Company Limited: "We Foster Rich Customer Service"
Company Limited: "We Foster Rich Customer Service"
Company Limited: "We Foster Rich Customer Service"
The Board of Directors report the unaudited results of the Company for the three months ended 31
March 2021 and to report on the performance of the Company.
Financial Highlights
• Revenues - $549.2 million, up 22% from $448.8 million in the prior period
• Gross profit - $191.7 million, up 13% from $169.9 million in the prior period
• Net profit - $38.4 million, up 697% from $4.8 million in the prior period
• Earnings per stock unit - $0.08, up from $0.01 in the prior period
Income Statement
Income
The company generated income for the first quarter of $549.2 million compared to $448.8 million for
the prior reporting period. Gross profit for the year-to-date was $191.7 million compared to $169.9
million for the prior reporting period. These increases were attributed primarily to increased sales in
seven (7) of our eleven (11) Product Groups as follows: Electrical Lighting, Hardware, LED, Panels,
PVC, Solar and Wiring Devices.
Administration Expenses
Administration expenses for the year-to-date was $143.6 million, reflecting a reduction of $2 million on
the prior reporting period amount of $145.6 million. The changes was driven primarily by reductions in
legal and professional fees and computer expenses. There were increased staff related costs for
salary adjustments, increased sales commission due to improved sales performance and
improvements in staff benefits; increased motor vehicle expenses and increased occupancy cost due
to the commencement of obligations in January for the second Hayes factory building.
Finance Cost
Finance cost for the year-to-date was $24.8 million compared to $26.2 million for the prior reporting
period, a reduction of $2 million. This reduction is being driven primarily by reductions in amortising
facilities.
Net Profit
Net Profit generated for the period was $38.4 million, up 697% compared to the $4.8 million reported
for the prior reporting period.
Balance Sheet
Inventories
The company continues to closely manage inventory balances and the supply-chain, with a view to
ensuring that inventory balances being carried are optimised, relative to the pace of sales, the time
between the orders being made and when goods become available for sale, to avoid both
overstocking and stock-outs. Monitoring is both at the individual product level and by product
categories. Inventories have remained stable over both periods.
Receivables
We continue to closely manage receivables with an emphasis being placed on balances over 180
days. We have implemented strategies to collect these funds as well as to ensure that the other
buckets are managed. Sixty-eight and one-half percent (68.5%) of receivables are within the current
to 60 day category.
Trade Payables
Our trade payables are categorised by foreign purchases, local purchases and other goods and
services. We have concentrated primarily on the foreign payables as the bulk of our inventories are
sourced from overseas.
Non-current Liabilities
Non-current liabilities have increased by $200 million due to our booking of the lease obligation in
connection with the lease of the second Hayes factory building which commenced in January 2021.
Shareholders’ Equity
Shareholders’ equity now stands at $906.7 million, up from the $868.6 million at 31 December 2020.
The net increase of $38.1 million arose primarily as a result of retained profits for the year-to-date.
Our total shareholder count has increased to 1,524, up by 129 from the 1,395 at 31 December 2020.
COVID-19
In the first quarter of 2020, the World Health Organization declared the Novel Coronavirus (COVID-
19) outbreak a pandemic, and the Government of Jamaica declared the island a disaster area on 13th
March 2020. The pandemic and the measures to control its human impact have resulted in
disruptions to economic activity and business operations. This could have significant negative
financial effects on the Company, our suppliers, our customers and our financiers, depending on
several factors such as the duration and spread of the outbreak, the restrictions and advisories from
the Government of Jamaica and the governments of our overseas suppliers. The prolonged epidemic
threat increases the risk of economic slowdown, which may affect our financial performance. We
continue to monitor and manage this risk. Despite staff shortages resulting from quarantine we have
managed to keep all our stores open. We continue to adopt and implement all of the safety measures
being promulgated by the Government of Jamaica.
We are cognizant that despite the challenges ahead within this operating space, that we have the
right talents and leadership to deliver on our plans for the ensuing period. We will continue to execute
on our plans to ensure that we remain competitive and deliver value solutions to our customers.
As we report on the performance of our Company, we thank our shareholders, employees, customers
and other stakeholders for their support as we continue to expand our business and bring greater
value to our various stakeholders.
Managing Director
Accounting Policies
The accounting policies used in the preparation of these financial statements have remained
unchanged since the last audit and the account classifications have also remained the same.
Standards, interpretations and amendments to existing standards that became effective after 1
January 2021 have been evaluated and will have no significant effect on the amounts and disclosures
in these financial statements.
STATEMENT OF COMPREHENSIVE INCOME
Period ended 31 March 2021
3 Months to 3 Months to
Mar-21 Mar-20
$ $
EQUITYAND LIABILITIES
Equity:
Share capital 369,620,810 369,620,810
Treasury Shares (8,818,004) (8,545,728)
Capital reserves 66,921,695 66,921,695
Retained earnings 478,931,743 440,566,587
906,656,244 868,563,364
Non-current liabilities:
Right-of-use Liability 539,005,246 336,854,237
Long-term liabilities 1,222,215,728 1,216,599,381
Directors' loan 47,094,460 54,600,414
1,808,315,434 1,608,054,032
2,714,971,678 2,476,617,396
Approved for issue by the Board of Directors on 27th April 2021 by: