with international networks and digital streaming platforms to secure distribution opportunities for our content upon production completion. This proactive approach ensures that our creative endeavours have a suitable platform to reach global audiences.

For More Information CLICK HERE

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Maximum Participating Voting Share Capital Of Companies Listed On The Junior Stock Exchange Moving From JA$500 Million To JA$750 Million

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“Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Government of Jamaica through the Ministry of Finance and the Public Service has announced that they have increased the participating share capital limit from $500 million to $750 million for companies on the Junior Market of the Jamaica Stock Exchange.

“This is very exciting news for the Exchange,” commented Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange. “This is an exceptionally good move by the Government as this will allow small and medium sized companies to come to market to raise additional capital for business expansion and assist new companies to raise capital and to consider this capital raising option as viable. She stated that “Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Junior Market was established in 2009 to allow small and medium sized companies (SMEs) to raise a maximum of $500 million dollars during an initial public offering (IPO). The Government’s new initiative towards companies listed on the Junior Market now allows them to raise up to $750 million dollars, an increase of $250 million dollars.

Source Jamaica Stock Exchange

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