Mayberry Jamaican Equities Limited Returned to Profitability In Q2 2026

  • Mayberry Jamaican Equities Limited (MJEL) staged a significant earnings recovery in Q2 2026, returning to profitability with net earnings of US$5.58Mnn for the three months ended June 30, 2026. The result represented an approximately US$18.9 million turnaround from the US$13.3 million net loss recorded in Q1 2026 and a US$14.16Mn improvement compared with the US$8.78Mn loss reported in Q2 2025, a sharp reversal in investment performance.
  • The recovery was driven primarily by stronger market valuations across the Company's investment portfolio, particularly its key associate holdings. This resulted in net unrealised gains of US$5.1Mn on investments in associates during the quarter. MJEL also recorded US$0.79Mn in net unrealised gains on financial instruments measured at fair value through profit or loss (FVTPL), further supporting overall earnings.
  • Although investment gains supported the return to profitability, dividend income remained below the prior-year period, indicating that the quarter's earnings recovery was driven largely by favourable mark-to-market movements rather than recurring investment income
  • Total operating expenses amounted to US$0.26Mn for the quarter, representing a decrease of 15.8% when compared to Q2 2025. The reduction was mainly attributable to lower expenses incurred for management fees, partially offset by higher professional fees. For the six months ended June 30, 2026, total operating expenses decreased by 5% or US$0.02Mn when compared to the prior year.
  • Despite the strong second-quarter rebound, MJEL reported a net loss of US$7.70Bn for the six months ended June 30, 2026, reflecting the significant losses incurred during the first quarter. Nevertheless, the year-to-date loss narrowed substantially from US$31.04Mn in the corresponding period of 2025, highlighting a marked improvement in financial performance as equity market conditions stabilised.
  • Looking ahead, earnings are expected to continue recovering through the remainder of the year, supported by positive performance in a set of large-cap stocks since the start of 2026. However, risks remain, as persistent inflationary pressures could delay the Bank of Jamaica’s easing cycle. A slower pace of interest rate reductions may weigh on equity market momentum, given that lower rates are typically a key catalyst for improved stock market performance.
  • MJE’s stock price has decreased by 26.9% since the start of the year to close at $6.40 on August 3, 2026. At this price, the stock is trading at a price-to-book (P/B) ratio of 0.8x, which is below the Main Market Financial Sector’s average of 1.1x.

(Sources: JSE & NCBCM Research)