Jamaican Teas reports improvement in profit

• For the nine-month period ended June 30, 2019, Jamaican Teas (JAMT) reported a net profit of  $267.75Mn (EPS: $0.32)  representing a 103.9% improvement when compared to the $131.32Mn (EPS: $0.23) registered one year prior.
• The main contributors to the improved performance were a decline in the cost of goods sold (32.4%) as well as an increase in other income to $206.92Mn, up from $61.77Mn in 2018.
• Notably, the other income figure includes $126.30Mn for fair value gains on equity investments.    Excluding this, the company would have realized a normalized net profit of $150.30Mn for the current period, which represents a 14.9% improvement over the prior year.
• JAMT’s stock has fallen 0.4% since the start of the calendar year, closing yesterday’s trading session at $4.48 per share.  At its current price, the stock now trades at a P/E of 10.77x earnings which is below the Junior Market Manufacturing sector average of 31.19x.

(Source: Jamaican Teas Financials)