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Jamaican Tea’s Group Experienced Mixed Fortunes In Third Quarter To June 2022

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John Mahfood – Chief Executive Officer and Director Jamaican Teas Limited has released the following statement on the company’s Third Quarter Results to June 2022

Export Manufacturing sales rose a strong 40 percent in the quarter as the division overcame the shortage of raw materials required to fulfil orders of finished products experienced earlier in the year. Local sales improved by 10 percent in the quarter over 2021.

The Retail Division put in a solid performance with a 28 percent sales increase in the quarter reflecting in part the absence of the COVID restrictions seen in 2021 and the return to our regular operating hours.

QWI ‘s investment share portfolio outperformed its overseas benchmarks but was still adversely affected by the strong retracement of share prices in the USA as well as in many main market stocks in Jamaica.

The third quarter and year to date attributable profits were lower than the prior year periods mainly as a result of the reversals at QWI.

Manufacturing Division – The highlight for the quarter was the strong gain in our export sales which rose 40%. Local sales improved by 10 percent in the quarter to bring total manufacturing sales for the nine months to $1,363 million, an increase of 12 percent over 2021 that delivered sales of $1,215 million.

Retail Division – For the third quarter revenues amounted to $161 million versus $126 million a year ago. The store has returned to its former hours of operation and has continued to see improved sales, customer count and profits following the quarter end.

Real Estate Division – This division booked several studio sales during the year ago quarter. That project is now completely sold. The Division’s latest project at Belvedere in Kingston is proceeding apace with physical completion anticipated later in calendar 2022.Sales activity for Belvedere has already commenced with the displaying of model units that have been well received by potential purchasers.

During the quarter there was a poor performance of stocks on the Jamaican and USA Stock Exchanges with significant share price retracements overseas but a stronger performance mainly in Jamaica’s Junior Market.

Investment Division – During the quarter there was a poor performance of stocks on the Jamaican and USA Stock Exchanges with significant share price retracements overseas but a stronger performance mainly in Jamaica’s Junior Market. This resulted in unrealised investment losses for QWI of $132 million in the quarter versus gains of $162 million in the year ago quarter.

Group Revenues – Total revenues for the quarter increased by 22 percent from $530.7 million to $649 million despite the absence of any real estate sales this quarter versus 2021 which included real estate sales from Manor Park. For the year-to-date sales increased 4 per cent.

The decrease in Investment Income this quarter mainly reflects the impact of unrealized fair value losses in QWI’s investment portfolio in the quarter.

Expenses – While revenues have been increasing, increases in our Cost of Sales for both the quarter and the year to date have outstripped the revenue growth resulting in the loss of two percentage points of gross profit margin. This adverse trend resulted from sharp increases in ocean freight costs as well as increases in raw materials costs not yet fully reflected in prices to our customers.

Price increases were effected in all our markets in January 2022 and again on July 1 2022.

Administrative costs rose and mainly reflects increased insurance and investment management expenses at QWI in the period as well as salary and wage increases at the Manufacturing division.

The increase in interest expense resulted from higher borrowings at QWI and the Manufacturing division, the latter due to the need to fund higher levels of inventory.

Net Profit– Profit before tax moved from $278 million a year ago to a loss of $70 million this quarter mainly resulting from the reversals in QWI’s investment portfolio referred to earlier. For the year to date, profit before tax moved from $661 million to $231 million.

Taxation moved from a charge of $68 million last year to a credit this quarter of $23 million Net profit for the quarter attributable to the members of Jamaican Teas was $24 million compared with $115 million in the previous year quarter. For the year to date, attributable net profit moved from $313 million to $186 million.

Basic attributable comprehensive income per share was 1 cent (2020/21– earnings of 5.0 cents) for the quarter and 9 cents (2020/21 – 15.0 cents) for the year to date.

Significant Balance Sheet Movements – The increases in inventory since Sept 2021 reflect the build-up of raw materials to offset ongoing delays in the delivery of some items imported from overseas.

The increase in Housing under Construction since September 2021 is a result of the build out of Belvedere while the increase in receivables resulted, in part from the growth in revenues reported above.

Much of this investment in inventories was funded by means of short-term borrowings which have increased by $128 million since September 2021.

Outlook – Our manufacturing business faced challenges earlier in the year but freight charges have begun to fall while the raw material shortages experienced have been overcome and sales order fulfilment has improved.

We are optimistic that our investment arm, QWI is well positioned to benefit from the ongoing recovery in tourism in Jamaica, increasing employment and the positive profit results at several listed companies on the stock market. The rising interest rates here and overseas will however prove to be a significant hindrance to the prices of all financial assets and this will temper the immediate prospects for future investment gains.

More information CLICK HERE

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Elite Diagnostic Limited: Navigating Challenges and Seeking Growth

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Harvey Levers Chief Executive Officer for Elite Diagnostic Limited has released its unaudited financial statements for the third quarter ended March 31, 2024. The results suggest that while the company has seen some financial improvements, it continues to face challenges in growing and stabilizing its business.

Businessuiteonline.com delves into the company’s recent performance, the hurdles it faces, and the strategic initiatives management is undertaking to attract investors and secure a more stable future.

Financial Performance Overview

For the third quarter of 2024, Elite Diagnostic reported a revenue of $205.1 million, marking a modest 2% increase over the same period last year. This uptick in revenue by $2.9 million signifies a positive trend, albeit small. More notably, the company’s gross profit saw a significant rise of 10.4%, jumping from $135.5 million to $149.6 million. Operating profit experienced an impressive 44% increase, moving from $17.4 million to $24.9 million compared to the same period in the prior year.

One of the key highlights of the financial statement is the substantial improvement in net profit. The net profit for the quarter stood at $12.6 million, which represents a 110% increase from the $6.0 million reported in the comparative quarter of 2023. This boost was achieved despite a 26% increase in administrative expenses amounting to $20.4 million, which was effectively offset by a 53% reduction in depreciation expenses.

Assets and Liabilities

Elite Diagnostic’s total assets amounted to $1,033.0 million, slightly down from $1,053.1 million in the previous year. This decrease is attributed to the reduction in the book value of some fixed assets. On the liabilities front, the company saw a reduction from $577.1 million to $550.1 million, reflecting the ongoing reduction of long-term debt as per the scheduled repayments.

Strategic Initiatives and Challenges

The improved financial performance of Elite Diagnostic can be largely attributed to strategic measures implemented late last year aimed at reducing machine downtime. Machine downtime has been a critical issue for the company, affecting operational efficiency and customer service delivery. By addressing this issue, Elite Diagnostic has not only enhanced its operational performance but also improved its financial results.

However, the company still faces significant challenges. The 26% increase in administrative expenses indicates that operational costs remain a concern. Additionally, despite the reduction in depreciation expenses, managing the costs associated with maintaining and upgrading diagnostic equipment is a continuous challenge.

Elite Diagnostic has also historically struggled with stabilizing its business and achieving consistent growth. Market competition, economic fluctuations, and the high costs associated with advanced diagnostic technology are ongoing hurdles. The reduction in total assets, due to decreased book value of fixed assets, suggests a need for strategic asset management to avoid future devaluations.

Attracting Investors

To make the company more attractive to investors, management is focusing on several key areas:

Operational Efficiency: Continuing efforts to minimize machine downtime and optimize operational processes are critical. By ensuring high machine availability and reducing operational disruptions, Elite Diagnostic aims to enhance service reliability and customer satisfaction.

Cost Management: While administrative expenses have risen, the significant reduction in depreciation expenses shows a promising direction. Management needs to maintain a balance between necessary administrative costs and overall cost-efficiency to ensure sustainable profitability.

Customer Service: Maintaining a high standard of customer service delivery remains a top priority. Superior customer service can differentiate Elite Diagnostic from competitors and foster customer loyalty, which is essential for long-term growth.

Debt Reduction: The ongoing reduction of long-term debt is a positive sign for potential investors, indicating prudent financial management and a focus on strengthening the company’s balance sheet.

Innovation and Technology: Investing in the latest diagnostic technologies and ensuring their optimal functioning can position Elite Diagnostic as a leader in the field. This requires a strategic approach to capital expenditures and continuous innovation.

Conclusion
Elite Diagnostic Limited has shown commendable improvement in its financial performance for the third quarter of 2024. Despite the ongoing challenges, the company’s strategic initiatives to reduce machine downtime and focus on customer service are yielding positive results. By addressing operational inefficiencies and managing costs effectively, Elite Diagnostic is working towards becoming a more attractive proposition for investors. The road ahead may be challenging, but with continued focus on strategic priorities, the company can aim for sustainable growth and stability in the competitive diagnostic industry.

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Jetcon Corporation Shifting Focus Towards Sale Of New Cars With BAIC Brand, In Line With Banks Financing Preference.

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Andrew Jackson Executive Chairman Jetcon Corporation Limited (JETCON) – has released the following Unaudited Financial Statements for First Quarter ended March 31 2024.

Jetcon Corporation ended the first quarter of 2024 cutting net losses almost in half compared to the same period in 2023, at $0.89m compared with $1.76m last year.

Cost of Sales decreased 37 percent, to $112m from $154m last year.

Earnings per share total 0.15 cents, down from 0.30 cents last year.

On the balance sheet Inventories total $400 million, which includes used and new vehicles, and solar products, while receivables total $97 million and includes deposits on purchases of imports.

Banks continue to give more favourable lending rates towards the purchase of new cars than used cars, and this is reflected in the continuing stagnation of used car sales. We are therefore shifting focus towards the sale of new cars with the BAIC brand, and we have received positive feedback thus far with the models. Resources will be increasingly transferred from used sales to new sales as new sales pick up.

Similarly, solar product sales continue to be positive, and combined with new car sales, we expect this will form the bulk of revenue in the next 12 months, with much higher profit margins than that of used car sales.

Our Audited Financials for the year ended 2023 will be posted within the next two weeks, and the Board and management regret their lengthy delay. We would like to thank shareholders, management, staff and customers for their continued support.

For More Information CLICK HERE

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Seprod Group Reporting Reduced Net Profits For Year and Quarter-to-Date Performance

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Richard Pandohie Chief Executive Officer for Seprod Group Limited has released the following summary Interim Report to Stockholders from their 1st Quarter Unaudited Financial Statements

Seprod Group Limited (Q1 2024)
Year and Quarter-to-Date Performance (January-March 2024) Revenues:

• Total Revenue: $28.59 billion, up by $1.53 billion (6%) from Q1 2023.
• Gross Profit: $9.48 billion, up by $1.14 billion (13%) from Q1 2023.
• Net Profit: $1.20 billion, down by $152 million (11%) from Q1 2023.

Comments on Performance:

Revenue Drivers:

• Margarine Production: Normalized post-plant upgrade; aggressive market share recovery underway.
• Juice and Dairy Beverages: Demand exceeds capacity; new production capacity to be added later this year.
• Export Sales: Increased by 27%.
• Bryden Group Premium Beverages: Revenue negatively impacted by a short carnival season in Trinidad and Tobago.

Net Profit Factors:

• Interest Expense: Increased due to higher interest rates.
• Effective Tax Rate: Higher in Bryden Group due to business mix changes and expired benefits.
• Dairy Farm Costs: Increased significantly due to drought in Jamaica.
• Pharmaceutical Business: Supply chain challenges.
• Cost Increases: Insurance, interest rates, security, transportation, etc., have eroded profit margins.

The company continues to focus on creating sustainable shareholder value through regional platform expansion and investment in talented, motivated personnel.

For More Information CLICK HERE

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Mailpac Group Tags MyCart Express Assimilation For Enhanced Revenue And Operational Efficiencies To Turn Things Around

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Khary Robinson Executive Chairman Mailpac Group Limited has released the following Directors’ Report To Shareholders for the quarter ended March 31, 2024.

Introduction

Mailpac Group Limited (“Mailpac” or the “Company”) presents its unaudited financial statements for the quarter ended March 31, 2024.

Throughout the quarter, Mailpac focused on closing on the acquisition of MyCart, a significant step in entrenching the business as the leader in e-commerce fulfillment in Jamaica. Not only will the transaction significantly expand market share and improve service delivery, but the brands in the group are now better positioned to meet the goals and needs of their respective target markets. Additionally, despite increased competition and external factors impacting efficiencies, our financial performance for the reviewed period was commendable.

Financial Performance:

In Q1 2024, Mailpac’s revenue came in at $368.5 million, down by 7.8% from the previous year mainly because of the reduction in Mailpac Local and commissions from the marketplace platform at Aeropost.

Despite the reduction, Gross profit for Q1 was $197.9 million, up by 3.6% compared to the previous year.

Operating expenses in Q1 totaled $130.8 million, a 13.6% increase year-over-year, mainly due to strategic investments in business growth and data protection remediation efforts.

Net profit for Q1 decreased by 16.7% to $50.1 million.

We anticipate profitability improvements in 2024 through customer base expansion and overhead cost reductions due to strategic enhancements and shared key operations between Mailpac and MyCart Express.

Financial Position:

At the end of Q1 2024, Mailpac’s Total Assets were valued at $626.3 million, with a cash position of $156.2 million.

Shareholder’s Equity stood at $537.9 million.

Outlook:

With the completion of the acquisition of MyCart Express at the end of March 2024, we are optimistic about the expected synergistic benefits, enhanced revenue streams, operational efficiencies and increased shareholder value from Q2 onwards.

We are confident that the decision to bring both brands under the same umbrella will position Mailpac for continued growth, industry leadership and success in e-commerce.

For More Information CLICK HERE

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Agostini’s Directors Approve Interim Dividend of 40c per share

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Christian E. Mouttet Chairman For Agostini’s Limited has released the following Unaudited Half-year Summary Consolidated Results for Agostini’s to March 31, 2024

The Agostini’s Group maintained a consistent financial performance during the First Half of the 2024 Financial Year.

Revenue increased 7%, reaching $2.57 billion, and operating profit improved marginally to $269 million.

Profit attributable to shareholders, excluding the one-off, non-cash Net Gain on Acquisition, decreased by 6% from $l30 million to $122 million, largely as a result of some non-recurring gains recorded in the previous year, including the profit from the divestment of the Agostini’s contracting division.

Earnings per Share for the first six months were $1.76 versus $1.88 in the prior year without the net gain ($3.93 inclusive of the gain).

Our Consumer Products and Energy & Industrial segments continued to perform well during the period, however, Pharmaceutical & Health Care lagged in profitability in the Second Quarter. This was partially due to supply chain disruptions as well as softer conditions in some regional markets, both of which we are working to improve in the Second Half.

At the end of April, the Group formed a strategic alliance with Linda’s Bakery acquiring 14 of their retail outlets, through our SuperPharm retail subsidiary. This acquisition facilitates our efforts to expand our Presto brand of freshness and convenience across Trinidad & Tobago.

We are in the process of structuring our Pharmaceutical & Health Care and Consumer Products segments to take advantage of our regional position, which has stemmed from our acquisitions in recent years, and this should be completed by the end of the financial year.

We expect to reap the benefits of this now and in the future and remain confident in our strategy for long-term sustainable growth

Based on our Half-year results, the Directors have approved an interim dividend of 40c per share, similar to the prior year. The dividend will be paid on June 28, 2024, to members on the register on June 3, 2024. Our share register will be closed on June 4 and 5, 2024.

For more information CLICK HERE (more…)

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