September 11, 2023
Blue Power Group Limited (BPOW) for the first quarter ended July 31, 2023, reported a 1% increase in revenue totalling $216.33 million compared to $214.26 million in the corresponding three months last year.
Cost of sales amounted to $143.62 million (2022: $169.99 million), this represents a decrease of 16% year over year. Consequently, gross profit increased by 64% to $72.71 million compared to $44.27 million for the first quarter ended July 31, 2022.
Impairment gains on investment closed at $30,799 (2022: losses of $741,371), while impairment gains on trade receivables closed at $1.64 million (2022: losses of $8.17 million).
Administrative and other expenses increased by 7% from $45.22 million in 2022 to $48.58 million for the three months period under review.
Other income for the three months amounted to $4.94 million, a 53% decrease relative to $10.50 million reported in 2022.
Finance income totalled $9.89 million, an increase of 1806% from the corresponding period last year (2022: $518,857), while finance cost amounted to $1.12 million, a 40% increase relative to $798,694 reported in 2022.
Profit before taxation for the three months had a 480% increase to reach $48.15 million (2022: $8.30 million). Taxation for the three months amounted to $10.15 million, a 633% increase from the $1.38 million reported in 2022.
Net profit increased by 449% to $38.00 million (2022: $6.92 million). Comprehensive income for the first quarter totalled $38.00 million, relative to the $6.92 million reported twelve months prior.
Consequently, earnings per share (EPS) for the three months amounted to $0.07 (2022: EPS: $0.01). The twelve-month trailing EPS was $0.20, and the number of shares used in these calculations was 564,990,000. Notably, BPOW’s stock price closed the trading period on September 11, 2023, at a price of $2.39 with a corresponding P/E ratio of 12.00x.
Management noted: “During the quarter we continued to complete capital projects and make improvements to our quality systems, efficiency, facilities and product lines. We remain hopeful that these improvements will allow Blue Power Group to grow its export volumes in the years ahead by manufacturing and co-packing bar soaps for the international market. We believe that our export prospects are directly in line with Jamaica’s goal of developing a logistics-centered economy with value-added manufacturing that serves regional and international markets.”
Balance Sheet Highlights
The company’s assets totalled $1.63 billion (2022: $1.55 billion). This increase was largely due to cash and cash equivalents, which grew 757% from $20.23 million in 2022 to $173.33 million in 2023.
Shareholder’s equity was $1.54 billion (2022: $1.44 billion), representing a book value per share of $2.72 (2022: $2.54).
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