Durrant Pate/Contributor

Logistics service provider Mailpack Group is now performing significantly better in 2022, particularly in the June quarter.

The performance has been such Mailpack has already closed much of the gap from June 2021, which was a period bolstered by the lack of movement during the pandemic. However, the company and industry continue to be affected by supply chain challenges and record levels of inflation.

In spite of the challenges, the Khary Robinson-led group is already seeing the benefits of its cost-cutting initiatives and customer entrenchment strategy. These measures have resulted in Mailpack continuing to lead the Jamaican e-commerce market in providing unmatched services to e-commerce consumers.

Financial performance

Revenues for the quarter amounted to J$408.3 million, which is 4.2 per cent lower than the J$426.0 million achieved in the comparable quarter of 2021. Although ‘cost of sales’ totalled J$207.0 million, which is 3.3 per cent lower than the same quarter in 2021, gross profit came in at J$201.3 million for the quarter, a 5.0 per cent decrease from the previous year.

Operating expenses for the quarter came in at J$106.9 million, registering a J$3.2 million increase over the J$103.7 million incurred in the same quarter of 2021. Fixed expenses remain in line with management’s goal of keeping operational costs flat despite the meaningful inflation in the economy.

Most of the fixed expenses include the operating cost of Mailpack’s stores and the broad base of staff, which facilitate clearance, delivery, and customer servicing. As a result of the reduction in revenue and gross profit, and the static fixed cost, net income for the second quarter of came in at J$81.3 million, 14.4 per cent lower than the comparable quarter of 2021.

However, this was 44.4 per cent higher than the previous quarter.

Robinson advised shareholders in his quarterly report, “we are encouraged by the company’s performance this quarter as our financial performance rebalances from the shocks, both positive and negative, created through the social and economic impacts of the pandemic.”

Total assets at the end of the quarter stood at J$717.9 million, with J$252.6 million of cash on the balance sheet at the end of the period. Shareholders’ equity stood at J$607.2 million at the end of the second quarter.

This is within the context of paying J$225.0 million of dividends thus far this fiscal year. In his outlook, Robinson, Mailpack’s executive chairman remarked, “We continue to be pleased with the performance of Mailpac Group Limited and its operating team as the company continues to lead the industry and deliver unique value for customers through service and innovation. This has resulted in strong financial rewards for its shareholders.”

He emphasised that, “While the company continues to face pressure from inflation and increased travel, Mailpac continues to innovate and is preparing to launch novel solutions that will enhance the value and efficiency our customers garner from shopping online. We look forward to the upcoming quarter and want to thank our dedicated team and our customers for their continued support and for a continued future of ‘Happy Shopping’.”