$101.9-million Q1 profit for Mailpac

Business

$101.9-million Q1 profit for Mailpac

BY ABBION ROBINSON
Business reporter
robinsona@jamaicaobserver.com

Wednesday, May 13, 2020

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Mailpac Group Limited (MGL) posted on Monday an unaudited, after-tax profit of $101.9 million for its first quarter ended March 31, 2020, an 18 per cent increase when compared with the previous quarter.

It should be noted that MGL started trading on October 1, 2019. Accordingly, the financial statements have no comparative period for 2019.

However, according to executive Chairman Khary Robinson, the company surpassed the revenue and profitability performance of the previous quarter, ending December 31, 2019.

Revenues for the quarter under review were $364.7 million, which is 0.8 per cent higher than the previous quarter, while operating expenses for the quarter were $76.1 million.

These expenses were comprised mostly of staff costs, advertising expenses, and store operating expenses.

According to Robinson, towards the end of the quarter the rapid spread of the novel coronavirus disease (COVID-19) in Jamaica led to lower consumer confidence and limitation on consumer movements, which has had varied impacts on the company's e-commerce platform.

“We are encouraged by the performance of the company in its first quarter as it surpassed the final quarter of the previous year when most consumer shopping occurs. While we anticipate that the crisis will present challenges and opportunities for our industry, Mailpac's strategy will continue to be focused on delivering the highest level of solutions and service to the consumer market through ecommerce,” Robinson stated in the report to shareholders.

Jamaica recorded its first imported case of (COVID-19) in early March.

“More importantly, we have taken all the necessary measures required to ensure the continued safety and wellness of our team and our customers. We have substantially expanded our delivery infrastructure and have employed various in-store strategies to limit person-to-person contact,” he said.

MGL, with 11 locations islandwide, facilitates online shopping and shipment to Jamaica by offering clients a US shipping/mailing address.

Total assets at the end of the quarter under review stood at $534.5 million, while shareholder's equity stood at $455.5 million.

Robinson added that the amalgamation of both business lines, Mailpac Services and Mailpac Local, have continued to generate meaningful momentum and operating efficiencies for Mailpac Group Limited.

MGL became publicly listed on the Junior Market of the Jamaica Stock Exchange on December 4, 2019, and through its IPO of shares on the Junior Market, has managed to raise $495 million — a record-breaking total creating a first in the history of the Junior Market.


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