February 15, 2022

Consolidated Bakeries (Jamaica) Limited (PURITY), for the twelve months ended December 31, 2021 recorded a 9% increase in revenue to $1.07 billion from $993.97 million reported in 2020. For the fourth quarter, the company recorded revenue worth $280.91 million (2020: $223.97 million), representing a 25% increase.

Cost of Sales for the year grew by 8% to $653.04 million (2020: $601.93 million), despite the rise, Gross Profit grew 9% to $426.75 million (2020: $392.04 million). Within the quarter, PURITY recorded Cost of Sales of $166.62 million, up 23% relative to $135.95 million booked at the end of the fourth quarter in 2020. Fourth quarter’s Gross Profit also grew to $114.29 million, up 30% year over year (2020: $88.02 million).

The Company reported Total Expenses of $437.88 million, a 12% increase when compared to the $389.25 million reported in 2020. Of this, Administrative Expenses amounted to $252.28 million, up 17% relative to $215.57 million reported in 2020. Selling Expenses went up by 9% to close at $152.66 million (2020: $139.93 million). Total Expenses for the fourth quarter are up 25% to $126.58 million relative to the $101.47 million reported in 2020.

A rise in Total Expenses translated into an Operating Loss of $11.13 million for the twelve-months period, compared to an operating profit of $2.78 million documented the year prior. For the fourth quarter, PURITY experienced an Operating Loss of $12.29 million relative to an Operating Loss of $13.44 million booked in 2020.

Finance Costs fell by 38% to $11.74 million versus $19.04 million booked twelve months earlier. Interest and other income closed the period at $1.29 million (2020: $5.81 million)

PURITY recorded a Pre-tax loss of $21.59 million compared to a Pre-tax loss of $10.45 million in 2020. Pre-tax loss for the quarter was $14.56 million in 2021 compared to a Pre-tax loss of $17.31 million in the previous corresponding quarter.

No taxes were incurred for the period under review (2020: $3.97 million).

PURTIY experienced a Net Loss of $21.58 million for the twelve months ended December 31, 2021 versus a loss of $14.42 million in 2020. In their fourth quarter, the Company also recorded a net loss of $14.56 million versus a loss of $19.67 million in the corresponding quarter in 2020.

As a result, loss per share (LPS) for the twelve-months amounted to $0.09 compared to a loss-per-share (LPS) of $0.06 reported in 2020. For the quarter, the loss-per-share was $0.06 relative to a LPS of $0.09 in 2020. The number of shares used in our calculations was 222,709,171 units. PURITY stock last traded on February 14, 2022 at $1.17.

Balance Sheet at a glance:

PURITY, as at December 31, 2021, PURITY held Total Assets valued at $1.01 billion, an increase of 1% year over year when compared to $996.40 million in 2020. The increase was attributable to a $17.46 million gain in ‘Inventories’ which closed at $67.36 million (2020: $49.90 million).

The company closed the period with Shareholders’ Equity totaling $678.26 million (2020: $693.51 million). As a result, the company now has a book value per share of $3.05 (2020: $3.11).

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