Mayberry’s Losses Deepen in Q3 2025 amidst Depressed Stock Market Valuations

• Mayberry Group Limited (MGL) reported a net loss attributable to shareholders of $751.38Mn for the third quarter ended September 30, 2025 (Q3 2025), down from a $144.90Mn profit for Q3 2024. The loss stemmed from underperforming revenues, particularly from net interest expenses, net trading losses and unrealised losses on its investments.
• With interest expenses of $774.71Mn exceeding interest income of $652.99Mn, net interest expense totalled $121.71Mn. The higher interest costs were due to the growth in securities sold under repurchase agreements and borrowings. This was compounded by net trading losses of $21.49Mn, which compares to the $1.56Bn gain in Q3 2024. Additionally, there was a net foreign exchange loss of $37.24Mn, compared to $95.51Mn gains seen in Q3 2024. The group also faced net unrealised losses on its financial instruments and investments in associates of $259.18Mn and $312.08Mn, respectively. Consequently, MGL had a total investment loss of $272.69Mn versus $980.37Mn gains for Q3 2024.
• Beyond the investment loss, Q3 operating expenses also increased by 14.6% to $748.33Mn. This was primarily due to higher other operating expenses, up 56.6% to $426.75Mn.This line item comprised operational losses, legal and professional fees and sales/marketing expenses.
• MGL’s Q3 2025 performance contributed to a net loss attributable to shareholders of $2.40Bn for the nine months ended September 30, 2025 (9M 2025). This compares to a loss of $560.9Mn for 9M 2024.
• The 9M loss reflects persistently unfavourable market performance. Notably, net unrealised losses on associate companies, Supreme Ventures (-35.4%), and Dolla Financial (-30.1%) declined year to date. Mixed performance of non-interest income also put pressure on the Group’s 9M earnings. Fee and commission income rose by 15.5% on stronger transaction activity, and net FX gains increased by 5.4% due to the revaluation of foreign-currency balances. This was negated by dividend income (-24.7%) as investee declarations declined, and net trading activity, which swung to a $13.7Mn loss compared to $1.6Bn in gains in 2024, which included the sale of the Group’s 20.0% stake in CPJ.
• Prospectively, through MGL’s 36.78% stake in Mayberry Jamaican Equities Limited (MJE), the Group remains exposed to several JSE-listed entities that are vulnerable to economic aftershocks from Hurricane Melissa, including SVL, JBG, WIG, Iron Rock, DOLLA, and LASF. While some companies have indicated that the storm’s direct impact on their operations was limited, there is still potential for medium-term contagion effects as the expected rise in inflation filters through to operating expenses and consumer demand. This dynamic could pressure short-term earnings potential across the portfolio. Moreover, an anticipated economic downturn could also bear on the stock market, fuelling more unrealised losses in the near term and lower trade income.
• As at the close of trading on Monday, MGL’s stock price closed at J$7.04, reflecting a 25.7% year-to-date decline. At this price, MGL trades at a P/B of 0.56x, which is below the Main Market Financial Sector Average of 1.16x.

(Sources: MGL Financial Statements, NCBCM Research)