Administrative expenses increased by 41% to $346.86 million

Durrant Pate/Contributor

Jamaican Teas has dropped profit for 2022 while its administrative expenses have jumped by 41 per cent.

For the year ended September 2022, net profit amounted to J$162.58 million relative to J$586.18 million posted 12 months earlier. Tax charge for the year amounted to J$34.06 million in contrast to the J$154.86 million incurred in 2021.

As such, net profit attributable to shareholders declined to J$193.95 million, down 51 per cent relative to the J$392.94 million made during the comparable period in 2021. Jamaican Teas closed its fourth quarter with a loss of J$30.59 million compared to a net profit of J$235.18 million for the corresponding period in 2021.

The company experienced a nine percent increase in revenues to J$2.47 billion, up from J$2.27 billion. For the September quarter, revenues went up to J$649.76 million from the J$520.36 million posted for the comparative period in 2021.

Cost of sales slightly up

Cost of sales increased by 12 per cent to J$1.93 billion, slightly up from the 2021 posting of J$1.72 billion. Other income amounted to J$71.94 million versus J$163.48 million in the prior year.

Administrative expenses increased by 41 per cent to $346.86 million, relative to J$245.41 million for 2021. Sales and marketing costs rose by three per cent to J$38 million, up from J$36.82 million.

Finance cost for the year amounted to J$50.26 million relative to J$37.71 million reported in 2021, while finance costs for the quarter closed at J$16.56 million, up from J$11.79 million in 2021.

As of September 30, 2022, Jamaican Teas’ total assets amounted to J$4.94 billion, a 21 per cent increase when compared to the J$4.08 billion reported as at September 2021. This increase was attributable to a 79 per cent growth in ‘Inventories’ from J$666.03 million in 2021 to J$1.91 billion for the period under review.

Shareholders’ Equity totalled J$2.66 billion as at September 30, 2022 (2021: J$2.08 billion), resulting in a book value per share of J$1.23 (2021: J$0.96).