Jamaica Teas’ Net Profit Down For The Nine Months Ended June 2020

• Despite a 39.9% (or $403.01Mn) increase in revenues, Jamaica Teas reported a 61.4% (or $135.20Mn) fall-off in net profit attributable to shareholders for the nine months ended June 2020 to $84.93Mn (EPS: $0.12). 
• The main contributor to this performance was the $475.22Mn in other operating losses recorded for the review period, relative to the $206.92Mn other operating income recorded in the previous year. Additionally, the company’s bottom line was also affected by increased costs: cost of sales rose by 39.7% ($289.86Mn), total operating costs grew by 13.6% (or $24.67Mn), while finance costs climbed 51.4% (or $8.14Mn).
• The stock has declined by 20.3% since the start of the calendar year. JAMT closed Wednesdays’ trading session at $5.00 and currently trades at a P/E of 14.7x earnings, which is below the Junior Market Manufacturing Sector Average of 22.1x.

(Source: JAM Teas Financials)