Jamaican used car dealership, Jetcon Corporation, experienced a soft 2022 fourth quarter but grew its profitability at the end of the financial year.
Net profit at the end of the 2022 financial year amounted to J$24.76 million, up from the net profit of J$15.42 million in 2021. For the December 2022 fourth quarter a net loss of J$1.19 million was recorded versus a profit of J$3.83 million in 2021.
Pre-tax profit went up to J$28.76 million relative to the J$16.55 million profit booked in 2021. Tax charge for the year amounted to J$4 million, up from J$1.13 million in the previous year.
Comprehensive income grew
Total comprehensive income for 2022 amounted to J$24.77 million relative to J$15.43 million in the prior year. Revenues for the year closed at J$1.03 billion, up from the 2021 booking of J$869.59 million.
For the fourth quarter, revenues declined by 14 per cent to J$225 million, down from J$262.65 million booked in 2021. Cost of sales increased by 19 per cent to J$891.95 million (2021: J$750.79 million) and as a result gross profit increased by 18 per cent to J$140.37 million compared to J$118.80 million in 2021.
Total expenses increased by 10 per cent to J$111.21 million (2021: J$101.28 million). Selling and marketing expenses rose to J$25.69 million (2021: J$22.94 million), while administrative and other expenses recorded an increase of nine per cent, closing at J$85.53 million (2021: J$78.33 million).
Operating costs ended at J$34.04 million relative to operating costs of J$21.19 million booked the prior year. Earning per share (EPS) for the year amounted to J$0.04 relative to an EPS of J$0.03 in 2021.
Jetcon’s traded price as at June 20, 2023 was J$1.05 with a corresponding P/E ratio of 24.75 times. The company as at December 31, 2022, recorded total assets of J$641.83 million, down 14 per cent when compared to J$747.63 million recorded last year.
This decrease was mainly attributable to a 12 per cent decrease in ‘Inventories’ to J$392.71 million (J$447.10 million), as well as a 88 per cent decrease in ‘Cash and Bank Deposits’ to J$6.54 million (2021: J$53.67 million).
Total stockholders’ equity closed at J$579.55 million (2021: J$556.01 million) resulting in a book value per share of J$0.99 per share compared to J$0.95.