Net profit and revenues declined marginally

Durrant Pate/Contributor

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).