November 11, 2024

Jamaica Teas Limited (JAMT)

Audited financials for the Twelve months ended September 30, 2024:

Jamaica Teas Limited (JAMT) for the Twelve months ended September 30, 2024, reported a 18% increase in Operating Revenues totaling $3.19 billion compared to $2.70 billion in the corresponding period last year. Operating Revenues for the fourth quarter had a 20% increase to close at $782.01 million compared to $652.84 million for the comparable quarter of 2023.

Cost of sales amounted to $2.59 billion (2023: $2.12 billion), this represents an increase of 22% year over year. Consequently, gross profit increased by 5% to $604.07 million compared to $576.04 million for the Twelve months ended September 30, 2023. The company booked gross profit of $114.67 million for the fourth quarter versus $108.36 million reported for the similar quarter of 2023.

Other Income decreased by 74% to close at $19.30 million (2023: $75.66 million), while Sales & Marketing Cost decreased by 9% from $51.26 million in 2023 to $46.48 million in the period under review. As a result, administrative expenses for the twelve months ended September 30, 2024, amounted to $427.37 million, a 17% increase relative to $363.82 million reported in 2023.

Finance costs for the Twelve months ended September 30, 2024, amounted to $74.14 million, a 14% increase relative to $64.76 million reported in 2023. Finance costs for the fourth quarter amounted to $18.88 million (2023: $19.41 million). Profit Before Taxation totalled $309.91 million a 45% increase from the corresponding period last year. (2023: $213.13 million).

Taxation for the Twelve months ended September 30, 2024, amounted to $86.30 million, a 221% increase relative to $26.90 million reported in 2023. Taxation for the fourth quarter amounted to $210,092 (2023: tax credit of $6.65 million).

Net Profit for the Twelve months ended September 30, 2024, had a 20% increase to reach $223.61 million (2023: $186.24 million). Profit to shareholders for the Twelve months amounted to $136.03 million, a 40% decrease from the $227.55 million reported in 2023. For the fourth quarter, Profit to shareholders was $39.59 million (2023: $45.62 million).

Consequently, Earnings Per Share for the Twelve months amounted to $0.06 (2023: EPS: $0.11), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.02). The number of shares used in these calculations was 2,174,880,377.

Notably, JAMT’s stock price closed the trading period on November 12, 2024, at a price of $2.19 with a corresponding P/E ratio of 35.01x.

Balance Sheet Highlights

The company’s assets totalled $5.53 billion (2023: $5.22 billion). This increase in total assets was attributable to ‘Investments’ amounting to $2.22 billion (2023: $2.01 billion). ‘Cash and Cash Equivalents’ also increased to $358.00 million (2023: $63.08 million).

Shareholder’s equity was $3.16 billion (2023: $2.97 billion), representing a book value per share of $1.45 (2023: $1.37).

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