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PanJam Investments Reporting Second Quarter Losses Of JA$61M, Driven By Losses Generated By Associated Company Investments

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Highlights
• Net profit attributable to shareholders of $489 million for the quarter (2019: $3,055 million); and $494 million for the six months (2019: $3,947 million)
• Earnings per stock unit for the quarter of $0.46 (2019: $2.92); and $0.47 for the six months (2019: $3.76)
• Book value per stock unit of $40.32 at 30 June 2020 (31 December 2019: $40.36)
• Ordinary dividend paid during the quarter of $0.275 (2019: $0.265)

Stephen B. Facey, Chairman & Chief Executive Officer of PanJam Investment Limited, is reporting that while global financial markets experienced significant volatility in the June quarter, the group’s securities portfolio broadly retained its value during the second quarter. The Group however saw its financial performance resulting in a loss of JA$61 million, while the COVID-19 pandemic continues to have a significant impact on Jamaica.

The closure of the country’s borders during the second quarter of 2020, along with other government-imposed measures, resulted in reduced economic activity, particularly in tourism and travel-related businesses. The effect of this was seen in the losses generated by associated company investments, which include hotel operations and adventure tours he reported.

Commenting further in his report included in the unaudited consolidated financial statements for the six months ended 30 June 2020, he noted that the Groups real estate assets, again, demonstrated resilience, with their property segment performing admirably over the three-month period.

Associated companies, which operate in a number of industries, have seen varying levels of impact. Positive highlights of their performance include the strong results produced by New Castle Company (the owners of the Walkerswood brand) and Sagicor Group Jamaica (“Sagicor”)’s core insurance and employee benefits business lines.

The results of associated companies consist principally of their 30.2% investment in Sagicor, noting that they also hold minority positions in a number of diverse private entities.

PanJam’s share of results of associated companies for the first six months of 2020 decreased by $1billion, or 47 percent, driven principally by Sagicor’s results, but also negatively influenced by results from the Courtyard by Marriott Kingston and Chukka Caribbean Adventures, both of which saw little business activity during the second quarter due to the COVID-19 pandemic.

Facey also noted in his report to shareholders that PanJam has spent decades creating a robust balance sheet, specifically for times such as these. As at the end of June, the group held cash and cash equivalents of $2.2 billion and maintained a conservative leverage ratio which, when combined, would enable them to raise financing in order to capitalize on attractively-priced investment opportunities that may arise.

Looking at the Groups Balance Sheet, he reported that total assets at June 30, 2020, amounted to $58.1 billion, compared to $54.4 billion at December 31, 2019, and $50.3 billion at June 30, 2019. Stockholders’ equity of $42.7 billion was relatively flat to the 31 December 2019 balance of $42.7 billion. This equates to a book value per stock unit of $40.32 (December 31, 2019: $40.36).

Notwithstanding the strength of their balance sheet, management has taken a number of steps to preserve cash, including rigid cost containment exercises and the suspension of quarterly dividends for both May and August 2020, as they navigate the uncertain timeline associated with this pandemic.

Six-month operating expenses of $824 million (2019: $847 million) decreased as a result of cost-saving measures. Finance costs for the same period of $378 million (2019: $378 million) were flat when compared to 2019 as a result of lower average interest rates on a larger debt portfolio.

In terms of the Groups Income Statement, he reported that net profit attributable to owners of $489 million for the three months ended 30 June 2020 was significantly below the $3,055 million recorded in the same period in 2019.

Last year’s results were heavily influenced by unrealized gains from a portfolio of Jamaican equities, which were largely erased in the first quarter of 2020. The decline in the second quarter’s profit compared to last year was also driven by a decline in the share of results of associated companies, as well as a non-recurring gain on the disposal of shares in associated companies of $941 million in 2019.

Earnings per stock unit for the quarter were $0.46 (2019: $2.92).

PanJam’s securities trading portfolio suffered a minor loss for the quarter, in line with movements in stock and bond prices both locally and globally. Portfolio composition, including exposure to Jamaican equities, reflects confidence in the nation’s eventual economic recovery and their well-defined approach to investment risk management he reported.

Net profit attributable to owners for the six months ended 30 June 2020 amounted to $494 million (2019: $3,947 million), equivalent to earnings per stock unit of $0.47 (2019: $3.76).

The performance was heavily influenced by investment losses of $1,145 million (2019: $1,278 million of income), a decrease of $1,001 million in share of results of associated companies, and the second quarter non-recurring gain on the disposal of shares in associated companies of $941 million in 2019, which more than offset increases of $162 million in property income and $294 million in other income.

Investment losses were driven by unrealized losses in their portfolio of local and overseas securities, despite higher interest, dividend income, and foreign exchange gains. Property income increased due to high occupancy, contractual rate increases, and devaluation effects on leases denominated in US dollars. Other income was boosted by gains from the sale of the Bamboo Avenue property in Kingston.

With stable occupancy levels, year-to-date property income grew 17 percent when compared to the same period in 2019. This as their relationships with tenants have grown stronger and, on that basis, believes that their properties will continue to hold significant value.

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Monarch Pharmacy To Fortify And Strengthen Fontana As The Number 1 Retailer In Jamaica.

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Anne Chang Chief Executive Officer and Director of Fontana Limited has released the following unaudited financial statements for the second quarter ended December 31, 2024, which were prepared in accordance with IFRS Accounting Standards.

Income Statement

The company’s quarterly revenue hit a record $2.7 billion, representing an increase of 15.3% over the $2.4 billion for the corresponding quarter last year.

Revenues increased across all locations, with the Portmore store improving substantially over its prior year.

There were increases in all key metrics – sales by category, scripts, average scripts and number of transactions.

Cost of sales increased by 17.9%, resulting in a gross profit of $1.06 billion, an increase of 11.5% over Q2 last year.

Gross margins for Q2 declined slightly from 40.5% to 39.2% but year-to-date margins remain strong, exceeding year-end margins by over 2%.

Operating expenses increased by 16.2%, ending the quarter at $687.9 million compared to $592.2 million last year.

However, due to the Portmore store contributing only six (6) weeks of expenses in the prior year, the comparison is still not an apples-to-apples comparison. The increased expenses were mainly driven by staffing costs, industrial security guard expenses, retirement provisions for senior staff (2025), and reclassification of our pharmacist salaries to remain competitive with the GOJ.

Despite this, our cost-control efforts in general insurance and utilities have yielded positive results, and we continue to monitor and implement efficiency measures.

Operating profit rose 3.9%, closing at $375.3 million versus $361.3 million last year.

Finance costs declined 21.9%, moving from $54.9 million in Q2 last year to $42.8 million this quarter, mainly attributable to foreign exchange gains on the lease liability (IFRS16).

Other income increased by 25.6% ending the quarter at $43.5 million compared to $34.7 million for the corresponding period last year.

EBITDA grew 11.4% to $448.4 million up from $402.5 million last year, a provision for corporate income taxes of $49.4 million was made for this quarter taking the year-to-date tax provision to $61.3 million. There was no comparable provision in Q2 last year as Fontana only completed the 5 full years on the Junior market and qualified for a 50% reduction in the full tax rate effective January 2024. This resulted in a net profit for the quarter of $326.6 million or 4.3% less than that reported for the corresponding quarter last year. Earnings per share moved from $0.27 last year to $0.26 for Q2 this year.

Balance Sheet Total assets at the end of the quarter stood at $5.7 billion, slightly below the $5.8 billion recorded in the same period last year.

Cash and cash equivalents remain strong at $1.6 billion, down 4.4% from the previous year, reflecting the July 2024 dividend payment of $312.3 million.

Shareholders’ equity grew 9.9% to $3.0 billion, up from $2.7 billion in the prior corresponding quarter.

Outlook

The end of the quarter saw the start of exciting new projects such as the implementation of our new integrated POS system for our pharmacy department along with the kick off of a phased roll out of our new HR software. The team is working assiduously on the due diligence process for our recently announced acquisition of the Monarch chain of pharmacies. We are excited to have Monarch join the Fontana family, expanding our footprint in Jamaica and providing more convenient locations for our growing customer base. With strong cash flows and a healthy balance sheet, we remain well-positioned to capitalize on future growth opportunities that will strengthen the company and our position as the number 1 retailer in Jamaica.

 

For More Information Fontana Limited (FTNA) – Unaudited Financial Statements For Second Quarter Ended December 31, 2024  CLICK HERE

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Spur Tree Spices Jamaica Records 47% Year-Over-Year Profit Growth

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Profit before tax in the fourth quarter increased to $30M, up from $16.9M for the same period in 2023 despite an extremely challenging year.

The company’s performance demonstrated remarkable resilience and strength in the face of severe adversities. Even more impressively, profit attributable to owners for the period, climbed from $11.5M to $33.1M, a remarkable 187.1% increase. This 47% year-over-year profit growth was achieved despite prolonged environmental challenges that disrupted the agro-processing sector.

The devastation caused by Hurricane Beryl significantly impacted key agricultural crops and infrastructure, with lasting effects still felt across the industry.

Recovery was further hampered by persistent and excessive rainfall throughout the second half of the year, leading to shortages in critical raw materials and increased input costs. One of the hardest-hit crops was ackee, a core product in our portfolio. Repeated weather-related setbacks resulted in reduced yields, strained supply chains, and higher costs, creating additional pressure on operations.

Beyond weather-related challenges, the company also faced escalating costs across the board—including raw materials, packaging, transportation, and energy. These industry-wide cost pressures tested our ability to sustain growth and profitability. However, through strategic planning, proactive decision-making, and supply chain adjustments, we navigated these disruptions effectively.

We identified innovative solutions to manage costs, optimize production, and drive revenue growth, ensuring that we continued to deliver high-quality products to our customers. The exceptional profit growth achieved in the period, not only highlight the strength of our business but also reinforces our commitment to delivering value to our shareholders, even in the harsh and difficult circumstances.

For More Information Spur Tree Spices Jamaica Limited (Spur Tree Spices) Unaudited Consolidated Financial Statements for the Fourth Quarter Ended December 31, 2024. CLICK HERE

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Knutsford Express Courier Service Remains A Strong Contributor

Our courier service remains a strong contributor, providing dependable package delivery seven days a week. We are actively focused on expanding into convenient courier locations and improving service processes to better serve our customers.

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The second quarter reflected stable demand for our core services. Revenue for the period increased by 5.7% to $500 million, compared to $473 million in the corresponding quarter last year. This growth was driven by increased passenger volumes across all routes. For the six-month period, revenue rose 8.8% to $1,050 million, up from $965 million in the comparative period. Continued investments in our coach fleet have enabled us to meet growing customer demand and position the company for sustained growth.

Our courier service remains a strong contributor, providing dependable package delivery seven days a week. We are actively focused on expanding into convenient courier locations and improving service processes to better serve our customers.

Our total assets grew 12.5% to $2,062 million as of November 30, 2024, up from $1,833 million a year earlier, reflecting ongoing investments in expanding our coach fleet and other operational resources.

Looking ahead, we anticipate a rebound in travel demand as headwinds from the recent U.S. election cycle and associated travel advisories subside.

Our strategic investments in capacity expansion, customer convenience, and operational efficiency are expected to drive sustainable growth and enhance customer experience in the second half of the financial year.

Oliver Townsend Chief Executive Officer Knutsford Express Limited

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Jamaican Teas Group Reporting 12% Jump In Net Profit For Q1 December 2024

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The Jamaican Teas Group enjoyed rising sales during the first quarter of the 2024/25 fiscal year and this trend is expected to carry over into the balance of the year.

Manufacturing Division | The highlight for the quarter was the gain in our export sales which rose 38 percent over the prior year. The 6 percent decrease in our local manufacturing sales primarily reflects the high level of sales that took place to Wisynco in the year ago quarter as they built their inventories at the commencement of their new distribution agreement with us which began on Nov 1 2023.

Real Estate Division | Two studio sales were booked this quarter this year versus four in the year ago quarter following the launch of sales at our Belvedere Road project in October 2023. Booked and / or completed sales at the complex have reached the half way stage with 15 studios sold or under contract at time of writing. Retail Division | For this quarter, retail revenues amounted to $219 million, an increase of 10 per cent. This reflects a continuation of the accelerated revenue growth we have seen in our store in recent months.

Investment Division | During this quarter, the prices of stocks on the Jamaica Stock Exchange Main Market increased although prices on the junior market declined. USA Stock Exchanges improved in the quarter. The unrealised gains in our overseas investments were however much lower than a year ago due to declines in the values of our holdings in several home building and construction companies as well as a significant decline in the value of the shares of one of the computer companies we hold. Some of these declines have reversed themselves in January 2025.QWI Investments Limited (QWI) reporting a small net loss of $10 million for the quarter, a significant reversal from their year ago profit of $18 million. While the market outlook is unclear, QWI may not experience profit growth if the profit results of our main investee companies do not continue their improvements over a year ago.

Revenues | JTL’s total revenues for the quarter increased by 9 per cent overall from $840 million a year ago to $913 million this quarter. The reduction in Investment Income mainly reflects the lower unrealised investment gains of QWI referred to above along with higher realized losses recognized from a higher than usual level of share sales undertaken by QWI this quarter. Higher dividend and interest income compared with the year ago period offset some of these unfavourable developments. QWI halved its share portfolio in Trinidad in the quarter due to the disappointing profit outlook of one of its investees. In addition, the company also exited several other investments due to unexpected adverse changes in the business of several of our holdings.

Expenses| The increases in Cost of Sales for the quarter were outpaced by the growth in revenues. As a result our gross profit margin rose from 18.5 per cent a year ago to 20.3 percent this quarter. This improvement arose in part from the consolidation of our two former factory premises into our current factory at Temple Hall which was completed on 31 August 2024. This helped to eliminate expenses duplicated over two premises versus one now. The lower level of low margin real estate sales this quarter also assisted in the margin improvement.

Other expenses were little changed in the quarter except for interest expense which was $4m lower due to lower debt levels and lower interest rates.

Net Profit | Net profit attributable to Jamaican Teas for the quarter was $53 million, a 12 percent improvement from the $47 million profit in the same quarter of the previous year. Total attributable comprehensive income per share was 2.4 cents.

Financial Position| The increase in fixed assets since September 2024 is due mainly to improvements made to the Temple Hall premises. Receivables rose by 15 per, similar to the trend in revenues in the quarter. QWI’s investment portfolio was reduced in size during the quarter due to the share sales referred to earlier. The reductions in inventories reflect real estate sales since Sept 2024 as well as the continuation of right sizing practices in the manufacturing plant purchasing department.

Outlook| The Jamaican economy is heavily dependent on tourism for foreign exchange and employment and its impacts on the wider economy with its linkages to locally produced goods and services. To this end, the continued rebound in visitor arrivals in recent months is encouraging. The recent decreases in interest rates locally will also improve the prospects for our Group.

John Mahfood – Chief Executive Officer/Director Jamaican Teas Group

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Wisynco Q1 Results Impacted By Reduction In Remittances And Softening Visitor Arrivals

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Revenues for the quarter of $14.2 billion represent an increase of 7.2% above the $13.3 billion achieved in the corresponding quarter of the previous year however this fell slightly below our expectations.

The slowdown observed in the first quarter, driven by a reduction in remittances and softening of visitor arrivals, continued throughout the second quarter and was in fact compounded upon by the cool temperatures and significantly more rain than expected, making Q2 one of the rainiest quarters in some time both of which typically impacts fast moving consumer goods consumption adversely.

Gross Profit of $4.7b was 6% greater than the $4.4b of the prior year’s quarter whilst Gross Margin at 32.9% were 40 basis points below the 33.3% for the same quarter last year. The lower Gross Margin when compared to the prior year is attributed primarily to the lower absorption of fixed costs related to lower production volumes. Selling, Distribution & Administrative expenses (SD&A) for the quarter totaled $3.5 billion or 13.5% more than the $3.1 billion for the corresponding quarter of the prior year.

Our SD&A expense to sales ratio was 24.8% for the quarter, or 140 bps greater, when compared to 23.4% in the prior year. The greater SD&A expenses to sales ratios are essentially the result of our expanded Marketing and Sales departments, these increase costs align with our expectations of rolling out the capital expansion. Profit before Taxation for the quarter was $1.2 billion or 18.6% lower than the $1.5 billion of the comparative quarter for the prior year.

For the quarter, after provision for taxes, Wisynco recorded Net Profits Attributable to Stockholders of $991 million ($1.2 billion for the comparable quarter of the prior year), or 26c per stock unit for the quarter compared to 32c per share for fiscal 2024.

On a year to date basis through half the financial year, the business has earned $2.5b in Net Profit after Taxes, a 10.2% reduction year over year. Due to greater non-cash related expenses vs last year, primarily depreciation stemming from the various plant expansions, our EBITDA of $3.9 YTD is down only 4.2% year on year. From a balance sheet perspective, the business ended the quarter with $8.0 billion of cash and investment securities when compared to $11.5 billion in the previous year, the reduction is primarily due to investing an additional $2 billion in plant and equipment. Our working capital ratio remains strong at 2.39.

As we enter the second half of our financial year, we, like other business, are closely monitoring global challenges, including potential tariff regimes and economic disruptions stemming from recent policy changes. Wisynco remains committed to strategic planning to mitigate risks to our operations. Our recent investments in plant and equipment capacity, along with new production initiatives, will enhance our ability to diversify and navigate these challenges effectively.

Andrew Mahfood Chief Executive Officer Wisynco Group Limited – Unaudited financial results for the second quarter ended December 31, 2024, which have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting.

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