PanJam Reports Q3 Profits of $1.2 billion
Kingston, Jamaica: PanJam Investment Limited is reporting $1.2 billion in profit for the three months ended September 2017.
Net profit attributable to shareholders for the quarter ended September 30, 2017 amounted to $1.2 billion, compared to $1.3 billion in the 2016 third quarter, a decrease of eight per cent, equivalent to basic earnings per stock unit of $1.16 compared to $1.25 for the same period in 2016. However, excluding last year’s gain on disposal of Mavis Bank Coffee Factory, the quarter’s net profit attributable to shareholders increased 35 per cent compared to the same period last year.
For the nine months, net profit attributable to shareholders is two per cent better than last year, when gains were recorded on disposal of both Mavis Bank Coffee Factory and the group’s 20 percent interest in Hardware & Lumber.
PanJam’s third quarter performance was driven by stronger share of results of associated and joint-venture companies, led by Sagicor Group Jamaica, and improved operating profit in the current year. “Our share of results of associated and joint-venture companies for the third quarter was $1.1 billion, bringing the year-to-date total to $3.0 billion versus $2.4 billion for 2016, an increase of 22 per cent,” the company said in a release.
“Nine-month total share of earnings from Sagicor of $2.8 billion, 23 per cent higher than the prior year figure of $2.3 billion, reflect strong performances in employee benefits and individual insurance lines,” the release stated.
PanJam holds minority positions in New Castle Company Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Caribe Hospitality of Jamaica Limited (owners of the New Kingston Courtyard Marriott Hotel) and Chukka Caribbean Adventures (Chukka) — all of which performed satisfactorily during the period.
Investment income in the third quarter of 2017 was $202 million versus $76 million in the prior year. The improvement mainly reflects higher dividend income and realised and unrealised gains, while last year’s results were depressed by certain impairment charges.
Property income increased by 24 per cent for the quarter to $388 million from $312 million in 2016; and by 22 per cent for the year-to-date, moving to $1.1 billion from $918 million. Higher rental income resulted from more space leased on average as well as contractual rate increases, revaluation gains benefited from improving occupancy and net lease income was driven higher mainly by increased utility costs.
Group operating profit for the third quarter more than tripled to $291 million compared to $93 million during 2016, driven by the improvements in investment, property and other income partially offset by higher operating expenses.
The fluctuating nature of JA-US exchange rate movements and the relaxation of surrender requirements for dealers and cambios provide additional evidence of the improving macro-economic context in Jamaica. The company noted that it is also encouraged by the steady improvement in the unemployment rate, reportedly 11.3% as at July 2017 versus 13.7% as recently as April 2016.
“As more Jamaicans achieve the security of stable earnings through employment, there will be a positive effect on two elements vital to improved living conditions: faster growth and reduced crime,” stated PanJam.