Jamaica Teas’ net profit down in the first quarter

• Jamaica Teas reported unaudited net profit of $27.70Mn (EPS: $0.04) for the first quarter December 2019, a fall-off of 44.4% (or $22.10Mn) from the $49.80Mn reported one year prior. 
• The main contributor to the performance was increased expenses: sales and marketing cost increased by 30.6% (or $3.23Mn) while administrative expenses climbed 87.4% (or 36.22Mn).  This jump in administrative costs was attributable to increased staff costs and professional fees coupled with a foreign currency transaction loss at QWI of $21.0Mn.
• The stock has declined 3.8% since the start of the calendar year. JAMT closed Tuesdays’ trading session at $6.03 and currently trades at a P/E of 11.9x earnings which is below the Junior Market Manufacturing Sector Average of 19.3x.

(Source: JAMT’s Financials)