Mailpac posts higher revenues than projected
E-commerce business, Mailpac Group posted higher revenues than projected in its prospectus for the first quarter ended December 31, 2019.
Executive chairman Khary Robinson indicates that revenue for the quarter stood at $361.7 million, which is 5.9 per cent higher than projected in the prospectus ahead of its initial public offer.
Gross profit for the quarter was $181.7 million, surpassing the $176.8 million projected in the prospectus.
Mailpac Group was recently established to consolidate the operations of Mailpac Services and Mailpac Local, the two e-commerce businesses owned by Norbrook Equity Partners (NEP) and founded by Robinson.
Mailpac's Executive chairman, Khary Robinson
The company after a successful IPO in November 2019, listed on the Junior Market of the Jamaica Stock Exchange. The $495 million raised was slated for paying out debt and working capital.
Operating expenses for the first quarter stood at $86.9 million, comprised mostly of staff costs, advertising expenses and store operating expenses.
Profit before tax for the quarter, which also came in higher than was projected Robinson said, was $85.2 million while net profit recorded for the period was $74.5 million.
Robinson noted that directors were “encouraged by the performance of the company in its first quarter of operation as it surpassed our expectations on all metrics represented in the IPO prospectus. “
He said the amalgamation of the Mailpac Services and Mailpac Local business lines has created “significant momentum and operating efficiencies for Mailpac Group Limited.”
Total assets at the end of the quarter stood at $447.9 million, with $106.5 million of cash on the balance sheet at the end of the period.
Shareholder’s equity stood at $341.9 million at the end of 2019.
Robinson said the company had no long-term debt at the end of the period other than the $12.7 million owed to Norbrook Equity Partners.
The group consists of Mailpac Services, formerly MailPac Express which offers e-commerce fulfilment services from the United States to Jamaica; MailPac Marketplace for cross-border online shopping with local landed prices; Mailpac Local which facilitates local online shopping and delivery from local retailers; Mailpac Financial Services for online shopping financing; Mailpac Card, a branded MasterCard for shopping online and Mailpac Ocean Freight for sea freight shipping and brokerage services.
Mailpac Services enables customers to make online purchases from international retailers and have the goods delivered to Jamaica, while Mailpac Local enables consumers to make online purchases from local retailers, namely PriceSmart, HiLo and the Stationery Centre - and have the goods delivered to their homes.
Robinson stated that the company continues to lead the e-commerce market, adding, “we expect the company to continue benefitting from the rapid growth of online shopping in Jamaica, as well as its unique shopping tools.”
These, he said include free returns, its tax-free address and its landed price tool.