Indies Pharma Sees Increase in Bottom-Line for Q1 2023

• For the first quarter ending January 31, 2024, Indies Pharma Jamaica Ltd. reported a net profit of $62.49Mn (EPS: $0.047), a 5.9% (or $3.46Mn) improvement over Q1 2023.
• Revenues grew 5.4% while direct expenses fell marginally (0.6%), causing gross profit to increase by 8.1% (or $14.22Mn). Indies Pharma implemented a new policy that enhanced the accuracy and efficiency of the inventory management process and contributed to the improvement in gross profit.
• However, the bottom line performance was tempered by an increase in administrative expenses of 29.7% (or $29.6Mn), as well as tax expenses.
• Of note, Indies completed its fifth year listed on the Junior Market in 2023, which marks the end of its 100% tax break. Starting this quarter, the company will start paying taxes on corporate profits at a rate of 5% for the next 5 years as it enters the second phase of its tax break.
• Indies Pharma’s stock price has decreased by 6.9% since the start of the year and closed Thursday’s trading session at $2.72 per share. At this price, the stock trades at a P/E of 17.0x earnings, which is above the Junior Market Distribution sector average of 14.0x earnings.

 (Sources: JSE and NCBCM Research)