Jamaica Teas Group revenues grow significantly based on increased exports

After a lacklustre year due to Qwi’s performance on the overall Jamaica teas Group (JAMT), the company delivered a superb first quarter as its profit attributable to shareholders grew by 321 per cent to $116.6 million against the backdrop of stronger exports sales which grew by 88 per cent to $273.9 million.

As more people become health conscious and focus on wellness, JAMT’S foreign sales of its teas and other assorted products have been making several leaps as it accounted for 64 per cent of its $428.3 million manufacturing sales.

After factoring costs of sales, JAMT’S gross profit increased by 41 per cent to $168 million. With QWI’S positive outrun for the first quarter and an increase in its controlling interest to 38.41 per cent, JAMT’S total income rose by 1,777 per cent to $309.3 million. This also included the sale of two more units at Violet’s View, which resulted in an additional $47.5 million with the remaining four-unit sale is expected to be closed by the end of the second quarter.

Even with the company incurring a $49.9 million tax charge, which didn’t include a tax remission, consolidated net profit came up to $181 million in contrast to the $44.5 million loss in the prior quarter. Diluted earnings per share came up to $0.053 versus the $0.013 which factors in the company’s recent three-toone stock split. Net current assets rose marginally to $3.07 billion with equity attributable to shareholders growing by 14 per cent to $1.8 billion.

Subsequent to the end of the quarter, JAMT bought an additional 30 million shares at $0.75 which resulted in JAMT’S QWI stake now standing at 40.6 per cent. This is up by six per cent since the 34.43 per cent stake JAMT had at QWI’S initial public offering.

This is expected to increase as QWI votes at its upcoming annual general meeting on share buy-backs which would reduce the number of shares in the company.