Net profit grew to $501.06 million, reversing the loss of $263.18 million chalked up last year

Jamaican Teas Limited is reporting good financial results for the nine months ended June 30, 2021 in which the company reversed last year’s losses of $263.18 million to post a profit of $501.06 million.

For the June quarter, net profit closed at $210.01 million, up from $193.14 million, a year ago. Net profit attributable to shareholders for the period under review amounted to $313.01 million, up from $84.93 million for the same period in 2020.

Regarding the June quarter, net profit attributable to shareholders amounted to $115.45 million, up from $107.54 million for the comparable period in 2020. Pre-tax profit for the review period amounted to $661.71 million compared to pre-tax loss of $312.77 million booked in the previous year while for the quarter, pre-tax profits closed at $278.85 million, up from $205.08 million in 2020.

There was a taxation charge for the period, which closed at $160.64 million relative to a taxation credit of $49.60 million in 2020. Consequently, earnings per share totaled $0.15 compared to $0.04 for the period ended June 2020.

Revenues climbing as well

Revenues for the nine-month period was up 24 per cent to total $1.75 billion as compared to $1.41 billion posted a year earlier. For the June quarter, revenues amounted to $530.71 million compared to $505.96 million in the previous corresponding quarter.

The management reports that, “our third quarter results reflect a good performance but with some moderation of the strong trends seen in the previous quarters. Since the end of the quarter the group continues to record strong sales on both the export and local market and increased gains in your investment company”.

Cost of sales rose 28 per cent to $1.30 billion in which gross profit rose 14 per cent to close at $451.12 million. Gross profit for the quarter was flat closing at $139.62 million compared to the $139.38 million posted last year.

Investment income closed the period at $441.55 million compared to losses which closed the prior corresponding period at $481.18 million. Investment income for the quarter closed at $208.63 million compared to $132.14 million documented for the same quarter last year.

Expenses rising

Administrative expenses rose by 13 per cent to $187.51 million for the nine months ended June 2021 relative to $166.38 million for the same period of 2020.  Jamaica Teas sales and marketing costs fell by 35 per cent to date, totalling $27.12 million coming from $41.82 million a year ago.

Finance cost for the period under review amounted to $25.92 million while for the quarter finance costs closed at $9.24 million versus $5.15 million in the prior corresponding quarter. The company highlighted some of the challenge faced last year into this year.

However, the management is declaring, “we face the future cautiously with our expectation that we will be able to continue our operations without any major interruptions. We have also faced increased difficulty in receiving raw materials on a timely basis as well as experienced some increases in raw material and shipping costs”.