Tax impacts results for Indies Pharma Jamaica Limited

 


Indies Pharma Jamaica Limited saw top-line revenues grow in the year ended October 31, 2024, exceeding a $1.158 billion mark in gross revenue versus J$ 1.055 billion in the prior fiscal year 2022-23, an increment of ten per cent.

Effective 14th August 2023, as a listed company on the Junior Market of the JSE, the initial five-year zero corporate income tax (CIT) incentive period came to an end.

From the 15th of August 2023 Indies has been incurring a CIT bracket of 12.5 per cent. Despite the impact of CIT, the positive net profits trend continues with an increase of 4 per cent (year on year).

Management commented in the recently published annual report, “We were able to achieve sustainable growth by strategically managing the supply chain logistics, minimal inventory loss due to expiry goods, and continued to hold on to our market share without much of the out-of-stock situations as in the past.”

The total comprehensive income/net profit was J$221 million and J$213 million for the twelve-month periods of 2024 and 2023, respectively. This was an increase of 4 per cent despite the full year of Corporate Income Tax effect (50 per cent applicable) from the 15th of August 2023.

Earnings per share (EPS) for the twelve-month period ending 31st October 2024 increased by 4 per cent, to 16.6 cents per share compared to 15.9cents in the prior period, indicating sustainable growth.

Total assets at the end of the twelve months stood at J$2.3 billion versus J$2.2 billion during the comparative period of 2023 reflecting an increase of 4.6 per cent,

Total liabilities decreased by 0.84 per cent in 2024 to J$1.012 billion from J$1.021 billion in 2023.

The company’s debt to equity ratio was 0.80 in 2024 in keeping with the strategic decision to keep debt within manageable proportions and to manage any financial risk.

Return on Equity decreased from 18 per cent in 2023 to 17 per cent which management describes as being well within the industry’s benchmarks for performing companies.

The company’s current ratio reduced to 0.85 from 5.07 in the prior year, due to moving the growth capital (bond funds J$805mil) from non-current liabilities to current liability.

Working Capital for 2024 was J$$672 million, an increase of J$ 91M or 16 per cent over the corresponding period of 2023.

Caribbean Money Daily

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