JAM | Jul 20, 2022

Year-end profit up, revenue slightly down at Blue Power

/ Our Today

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(Photo: Facebook @BluePowerJA)

Durrant Pate/Contributor

Jamaican soap manufacturer Blue Power Group is reporting mixed fortunes in its 2021/2022 financial year, with year-end profit increasing on shrinking revenues.

Net profit for the year ended April 30, 2022, amounted to J$193.54 million relative to the J$106.57 million booked last year. The company reported a 44 per cent decrease in taxes in the year to J$15.56 million compared to the J$27.77 million paid in 2021.

Blue Power experienced a net loss of J$10.80 million for the final quarter compared to a net profit of J$23.65 million in 2021. Total comprehensive income went down to J$181.54 million coming from J$308.34 million in 2021.

The manufacturing company recorded a one per cent decrease in revenues to J$526.45 million relative to J$534 million recorded in 2021. For the fourth quarter, revenues increased 82 per cent from J$98.81 million in 2021 to J$179.93 million during the period under review. 

Primary revenue source

Blue Power reports that it earns “revenues primarily from the production and sale of soap for Jamaica and export markets. The business earns additional income from property rental and warehousing services, as well as management fees, interest and dividends.”

‘Cost of Sales’ for the year went up 12 per cent to J$373.42 million (2021: J$332.24 million). Gross profit for the year declined by 24 per cent to J$153.02 million (2021: J$201.76 million).

‘Administrative expenses’ amounted to J$191.19 million, a 26 per cent increase relative to J$152.19 million last year. ‘Impairment gains on trade receivables’ amounted to J$1.34 million relative to losses of J$7.52 million reported a year prior.

Whereas impairment gains on investment totalled J$1.71 million relative to gains of J$747,900 reported in 2021.  Consequently, operating loss totalled J$35.12 million, relative to operating profit of J$57.83 million for the prior year’s period.

Other income amounted to J$62.39 million relative to J$35.21 million booked in the prior year. Finance income amounted to J$26.61 million (2021: J$43.41 million), while ‘Finance Costs’ totalled J$3.07 million (2021: J$2.11 million) for the year-end.

Growth in assets

The company, as at April 30, 2022, recorded total assets of J$1.53 billion, an increase of 14 per cent when compared to J$1.35 billion recorded last year. This was as a result of the company booking ‘Interest in associated company’ of J$354.61 million (2021: nil).

Additionally, there was an 80 per cent increase in ‘Property, plant and equipment’, which closed at J$267.82 million relative to J$149.08 million recorded as at April 30, 2021.

Total Stockholders’ Equity as at April 30, 2022 closed at J$1.43 billion (2021: J$1.26 billion). This resulted in a book value per share of J$2.53 (2021: J$2.22).


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