Caribbean Producers Jamaica Limited (CPJ) second quarter ended December 31, 2021

• CPJ reported a net profit of US$5.42Mn (EPS: US$0.48) for its 6 months ending December 31, 2021, up from a net loss of US$2.79Mn in the prior period.  This performance was supported by a 138.1% increase in revenues, ending the period at US$58.08Mn. 
• There was a surge in business activity during the period after the easing of COVID-19 restrictions resulted in greater tourist numbers, which boosted sales along with traditional Christmas activity. The company experienced a rebound in both its hospitality and retail channels, which had felt the full brunt of the pandemic. Overall most of its financial metrics saw a significant increase owing to higher business activity. 
• Going forward the company should continue to see a rebound in earnings on the back of recovery in the hospitality industry, although new variants of COVID-19 pose a downside risk, which could temper the pace of the recovery. 
• CPJ’s stock price has increased by 55.81% since the start of the calendar year. The stock closed Thursday’s trading session at $20.31 and currently trades at a P/E of 39.8x earnings which is above the Main Market Distribution & Manufacturing average of 25.9x. The significantly higher P/E for CPJ relative to its peers suggests that the market is already pricing in the recovery in its operations.

(Source: Company Financials)