Net loss attributable to shareholders of US$2.69 million for half-year period

Shareholders in Caribbean Producers Jamaica (CPJ) were made to feel the impact of a less than desirable half yearly financial out-turn with net losses attributable to them of US$2.69 million.

The losses for the six months ended December 31, 2020, reverses the profit of US$524,171 during the same period in 2019, as the company regarded an institutional food service distributor selling consumable products to the hospitality industry posted weak financial results for the period under review.

For the December 2020 quarter, the net loss attributable to shareholders came out at US$837,492 relative to a net profit of US$782,372 booked in 2019. Net loss for the six months amounted to US$2.79 million relative to a profit of US$518,627 in 2019, while for the quarter, the net loss amounted to US$850,371 relative to a net profit US$836,023 booked in 2019.

These losses includes depreciation charges of US$1.51 million, International Financial Reporting System (IFRS) 9 & 16 adjustments of US$616,000 and staff restructuring costs of US$293,000. As a result, loss per share (LPS) for the six months amounted to US$0.24 compared to an earning per share (EPS) of US$0.05 in 2019. 

LPS for the quarter amounted to US$0.08 relative to EPS of US$0.08 in the 12 months prior. The 12 months trailing loss per share amounted to US$0.66. CPJ closed trading on Wednesday (February 10) at J$2.76.

Big drop in revenues

There was a big drop of 59 per cent in revenues moving from US$59.47 million in 2019 to close the period under review at US$24.39 million. For the second quarter, the company also posted a 54 per cent decrease in revenues to close at US$15.05 million relative to US$32.38 million for the same quarter of 2019.  

For the December second quarter, CPJ attained gross operating revenue of US$15.05 million, which is 61 per cent more than the first quarter operating revenue. The overall group operating revenue for the half year was US$24.39 million, which is 5.14 per cent more than the projections made by the group for the COVID-19 impacted fiscal year 2020-2021.

Cost of operating revenue showed a 59 per cent decrease closing the period at US$18.02 million relative to US$44.20 million for the corresponding period in 2019. For the quarter, the company recorded a 54 per cent decrease in cost of operating revenue to close at US$11.10 million relative to US$23.88 million for the comparable period in 2019.

Selling and administrative expenses were US$6.19 million, a 45 per cent decrease on the US$11.33 million posted for the prior year. Depreciation for the period fell marginally by one per cent closing the period at US$2.12 million compared to US$2.13 million in 2019.

Other operating income totaled US$132,623, comparing with operating income of US$100,058 booked in 2019. The company booked a loss before finance costs, income and taxation of US$1.91 million relative to a profit of US$1.87 million in 2019.

Maintaining strong cash balances

Commenting generally about its half yearly financial performance, CPJ emphasised that, “the group, since the beginning of the current fiscal year, has maintained strong cash balances of over US$5 million, even while continuing to invest over US$1.5 million for important operational infrastructure in IT, meat plant equipment, fleet expansion and the construction of a larger retail outlet in St Lucia.”

As at December 31, 2020, CPJ’s total assets amounted to $57.10 million, a 24 per cent decline from the $75.32 million booked in 2019. Non-current assets closed at $20.36 million (2019: $22.28 million) while current assets amounted to $36.75 million (2019: $53.03 million). There was a nine per cent decline in non-current assets, which was mainly attributed to the 17 per cent contraction of ‘Intangible assets’ which ended at US $11.16 million (2019: $13.45 million).

There was a 31 per cent decline in current assets, which was largely due to a 48 per cent reduction in ‘Account receivable’ which amounted to $11.65 million coming from US$22.56 million booked in 2019.

Shareholder’s equity totaled $15.33 million (2019: $22.50 million) resulting in a book value per share of approximately US$1.39(2019: US$2.05).