November 14, 2024

Spur Tree Spices Jamaica Limited(SPURTREE)

Unaudited financials for the nine months ended September 30, 2024:

Spur Tree Spices Jamaica Limited (SPURTREE) for the nine months ended September 30, 2024, reported a 7% increase in Revenue totaling $1.15 billion compared to $ in the corresponding period last year. Revenue for the third quarter had a 4% increase to close at $420.50 million compared to $404.10 million for the comparable quarter of 2023.

Year to date cost of sales  amounted to $838.38 million (2023: 765.56 million), this represents an increase of 10% year over year. Consequently, gross profit improved 2% to $306.69 million compared to $300.43 million for the nine months ended September 30, 2023. The company booked a gross profit of $131.41 million for the third quarter versus $106.81 million reported for the similar quarter of 2023.

Other operating income increased by 12% to close at $6.43 million (2023: $5.73 million), while Administrative and other expenses increased by 5% from $207.75 million in 2023 to $218.67 million in the period under review. As a result, operating profit for the nine months ended September 30, 2024, amounted to $94.45 million, a 4% decrease relative to $98.42 million reported in 2023.

Finance Cost for the nine months ending September 30, 2024, amounted to $27.85 million, an 11% decrease relative to $31.27 million reported in 2023. Finance Cost for the third quarter amounted to 8.92 million (2023: $10.35 million). Profit before Tax totalled $66.61 million (2023: $67.15 million) a 1% decline from the corresponding period last year.

Net Profit for the nine months ending September 30, 2024, reflected a slight decrease of 1% to reach $66.61 million (2023: $67.62 million). The total comprehensive income attributable to owners of the company for the nine months amounted to $80.34 million, a 17% increase from the $68.89 million reported in 2023.

Consequently, Earnings Per Share for the nine months amounted to $0.04 (2023: EPS: $0.04), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.02). The twelve-month trailing EPS was $0.05, and the number of shares used in these calculations was 1,676,959,244.

Notably, SPURTREE’s stock price closed the trading period on November 13, 2024, for $1.86 with a corresponding P/E ratio of 40.29x.

Balance Sheet Highlights

The Company’s assets totaled $1.65 billion (2023: $1.56 billion). The growth in assets is primarily driven by a 34% year-over-year increase in “Receivables,” which reached $417.64 million (up from $312.00 million in 2023), a 64% year-over-year rise in “Cash and bank balances,” which totaled $97.05 million (compared to $59.62 million in 2023), and a 198% year-over-year increase in “Deferred tax assets,” which amounted to $13.35 million (up from $4.47 million in 2023).

 Shareholder’s equity was $844.06 million (2023: $777.44 million), representing a book value per share of $0.50 (2023: $0.46).

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