Mailpac revenues up but profits flatFriday, May 21, 2021
BY DAVID ROSE
As more Jamaicans continue to source goods to make their home environment more accommodative, Mailpac Group Limited (MGL) has reaped substantially rewards from this demand as its revenue for the first quarter climbed by 29 per cent to $470 million.
The company, which offers courier services and online shopping to a variety of customers, has firmly set its roots in place as it recorded its third-straight quarter of revenue topping the $450-million mark.
However, the company saw its gross margins continue to get impacted as cost of sales rose by 35 per cent to $244.9 million. MGL attributed this increase to the abnormal spending on freight costs associated with the challenges from airlift. Gross profit closed the quarter at $225.1 million compared to $184.3 million in the prior comparative period.
Operating expenses grew by 48 per cent to $122.3 million as the company ramped up its operational capacity to manage future growth in package volume. Despite a small increase in other income and no income taxes, Mailpac's net profit came in one per cent higher at $103.4 million with earnings per share flat at $0.04.
Total assets for MGL were up by 17 per cent to $623.6 million as the company invested more into its property, plant and equipment which included a new leased space. Total liabilities were up by 25 per cent to $98.5 million while shareholders equity increased by 15 per cent to $525.1 million. Mailpac declared a dividend of $0.05 ($125 million) to shareholders on record as of June 1 for payment on June 15. After the end of the quarter, MGL launched its prepaid Mastercard to the public.
“Despite our substantial revenue growth, we are also cognizant of the fact that we have realised positive and adverse impacts on our operation during the pandemic and there remains uncertainty of its long-term implications on our business or our key providers. Accordingly, Mailpac will enhance all areas under our control and continue investing in the delivery of superior ecommerce solutions and service in the industry. We look forward to Q2 and want to, again, thank our dedicated team and our customers for their continued support and for a continued future of 'Happy Shopping',” stated chairman of Mailpac Khary Robinson in his report to shareholders.
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