Mayberry Jamaican Equities (MJE) has reported significant financial improvements in the first three quarters of 2024, despite challenging market conditions characterized by falling interest rates and volatile stock prices.
The company’s financial results demonstrate its resilience, strategic execution, and ability to create value for shareholders.
For the first quarter of 2024, MJE posted a total net profit of $211.8 million, with total comprehensive income amounting to $113 million, a substantial turnaround from the losses of 2023, where the market experienced a general downturn of over 30%. Year-to-date, MJE’s total comprehensive income stands at $448 million, a notable improvement compared to $167 million in the same period last year, reflecting a 110% increase in profit per share and total comprehensive income.
Furthermore, MJE reported a trading loss of $256 million year-to-date, which compares favorably to the $2.1 billion loss recorded in the same period last year. This is the second consecutive quarter where MJE has posted a trading profit, and the company expects to fully overcome the trading losses by the end of the fourth quarter of 2024.
Despite a 4.7% reduction in total assets, MJE has demonstrated its ability to enhance shareholder value with a 1.1% improvement in shareholders' equity, now standing at $192 million. The company's ability to navigate the headwinds caused by falling interest rates and a sluggish market recovery has been key to its overall success this year.
One of the most significant transactions this year was MJE's sale of its 20% stake in Caribbean Producers Jamaica (CPJ) for $2.3 billion at a price of $10.50 per share, while the stock was trading at approximately $9. The sale, brokered to AS Bryden Holdings Ltd, underscores MJE’s strategic prowess and ability to execute deals at a premium to market value.
Chris Berry, Executive Chairman of MJE, commented, “The team at CPJ carried the company as far as we could, and for CPJ to continue growing and prospering, it was necessary to have a partner with a larger platform. The cross-pollination between CPJ and AS Bryden will unlock significant opportunities, which is why we were able to secure a premium on the market price. This transaction reflects our ability to execute large trades and find strategic investors, driving shareholder value.”
MJE’s leadership remains optimistic about the current macroeconomic environment. "All the macroeconomic variables seem to be moving in the right direction: interest rates are coming down, and inflation is within range," said Chris Berry. "Interest rate cycles create opportunities. When things are slow, and interest rates are high relative to stock values, it creates a huge buy-in opportunity. I’m looking for companies that will grow consistently over the next 5-10 years. I’m focusing on the medium to long term, and that’s why we don’t carry much debt, as it can really eat into the principal of the investments."
Gary Peart, CEO of Mayberry Group, added, "When you look at the economy, many sectors will benefit from the reduction in interest rates. As rates go lower, it’s positive for the economy and will drive more economic activity, which will help improve profits for undervalued companies. I believe selective companies will perform very well in the long term."
Despite several stocks remaining down by 15-30%, MJE continues to execute strong strategic deals, positioning itself for long-term growth. Apart from the CPJ sale, MJE has increased its holdings in companies such as Dolla Financial, Jamaica Broilers, Wisynco, WIG, and JMMB throughout 2024.
With positive total comprehensive income year-to-date and a commitment to de-risking and deleveraging the business, MJE remains focused on driving value for shareholders even in a challenging market environment.