PURITY reports six months net loss of $8.49 million

Consolidated Bakeries (Jamaica) Limited (PURITY) for the six months ended June 30, 2017 recorded a 5% decline in revenue to $447.60 million from $471.52 million reported for the corresponding period in 2016. For the second quarter the company recorded a revenue of $219.69 million (2016: $210.96 million), representing a 4% growth.

Cost of sales for the period declined 1% to close at $296.21 million (2016: $299.21 million), leading to a gross profit of $151.39 million (2016: $172.45 million). Within the quarter PURITY recorded cost of sales of $150.69 million, up 12% relative to $134.86 million booked at the end of the second quarter for 2016.  As such, second quarter gross profits totaled $69 million, down 9% year over year (2016: $76.10 million).

Other income decreased 23% to $2.32 million relative to $3 million booked for the comparable period in 2016.

The company reported total expenses of $159.67 million, an increase of 9% when compared to the $145.83 million reported in 2016. Administrative expenses amounted $91.62 million ,up 10% relative to the $83.50 million reported in 2016, while, selling expense was up 9% to close at $68.05 million (2016: $62.33 million). Total expenses for the second quarter amounted to $83.54 million, up 15% year over year from $72.77 million booked in 2016.

This resulted in an operating loss of $5.96 million for the six month period, compared to an operating profit of $29.62 million documented for the comparable period in 2016.

Finance costs inched up 2% to close at $2.53 million versus $2.48 million in 2016.

Consequently, PURITY recorded pre-tax losses of $8.49 million relative to a pre-tax profit of $27.14 million.

The Company paid no taxes for the period, resulting in a net loss of $8.49 million relative to a profit of $27.14 million. A net loss of $14.27 million was booked for the second quarter, in contrast to a profit of $4.32 million for the corresponding quarter in 2016.

As a result, loss-per-share for the six months amounted to $0.038 compared to an earnings-per-share of $0.122 reported in 2016. For the quarter the loss-per-share totaled $0.064 relative to an EPS of $0.19 in 2016. The 12-month trailing LPS is -$0.11 and the number of shares used in our calculations is 222,709,171 units.

 

Balance Sheet Highlights:

The Company, as at June 30, 2017, recorded Total Assets of $741.57 million, an increase of 8% year over year. The increase was attributed mainly to a 10% growth in ‘Property, Plant and Equipment’ which closed at $488.98 million (2016: $445.11 million).

Total Stockholders’ Equity as at March 31, 2017 was $553.22 million, representing a decrease of 1%. This resulted in a book value of $2.42.

 

 

Disclaimer:

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2017-08-16T21:10:37+00:00