Date: January 12, 2018
Paramount Trading (Jamaica) Limited (PTL), for the quarter ended November 30, 2017 recorded a 27% increase in total revenues to $687.18 million from $539.13 million reported in 2016. PTL indicated, “our lubricants business line produced strong sales performance during this quarter when compared to last year growing by $28.9 million on a quarterly basis and $41.6 million year to date. Technical Grade product sales grew by $47 million on a quarterly basis and by $83 million year on year.” Additionally, management noted, “we expect this trend to continue into the last 2 quarters.” Second quarter revenue posted a 24% improvement to close at $356.29 million compared to $286.39 million book in 2016.
Direct expenses closed the period at $486.72 million, an increase of approximately 31% relative to the $486.72 million booked a year ago. Despite the growth in direct expenses, gross profit rose by approximately 19% to $200.45 million (2016: $168.72 million). Gross profit for the second quarter totalled $99.08 million, $13.02 million more than the $86.06 million reported in 2016.
Other operating income amounted $2.56 million for the first six months, a decline of 70% compared to $8.46 million booked for the previous year’s corresponding period.
Administrative expenses advanced 19% to $135.64 million, up from the $114.05 million recorded for the six months period 2016. Selling and distribution expenses also increased to close the quarter at $8.78 million (2016: $5.25 million). As such, operating profit for the period amounted to $58.59 million compared to $57.88 million in 2016.
PTL reported a net finance gain of $2.21 million relative to a cost of $4.07 million booked for the prior year’s corresponding period.
Consequently, pre-tax profit for the six months totalled $57.61 million, 12% more than the $51.64 million reported in 2016. No taxes were charged for the year due to income tax holiday as a result of listing on the Junior Market of the Jamaica Stock Exchange. As such, Net Profit Attributable to Shareholders totalled $57.61 million (2016: $51.64 million). Net profit for the quarter totalled $23.71 million relative to $36.70 million booked in 2016.
Earnings per share for the quarter totalled $0.015 (2016:$0.024), while earnings per share for the six month period amounted to $0.0374 versus $0.034 booked for the comparable period of 2016. The trailing twelve months earnings per share is $0.069. The number of shares used in our calculations is 1,542,467,080 units.
According to PTL, “the outlook for the rest of the financial year is positive as we look to revenue growth from the lubricant and bleach plants.”
Balance Sheet Highlights:
As at November 30, 2017, the company’s assets totalled $1.05 billion, $238.54 million more than the $815.59 million quoted a year ago. The main contributor to this growth was the increase in Property, Plant and Equipment which closed at $258.22 million relative to $170.15 million a year ago. Receivables as at November 30, 2017 amounted to $321.28 million, a 35% growth relative to the $237.89 million recorded in 2016.
Shareholder’s equity as at November 30, 2017 stood at $739.39 million (2016: $595.75 million) resulting in a book value per share of $0.48 (2016: $0.41).
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.