Profitability waned in 2022

Durrant Pate/Contributor

Sagicor Real Estate X Fund Limited has been struck by heavy losses on financial assets and liabilities, which was a drag on profitability, which waned in 2022.

Net capital loss on financial assets and liabilities amounted to J$238.26 million in 2022 relative to net capital gain of J$1.19 billion in the prior year, which is a major about-turn. Sagicor X Fund saw its profitability going down in 2022 closing the year at J$465.91 million compared to J$720.87 million in 2021.

Net profit for the December fourth quarter amounted to J$254.31 million versus J$441.94 million in 2021. Operating Profit for the year closed on J$731.02 million, down from J$990.60 million booked in 2021.

Pre-tax profit closed the year at J$731.02 million, a decline year over year from a net profit of J$757.51 million. Total comprehensive income for the year amounted to J$2.51 billion relative to a profit of J$978.05 million booked last year.

Growth in revenues

Total revenue for 2022 came out at J$7.12 billion relative to the J$5.79 billion reported in 2021, a 23 per cent increase year over year. For the fourth quarter, revenues moved from J$1.88 billion in 2021 to J$1.94 billion in 2022.

Hotel revenue for the 12-month period increased by 60 per cent to J$7.07 billion relative to J$4.43 billion in 2021. Operating expenses grew by 33 per cent to J$6.39 billion (2021: J$4.80 billion). Of this:

• Hotel Expenses increased to J$5.05 billion, up by 50 per cent compared to J$3.37 billion in the prior year. For the last quarter, hotel expenses closed at J$1.27 billion versus $985.99 million in the fourth quarter of 2021.
• There was a depreciation of J$875.18 million (2021: J$811.02 million) for the period under review. Interest expense fell 39 per cent in the year to J$321.88 million (2021: J$529.45 million).
• Other operating expenses decreased to J$141.40 million (2021: J$94.81 million). For the December quarter, other operating expenses fell by 4% to close at J$36.84 million (2021: J$35.48 million). 

The earning per share (EPS) for the year amounted to J$0.21 (2021: EPS of J$0.17). EPS for the December quarter closed at J$0.11 (2021: J$0.20).

Sagicor X Fund, as at December 31, 2022, had total assets worth J$28.65 billion, a decrease of eight per cent when compared to J$31.32 billion recorded as at December 31, 2021.

Total shareholders’ equity as at December 31, 2022 closed at J$19.10 billion, a 15 per cent increase from the J$16.59 billion reported for the corresponding period last year. This resulted in a book value per share of J$8.52 (2021: J$7.40).