However, year-over-year profits is up 511% to US$27 million
The slowdown in the local equities market has adversely impacted Mayberry Jamaican Equities (MJE) third quarter performance, as a result of the decline in the performance of several stocks in its portfolio.
For the quarter ended September 2022, MJE recorded a decline in net profits of US$6.2 million when compared to the prior year three-month period. This performance mainly resulted from net unrealised losses on investments in associates of US$13.9 million and net unrealised losses on local equites of US$666-thousand.
However, this was offset by dividend income growth of approximately US$335,000. Total operating expenses for the September quarter went down by US$576,000 when compared to the corresponding period in the prior year.
This resulted in a loss per share (LPS) of US$0.011 compared to US$0.0006 for 2021.
Slowed market activity during the summer
The local equities market decline resulted from slowed market activity during the summer months and amidst the ongoing challenges of uncertainty in global markets, geopolitical events, rising consumer prices globally and increasing interest rates. In spite of the decline during the third quarter, year-over-year MJE financial performance was awesome.
For the nine months ended September 30, 2022, MJE made profits of US$27 million, an increase of US$22.6 million or 511 per cent over the corresponding period in 2021. Total comprehensive income for the period amounted to US$27.3 million, representing an increase of 181 per cent or US$17.6 million.
However, for the September quarter, the equities company recorded a total comprehensive loss of US$17.1 million compared to a loss of US$6.5 million for the similar period in 2021. The decline was primarily attributable to unfavourable price movements on securities in the portfolio for the September 2022 quarter.
Net revenues generated for the nine months to September 30, 2022, increased by 447 per cent or US$23.5 million to US$28.7 million attributed primarily to growth in investments in associates. For the September quarter, the net loss amounted to US$14 million compared to US$7.2 million for the similar quarter in 2021.
This performance was primarily attributable to unrealised losses on investments in associates of US$13.9 million. The results were offset by dividend income of US$971,000 representing growth of 53 per cent compared to US$636,000 for the July to September 2021 quarter.
The largest contributors to the portfolio’s dividend revenues for the quarter were Supreme Ventures Limited, Caribbean Cement Company, LASCO Distributors Limited and Lumber Depot Limited with dividends of approximately US$737,000. For the nine months ended September 30, 2022, dividend income grew by 48 per cent to US$2.9 million from US$1.9 million when compared to the 2021 comparative period.
The net book value per share increased by 33 per cent to US$0.10 (J$15.70) as at September 30, 2022, compared to US$0.08 (J$11.34) for the corresponding period in 2021. The increase noted resulted primarily from the US$38.2 million or 53 per cent increase in investments in associates to US$110.9 million.