Wed | Apr 8, 2020

Mailpac reports $74m profit

Published:Wednesday | February 19, 2020 | 12:19 AM

Courier company Mailpac Group Limited beat its own revenue forecast for the December quarter, and is bullish about the year ahead based on expectations of growth in the online shopping space.

The company in its first set of financials since its listing on December 4, reported revenue of $361.7 million over three months, which was 5.7 per cent higher than the projections of $342.1 million for the period, outlined in its IPO prospectus.

Executive Chairman Khary Robinson told the Financial Gleaner that the company surpassed its expectations in terms of both package volume and revenue.

However, at the bottom line, while Mailpac made higher pre-tax profit of $85.2 million its net profit was lower at $74.5 million compared to $78.84 million projected in the prospectus.

“Our focus was on pre-tax profit, a measure on which we also exceeded our expectations or projections,” said Robinson.

Mailpac provides international and domestic courier and mail order services, as well as online shopping. Its fiscal year ends in December, but its first set of financials showed just one quarter of activity with no comparatives for the previous year.

Mailpac Group, which lists its incorporation date as September 2019, the time around which it acquired the net assets of Mailpac Local Limited, as well as assets and liabilities of Mailpac Services Limited. Goodwill booked from the acquisition was approximately $171 million.

In December, the company reported total assets of $448 million and equity at $341.9 million as at December 2019. Long-term liabilities was just over $19 million.

“We are pleased with the performance of Mailpac Group Limited in its first quarter of operation,” said Robinson. “We expect the company to continue benefiting from the rapid growth of online shopping in Jamaica, as well as its unique shopping tools,” he said.