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Indies Pharma Jamaica Crosses The J$1B Line In Earned Gross Revenues For Fiscal 2023

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Vishnu V. Muppuri (Mrs.) Co-Founder, Executive Director & COO for Indies Pharma Jamaica Limited Has Released The Following Twelve-Months Unaudited Financial Results For The Period Ending 31 October, 2023.

For the Twelve months ended October 31, 2023, Indies Pharma Jamaica Limited earned gross revenues of J$1,055 billion, 12.61% higher than the J$937 million in the prior comparable period of 2022.

Gross profit for the Twelve months increased to J$727 million, representing a 10.83% increase or J$71 million when compared to a similar period in 2022. This is attributable mainly to the enhanced customer loyalty towards the company’s product and service quality. The main contributor to our gross margin is increase in the sales which has provided us a favorable impact on our contribution and profitability.

Administrative expenses increased by 23.06% or J$86 million year over year principally due to a higher level of fleet vehicle maintenance, salaries, and royalty obligation.

The ‘Profit from Operations increased by 0.24% of J$283.5 million in 2023 when compared with $282.8 million during the same period of 2022. This increase in admin expenses also caused ‘Net Profit for the twelve months’ to decrease by 4.71% to J$210 million from J$220 million for the same twelve-month period of 2022.

In addition to the above, as of the last quarter of this fiscal year, the five-year zero corporate income tax (CIT) incentive period has come to an end. Going forward the company’s performance will now attract a CIT bracket of 12.5% over the next 5 years. Despite 12.5% CIT being applied during the last quarter of the current fiscal year, the company delivered the net profits almost the same as last year which resonates with the ethos of the company, stability, and consistency in delivering the positive yield to the investors.

Total assets at the end of the Twelve months stood at J$2.2 billion which represents an 8% increase or $158 million to the comparative period of 2022, the major contributor being the value increment in the intangible assets (Favorable) from J$379 million in 2022 to J$440 million in 2023 (J$61Million Movement).

Shareholders’ equity has increased by 5.14% this year to J$1.216 billion compared to J$1.156 billion in the prior period of 2022 and total liabilities increased by 11.13% in 2023 to J$990 million from J$891 million in 2022. The main contributing factor to the increase in total liability is the extension granted to occupied leased premises.

❖ Earnings per share (EPS) is S0.1578 for the twelve-months period in 2023 compared to $0.1656 for the same period in 2022.

Results For The Fourth Quarter Ended 31 October 2023

For the fourth quarter that ended October 2023, revenues increased by J$59 million (28.10%) to end at J$268 million from J$209 million in the corresponding periods of 2022. This is a result of the strong demand for the Indies Pharma products along with the strategies implemented to drive sales.

Gross profit for the quarter increased to $172 million which represented an increase of 25.05% or $34 million in comparison to $137 million for the previous quarter 2022. The main contribution came from our sales volume and value increment.
Other contributing factors are the robust approach taken in monitoring inventory and mitigating the writing-off of expired stock.

Administrative Expenses increased by 24.24% (J$22 million) to $116 million for the current quarter in comparison to $93.5 million in the corresponding quarter of the prior year.

Increased expenditures in several areas including Bioprist Royalty expenses, because of a change in accounting policy re the computation, accrual process, and booking of same. This increase was expected in this current year of adoption; however, this will normalize in the subsequent year.

Building maintenance & repairs, Admin & Drug permits and motor vehicle expenses were also contributory factors to the operating expenses (Opex) increase.

Net Profit for the three months has increased by 4.48% to J$34 million from J$33 million during the same three-month period in 2023 and 2022 respectively.

The $805 million bond attained in 2020 towards “Growth Capital” continues to remain on the books as we continue to grow the company through the organic development and approval of two new drugs at the USFDA for the United States Market.

As stated in our 2nd Quarter JSE filing, we have successfully submitted our very first ANDA – Abbreviated New Drug Application (generic drug dossier) on the 25 January 2023 at the USFDA. The same was accepted by the USFDA without any rejections or queries on the 24th of February 2023 with a gold date of approval as November 2023. Queries from the USFDA during this fourth quarter were uneventful and were effectively addressed and filed by us.

❖ Earnings per share (EPS) is $0.0258 during the fourth quarter of 2023 compared to $0.0248 for the same period in 2022.

The Company remains healthy, growth focused and continues to deliver and maintain a consistent upward trend in its performance and profitability to its shareholders.

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Decline In Marketing Spend By Major Clients And Lower Than Normal Return From Carnival 2024, Impacts Main Event Q2 2024 Weak Performance.

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Solomon Sharpe Chief Executive Officer For Main Event Entertainment Group Limited Has Released The Following Unaudited Financial Statements For The Quarter Ended April 30, 2024 (Q2).

Performance Highlights:
The company generated revenue of $418.575 million for the second quarter ended April 30, 2024. This represents a decline of $113.313 million or 21% for the quarter when compared to the second quarter of 2023.

For the half year, the company earned revenue of $986.327 million, a decline of $172.548 million or 15% relative to the corresponding period. The decline is the result of a lower performance in traditional revenue sources, caused by the changing landscape within the
entertainment sector, a decline in marketing spend by some of our major clients and a lower-than normal return from Carnival in Jamaica, 2024. The company’s revenue was also impacted by biennial events which contributed significantly to our revenue during the second quarter of the corresponding period.

Gross profit for the quarter was $198.064 million. Compared to the second quarter of 2023, this represents a decrease of $104.669 million 16%; while for the six months ended April 2024, gross profits fell by $101.457 million or 16% to $513.887 million.

Notably, the company has invested heavily in critical maintenance exercises to ensure the upkeep of its audio, visual, and lighting equipment, highlighting its commitment to quality and excellence.

These investments have temporarily impacted on gross margins, which fell to 47% for the quarter but will yield long-term benefits and ensure the company’s continued competitiveness.

Net profit for the second quarter was $20.016 million, a decline of 73% compared to the
corresponding 2023 quarter. At mid-year of the 2024, net profit of $120.271 million represents a decline $72.107 million or 37%.

Administrative and general expenses for the quarter were $133.414 million, a decrease of $55.734 million or 29% relative to $189.148 million last year, and $298.645 million for six months ended April 2024, down $34.656 million or 10% versus the corresponding period in 2023.

These results were driven by lower activity compared to the corresponding 2023 periods. Despite the overall decline in operating expenses, there were increases in key expense categories, namely security expense and staff costs resulting from increased staffing to support the company’s growth objectives, with a focus on enhancing its capabilities and driving innovation. Depreciation and amortisation charges increased by 61% and 203%, respectively, owing to significant capital investments, and right-of-use adjustments.
The increase in finance costs was driven by an increase in interest expense on right-of-use assets.

Taxation charges decreased by $12.470 million or 47% for the six months ended April 2024.
For the second quarter ended April 30, 2024, earnings per share declined to $0.07 from $0.25 per share in the corresponding period; a decrease of 73%. Earnings per share of $0.40 for the half year, represented a $0.25 per share or 37% decrease over the six months ended April 30, 2023.

The company’s total assets fell by $33.342 million or 3% to $1,219.929 million, compared to $1,253.271 million at April 30, 2023. Receivables decreased by $124.754 million or 29%, partly because of our reclassification of deposits on fixed assets now capitalised.

Loans decreased by $23.869 million or 30%, while Payables decreased by $35.533 million or 15% because of lower operating activities when compared to the six months ended April 30, 2023.

Shareholder’s equity stands at $932.678 million as at April 30, 2024, an increase of $69.303 million or 8% compared to the prior year.

Overall, the company has demonstrated its resilience and ability to navigate challenging times and remains poised for future growth and success.

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Visual Vibe Main Driver Of Revenue And Profitability For iCreate Group

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Tyrone Wilson Chairman President & CEO for iCreate Limited (the Group) has released the following consolidated unaudited results for the quarter, ended March 31, 2024.

Overview

During the first quarter, the Group remained focused on streamlining the operations of all business units to achieve greater operational efficiency and improved governance and internal controls. The Group also made progress in developing its new business line, indoor digital advertising. We have partnered with some key locations and will continue to focus on building this segment.

There was a major focus on addressing the issues that were cited by the Regulatory and Market Oversight Division (RMOD) of the Jamaica Stock Exchange resulting in the Company’s suspension from trading. Based on the feedback received on the information we have submitted to the RMOD, we believe we have complied with the requirements of RMOD and based on their feedback we expect that trading in our stock will resume by the end of the second quarter.

iCreate Limited ‘the Company’ also successfully repaid the Sagicor Investments bond and consequently had the receivership discharged as at January 31, 2024.

Revenue
The Group achieved consolidated revenues of $32.9 million, representing an increase of $6.9 million (26.8%) over the comparative 2023 first quarter. The main driver of revenue for the period is our Digital Out-Of-Home (DOOH) advertising business segment, which continues to show an average revenue increase of 10% each quarter when compared to the corresponding period in 2023.

Profitability
The Group recorded profit before tax of $0.3 million for the first quarter, which is an improvement over the $11.8 million loss before tax over the same period of 2023.

Our acquisition of Visual Vibe.com Limited ‘Visual Vibe’ is showing immediate results for the Group. Visual Vibe delivered $14.0 million in profit before tax which is an increase of $9.0 million (178.7%) over the corresponding period in 2023.

In addition to revenue growth, profitability was also achieved through reduction in expenses in the first quarter. The Group’s administrative expenses increased by $1.8M (10.4%) over the first quarter in 2023, however, this includes the consolidation of Visual Vibe.com Limited, which was not included in the first quarter of 2023. Expenses trended down across the Group during the first quarter as we continue to streamline our operations.

Balance Sheet
As at March 31, 2024, the Group’s Total Assets were $712.1 million, which is $18.7 million (2.6%) below the $730.8 million at the comparable period in 2023.
Total liabilities were $168.6 million, which is a reduction of $98.9 million, following the closing of the Visual Vibe acquisition in May 2023.

iCreate Institute is undergoing a transformational plan which involves reviewing our academic programs due to the fast-changing nature of technology. This too, is the same for GetPAID.

Outlook
The Group remains focused on growth in revenue and cash flows from all member companies and simultaneously streamlining and strengthening our internal processes and investing in our team to realise our strategic objectives while strengthening the brands.
Our other business divisions/subsidiaries iCreate Institute and GetPaid Group Limited ‘GetPAID’ experienced a slowdown for the period.

iCreate Institute is undergoing a transformational plan which involves reviewing our academic programs due to the fast-changing nature of technology. This too, is the same for GetPAID. However, we have new partnerships on the horizon that will enable us to quickly move towards achieving these objectives.

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OMNI Industries Limited’s Successful Listing On The Jamaica Stock Exchange

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OMNI Industries Limited (OMNI) successfully listed on the Jamaica Stock Exchange (JSE) Junior Market and began trading under the symbol OMNI, on Tuesday, June 11, 2024. OMNI’s listing brings the total number of securities listed on the Junior Market to 47 and the total number of companies listed on the JSE to 104, altogether representing 153 securities. OMNI is the first listing on the Junior Market since the beginning of the year and comes at a time when the JSE is celebrating its 55th Anniversary, moved to T+1 and extended the market’s trading hours by 1 ½ hours, which allows a quicker settlement cycle for investors and more time to transact in the market.

Dr. Marlene Street Forrest, Managing Director of the JSE

Dr. Marlene Street Forrest, Managing Director of the JSE, stated, “This augur well for the economy and for wealth creation and for long-term investment. Despite the challenging times, OMNI’s 500,000,000 Ordinary Shares were oversubscribed. Its Initial Public Offer (IPO) allowed the Company to raise capital of $500m and to add 2,686 investors to its register of shareholders. Including the $500 million raised by OMNI, the total capital raised by the companies listed on the Junior Market now amounts to just over $21 billion. With OMNI’s market capitalization of $2.5B, the overall market capitalization of the Junior Market now stands at $143 billion, and the overall market capitalization of the combined markets to $1.82 Trillion.

On its first day of trading, the availability of OMNI’s shares on the Junior Market was met with high demand and brought enthusiastic applause from the audience, when they were informed during the listing ceremony that trading of OMNI’s shares had to be halted due to the vigorous demand for the stock and an increase in price which triggered the JSE’s Circuit Breaker Rule. The JSE’s Circuit Breaker Rule is activated when a stock’s price rises above 15% or falls below 15% of its price during the trading day. OMNI began trading at a list price of $1.00 and increased to $1.30 at the end of its first trading day, on Tuesday. This represents an increase of 30% increase in the stock price.

The total capital raised by the companies listed on the Junior Market now amounts to just over $21 billion. With OMNI’s market capitalization of $2.5B, the overall market capitalization of the Junior Market now stands at $143 billion, and the overall market capitalization of the combined markets to $1.82 Trillion.

In continuing her remarks Dr. Street Forrest stated that data suggests that most of the companies listed on the Junior Market have grown, have served their investors well and have sparked growth in the economy. “ I have no doubt that with the listing of OMNI, the trend will continue,” said Dr Street Forrest.

“Omni is now well poised to enjoy the many benefits of a listed company. High on the list are the raising of the company’s profile, the improvement in corporate governance standards and the additional capital to build the brand. This is possible via an Exchange that is focused on keen regulatory oversight, encouraging good corporate governance and one that provides the infrastructure for new products and services,” continued Dr. Street Forrest.

Mr. Patrick Kumst, OMNI’s Managing Director, said, “Looking ahead, our strategic vision is clear. We plan to modernize our operations by upgrading our existing equipment and investing in new more efficient machines. This is not only to enhance our production capacity but also to drive operational efficiencies and cost savings. We are also committed to expanding our product offerings and exploring new markets in the Region. Innovation and operational excellence are at the heart of our journey.”

Mr. Von White, OMNI’s Chairman, revealed that he had been working with the Company since 1986, over 38 Years. He offered special thanks to his Board of Directors for having guided OMNI to its successful listing on the Exchange. He offered several assurances to the investors, “OMNI as a publicly listed company believes in being socially responsible. “This is part of our Corporate DNA. We have a strong commitment to leave a positive legacy in the communities we serve and, in the environment, whether adopting more environmentally friendly ways of production, managing waste, or giving back, OMNI will continue its efforts to make a difference in the world beyond just number,” said Mr. White.

Mr. Alex Johnson, Manager of Origination and Structuring at NCB Capital Markets Limited, the Lead Broker & Arranger for OMNI offer, said that their achievement is not just a milestone for OMNI but a significant event for the entire capital markets in Jamaica. “This combined IPO and Offer for Sale for $500m stands as a testament to the strength and resilience of our financial markets and the unwavering confidence investors have in the future of Jamaican enterprises,” said Mr. Johnson.

Source Jamaica Stock Exchange

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VM Investments Dumps 30% Stake In Carilend, Acquires 100% of Republic Funds Barbados

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Rezworth Burchenson Chief Executive Officer VM Investments Limited (VMIL) Has Released The Following Unaudited Consolidated Financial Statements For The First Quarter Ended March 31, 2024

First Quarter Financial Overview: March 2024
For the first quarter of 2024, VMIL’s Total Operating Revenue was $911.93 million in comparison to $439.52 million in the prior year, representing an increase of 107.49%.
Net income also increased from $19.92 million in Q1-2023 to $510.21 million.
Net interest income totalled $31.40 million, a decline when compared to $91.63 million reported in the prior year due to our deliberate capital management policy to contain the growth of our repo portfolio, but also compression of spreads due to the tight monetary policy of higher interest rates.

Lower investor confidence and reduced market participation negatively impacted Fees & Commission, which declined to $181.54 million.

Gains from investment activities were primarily boosted by the sale of our equity interest in Carilend, during the review period. VMIL took the strategic decision to liquidate our holdings and to redeploy capital to other ventures.

For the review quarter, expenses grew by 5.76% to $470.39 million against the backdrop of our prudent cost-containment measures.

Our Share of Associate’s Profit for the quarter was lower at $14.69 million.
Profit Before Tax amounted to $456.23 million which translated to net earnings of $510.21 million for the quarter, the highest quarterly profit in the history of VMIL.

Assets Under Management
Our on-balance sheet assets were higher at $30.19 billion, showing an increase of 4%. This was predominately driven by increases in the value of our resale agreements, loan balance and investment in associates of $1.76 billion and $5.21 billion and $1.72 billion respectively. The increase was however tempered by a reduction in net investments in finance leases along with lower cash balance and PP&E figures.

VM Wealth Management (VMWM), continued to manage clients’ funds on a non-recourse basis under management agreements, which saw total off-balance sheet assets of $33.91 billion versus $33.68 billion as at March 2023.

We are pleased that our Unit Trust portfolios have been performing well this year, with the Global Equity and Classic Income Funds generating YTD market-leading returns of 6.69% and 1.77%, respectively in the quarter.

We prudently maintained a capital to assets ratio in excess of the 8% minimum requirement. At the end of Q1, the capital to total assets ratio was 15.02%.

Gain on sale of VMIL’s 30% stake in Carilend
In the first quarter of the financial year, VMIL made significant strides in executing strategic initiatives geared at promoting sustainable growth. One of these included the sale of VMIL’s 30% stake in Carilend Caribbean Holdings Limited in March 2024. Carilend, which was acquired in 2019, is a fintech company that services the Caribbean region, offering a digital lending platform. The shareholding in Carilend was acquired by the VM Financial Group and this transaction had a positive impact on the gains from investment activities.

VMIL Completed 100% Acquisition of Republic Funds Barbados
VM Investments Limited (VMIL) officially acquired 100% ownership of Republic Bank (Barbados) Limited’s shares in Republic Funds (Barbados) Incorporated (RFI) on January 19th, 2024. Following this acquisition, VM Wealth Management Ltd., VMIL’s major subsidiary, took over the administration of the mutual funds previously managed by RFI and changed the names of the mutual funds as follows:

Former Name                                         New Name
Republic Capital Growth Fund:                VM Wealth Capital Growth Fund
Republic Income Fund:                              VM Wealth Income Fund
Republic Property Fund:                            VM Wealth Property Fund

Operating under the new name VM Wealth Funds Limited, the Barbados branch, led by Country Manager Sean Yearwood, now oversees the rebranded mutual funds and is committed to enhancing financial literacy and investment proficiency among Barbadians and the broader Caribbean populace.

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Tropical Battery To Deleverage Balance Sheet Through APO, Enhance Financial Stability And Reduce Interest Costs.

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Alexander Melville Chief Executive Officer Tropical Battery Company Limited Has Released The Following Interim Report For 2nd Quarter 2024

Overview
Tropical Battery Company Limited experienced a remarkable period of growth in Q2 FY2024, marked by substantial revenue and gross profit increases. This success is primarily attributed to strategic acquisitions, including Rose Batteries in Silicon Valley, California, and Kaya Energy Group, acquired in Q3 FY2023.
The Rose Batteries team’s strength was further enhanced by adding key personnel, including Katey Daniel as the new Customer Success Manager and Noelle Machado as the Procurement Manager, who have made significant positive impacts. Wouter Potman, Rose’s recent Project Management hire, has also made substantial improvements in professionally documenting the status of the development pipeline, reinforcing the effectiveness of the project management strategies.
KAYA Energy successfully navigated public relations challenges and regulatory uncertainties in the renewable energy sector to close several vital deals north of $250 million for the quarter.

Financial Review
The statement of financial position as of March 31, 2024, illustrates a dynamic period of growth fuelled by strategic acquisitions and significant capital investments. The acquisition of substantial new assets and the expansion into new facilities have poised the company for continued success in its market sector. Moreover, the planned deleveraging through an Additional Public Offering indicates a proactive approach to managing increased debt levels, aiming to optimise the financial structure and enhance shareholder value. The overall economic health of Tropical Battery is robust, with strong liquidity and asset bases that provide a solid foundation for future growth and profitability.

Revenue and Gross Profit
During Q2 FY2024, Tropical Battery’s gross operating revenue increased, climbing from $700 million in Q2 FY2023 to $1.5 billion in the current fiscal year, representing a surge of approximately 121%. This significant rise is directly linked to the company’s recent acquisitions, which expanded its market presence and operational scale. The gross profit also reflected this positive trend, increasing from $223 million to $489 million, translating to a growth of 119%. These figures underscore the successful integration of the new acquisitions and suggest an effective management strategy for leveraging new assets to enhance overall profitability.

Expenses and Operating Profit
During the fiscal period, we witnessed notable increases in specific expense categories. Non-recurring acquisition-related costs amounted to $77 million, reflecting the one-time cost of the recent acquisitions. Additionally, administration, marketing, and selling expenses rose from $161 million to $305 million, an increase of 90%. This escalation is due to the expanded operations and the need to support a larger organisational structure post-acquisition.
Despite these increased outlays, operating profit improved significantly by 71%, from $62 million in Q2 FY2023 to $107 million in Q2 FY2024, indicating effective cost management relative to the increased revenue. Furthermore, if we add back the one-time nonrecurring acquisition-related cost of $77 million, the increase in operating profit would be significantly higher.

Finance Costs and Net Profit
Finance costs presented a challenge, escalating by 526% from $16 million to $102 million. This rise was partially offset by increased finance income, which increased from $11 million to $38 million. Net finance costs after adjustments stood at $64 million. These costs notably impacted profit before taxation, which decreased from $50 million to $27 million.

Strategic Financial Planning
Tropical Battery plans to deleverage its balance sheet through an Additional Public Offering (APO) to enhance financial stability and reduce interest costs. This offering is set to raise significant capital and pay down existing debt substantially, which is expected to lower interest costs moving forward and contribute positively to the company’s financial health.

Company Outlook
Tropical Battery Company Limited’s strategic financial decisions have dramatically transformed its landscape over the last six months. The investment in acquisitions and capital expenditures, supported by substantial financing activities, has set the stage for expanded operations and potential revenue growth.
To achieve greater cohesion across the markets we serve — Jamaica, the Dominican Republic, and the United States — we plan to capitalise on the synergies among Tropical Battery, Kaya Energy, and Rose Batteries. This strategy is designed to expand growth opportunities and realise cost efficiencies throughout the group. By synchronising our operations, strengthening our market presence, and leveraging our brand advantages, we aim to develop a unified group strategy that enhances efficiency and increases profitability.

Our approach includes thoroughly reviewing and integrating systems and processes to ensure smooth coordination among the three companies. This alignment is expected to enhance our return on capital employed, drawing on the combined strengths of these distinguished brands to foster growth, drive innovation, and deliver exceptional customer service.

The planned APO represents a proactive strategy to optimise the financial structure and support sustainable development. The strategic benefits of these acquisitions and financial strategies are expected to materialise over the coming periods, potentially leading to enhanced economic performance.

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