Indies Pharma Reports a YoY Decline in Earnings

• For the nine months ending July 31, 2021, Indies Pharma Jamaica Ltd. reported a 34.8% year over year decline in net profit to $103.58Mn (EPS: $0.08) due to an increase in direct, indirect and finance costs. 
• While revenues grew by 11.9%, this was outweighed by a 38.4%, and 2.0% rise in cost of sales, admin and other expenses, respectively, and a 56.5% drop in foreign exchange gains. The challenges related to the COVID-19 pandemic, such as increased logistics cost and currency depreciation, continue to be unavoidable and have adversely impacted Indies Pharma’s bottom-line. 
• Following the acquisition of a loan to make strategic investments to improve its future profitability and shareholder value, the company recorded finance cost of $51.66Mn during period, which also eroded its bottom-line. 
• The stock closed Tuesday’s trading session at a price of $3.26 per share, up 23.4% since the start of this year. At this price, Indies Pharma trades at a P/E ratio of 27.2x earnings, which is above the junior market distribution sector average of 17.5x.

(Source: Indies Pharma Financials)