Mailpac’s Earnings Rebounds in Q3 Following MyCart Integration

• After several consecutive quarters of decline, MailPac reported a 66.1% increase in Q3 net profit to $114.00Mn compared to $68.62Mn in the prior year. Despite the robust third-quarter recovery, Mailpac recorded a 10.1% ($20.52Mn) year-over-year (YoY) decline in earnings to $182.67Mn for the nine months ended September 30, 2024.
• At the end of Q3 2024, revenue totalled $732.03Mn, an 82.9% increase from the prior year. The strategic integration of MyCart Express, acquired in March 2024, as well as the continued performance of its core brands, were the primary drivers of the brisk topline growth.
• Further, operating expenses for the quarter surged to $224.15Mn (91.9%), reflecting higher operating costs with the amalgamation of MyCart Express, along with growth in operating expenses from its existing business.  Higher airline freight charges, system upgrades and restructuring initiatives, aimed at harmonizing the brands, were among the contributors to the increase in expenses.
• The acquisition of MyCart Express has positioned MailPac as the largest courier platform in the Caribbean, now delivering over 1.5Mn packages annually. Consequently, the company has been focusing on technological improvements to drive cost efficiencies and innovation. As these strategies continue to unfold, MailPac anticipates significant synergistic benefits, operational efficiencies, and enhanced revenue.
• MailPac’s stock price has increased by 10.5% since the start of the calendar year, closing Wednesday’s trading session at $2.42. At this price, the stock trades at a P/E of 26.89x, above the Junior Market Distribution Sector Average of 19.95x.

(Source: NCBCM Financial Research & FESCO Financial Statements)