QWI Unaudited First Quarter Ended December 31, 2021
- QWI Investments Limited reported a net profit of $83.04Mn (EPS $0.06) for its first quarter ending December 31, 2021, a 9.5% decline the same period last year.
- The lower outturn was influenced by a $14.4% reduction in gains from investments. QWI's investment portfolio has high exposure to Jamaica equities (75% of its total portfolio). Throughout QWI’s first quarter the Jamaican stock market declined, which resulted in lower stock prices, and subsequently, adversely affected the company’s topline. However, looking at the company’s top five Jamaican stock holdings, which includes only main market stocks, only Caribbean Cement experienced a significant decline during the quarter.
- Earnings were also eroded by a surge in administrative expenses surged from $10.62Mn to $32.32Mn due to increased insurance and investment management expenses. Of note that no fees were incurred in Q1 FY 2020-21 for the services of the Investment Committee.
- QWI’s stock price has declined by 1.59% since the start of the calendar year. The stock closed Tuesday’s trading session at $0.87 and currently trades at a 42% discount to its net asset value (NAV). The most recent NAV per share was $ 1.50 as of January 28, 2022.
(Sources: Company Financials and JSE)