November 16, 2021

Stanley Motta Limited (SML) for the nine months ended September 30, 2021, booked a 6% increase in revenue to total $365.40 million compared to $344 million for the same period in 2020. For the third quarter revenue increased 3% to $121.37 million in 2021 compared to $117.82 million the previous year. SML noted, “these increases are mainly attributed to the devaluation of the Jamaica dollar (J$) which moved from an average of J$143.95 to J$149.34:US$1 over the period, September 2020 to September 2021.”

Administrative expenses amounted to $142.50 million (2020: $163.17 million), while other operating income totalled $6.32 million (2020: $5.27 million). It was noted that the decrease in expenses was due to lower foreign exchange loss (FX loss) of J$7.9M for the YTD period compared to a loss of J$48.7M for the same period of the prior year.

This translated into operating profit increasing to $229.23 million when compared to last period’s $186.09 million. For the quarter, operating profit went up by 39% to close the period at $94.60 million (2020: $67.95 million).

Finance costs of $32.89 million (2020: 32.66 million) was recorded for the period. For the quarter, finance cost amounted to $10.93 million (2020: $11.07 million).

As such, profit before tax fell to $196.34 million for the period ended September 30, 2021 relative to $153.43 million in 2020. As for the quarter, profit before tax closed the period at $83.67 million versus $56.88 million in the prior corresponding quarter.

Net profit for the period totalled $193.49 million (2020: $148.18 million) after incurring taxes of $2.85 million (2020: $5.24 million). While for the quarter, net profit of $82.85 million was recorded (2020: $55.15 million).

Total comprehensive income of $259.66 million (2020: $224.06 million) while for the quarter, SML reported total comprehensive income of $100.93 million in 2021 relative to $80.79 million in 2020.

Earnings per share (EPS) for the period totalled $0.26 (2020: $0.20). EPS for the third quarter amounted to $0.11 (2020: $0.07). The twelve months trailing EPS amounted to $1.18. The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on November 15, 2021, at $5.50, with a corresponding P/E of 4.66 times.

Balance Sheet at a glance:

As at September 30, 2021, total assets amounted to $5.84 billion, up from the balance of $5.08 billion in 2020. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to $5.58 billion in 2021 from $4.89 billion in 2020. ‘Right of use Assets’ also contributed to the growth by closing at $104.62 million (2020: nil).

Shareholders’ Equity of $4.86 billion was reported (2020: $4.18 billion) which resulted in a book value per share of $6.42 (2020: $5.52).

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