Mailpac Group Limited saw revenue of JM$730.9 million for the six-month period ended June 30, with net profit of JM$189.74 million.
Revenue for the June quarter was J$366.1 million, which was J$1.4 million higher than the previous quarter ending March 31, 2020. Net profit was J$87.83 million.
Executive Chairman of Mailpac, Khary Robinson, indicated in statements attached to the period’s results that despite the second quarter traditionally being the slowest in online retail, the company had achieved its highest ever quarterly revenue.
However, Robinson declined to offer comparative data, noting that Mailpac started trading on October 1, 2019.
“We anticipate that the crisis will continue to present challenges and opportunities for our industry.”– Mailpac Executive Chairman Khary Robinson
In the final quarter of 2019, Mailpac Group consolidated the operations of Mailpac Services and Mailpac Local, the two e-commerce businesses owned by Norbrook Equity Partners (NEP), founded by Robinson.
The group consists of Mailpac Services, formerly MailPac Express which offers e-commerce fulfilment services from the United States to Jamaica; and MailPac Marketplace for cross-border online shopping with local landed prices.
It also includes 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.
Robinson disclosed in the six month results that the company saw a “short term decline” in the international business in June quarter.
However, he said there was a commensurate increase in local shoppers who purchased household and office supplies in the midst of limitations on movement and social interaction.
Mailpac’s operating expenses for the June quarter were J$68.6 million. This he said was significantly lower than the previous quarter and comprised mostly COVID-19 related reductions in staff costs, advertising expenses, and store operating expenses.
“We are encouraged by the performance of the company in its second quarter as we navigated through the adverse impact of COVID-19 on our international shopping business,” Robinson said.
“The amalgamation of our two business lines, Mailpac Services and Mailpac Local, proved to be a tremendous diversification tool as intended,” he added.
Total company assets at the end of the quarter stood at J$616.2 million, which included J$276.6 million of cash.
Shareholder’s equity stood at J$543.4 million at the end of Q2 2020.
Robinson said the sustained impact of COVID-19 has led to significant uncertainty in the consumer space.
“We anticipate that the crisis will continue to present challenges and opportunities for our industry. Accordingly, Mailpac remains focused on delivering the highest level of ecommerce solutions and service in the industry,” he stated.
Robinson said the company is currently exploring a number of strategic initiatives to serve a broader base of customers and have deeper share of wallet with our current ones,” he outlined. He did not specify the strategies under consideration.