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.
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