Net profit and revenues declined marginally
Profitability at Sagicor Group Jamaica slowed in 2022, indicative of the island’s challenging business environment.
Net profit for the year ended December 2022 closed six per cent lower at J$16.60 billion, down from J$17.64 billion booked in 2021. Investment and corporation taxes of $5.33 billion were incurred compared to J$6.45 billion 12 months prior.
Net profit attributable to shareholders closed at $16.38 billion relative to $17.40 billion in 2021. Total comprehensive income for the year went down by 100 per cent, closing at J$6.64 billion compared to the J$13.15 billion posted in 2021.
Earnings per share (EPS) for the year amounted to J$4.19 relative, versus an EPS of $4.45 in 2021.
Sagicor’s stock closed trading yesterday (March 1) at J$52.97 with a corresponding P/E of 12.63 times.
Marginal drop in revenues
Sagicor Group Jamaica reported a five per cent decline in total revenues to J$97.10 billion from J$102.56 billion in 2021. Total revenue for the year end was broken down as follows:
· Net premium revenue increased by seven per cent to a total of J$56.55 billion compared to J$52.78 billion last year.
· Net investment income fell to J$17.38 billion from J$27.96 billion in 2021, a 38 per cent decrease.
· Fees and other revenue increased six per cent to J$18.51 billion from J$17.40 billion in 2021.
· Hotel revenue increased by five per cent to J$4.66 billion from J$4.42 billion in 2021.
· Benefits and expenses totalled J$75.87 billion for the period, a fall of three per cent from J$78.23 billion.
Of this, administration expenses increased by 15 per cent to J$28.15 billion (2021: J$24.42 billion). Other taxes and levies totalled J$893.28 million, an 11 per cent increase relative to J$830.77 million recorded in the prior year.
Joint venture returns
Share of profit from joint venture amounted to J$439.99 million relative to a share of profit of J$607.76 million booked a year earlier. Impairment of goodwill for the year was nil in comparison to J$614.40 million in 2021.
Loss on dilution of interest in associate totalled nil from a loss of J$233.09 million in 2021. Total assets decreased by two per cent or J$8.81 billion to close at J$519.18 billion as at December 31, 2022 from J$527.99 billion the year prior.
The movement was mainly attributable to a 69 per cent or J$14.37 billion decrease in ‘Property, plant and equipment’ which closed at J$6.41 billion (2021: J$20.78 billion). Equity attributable to stockholders of the company as at December 31, 2022 stood at J$113.87 billion (2021: J$114.82 billion), resulting in book value per share of J$29.16 (2021: J$29.40).