PTL reports 15% decline in year end net profit

July 31,  2020

Paramount Trading (Jamaica) Limited recorded a 5% decrease in total revenues to $1.52 billion from $1.60 billion reported in 2019.  For the quarter, revenues amounted to $365.86 million (2019: $ 406.08 million).

Direct expenses closed the period at $1.05 billion relative to the $1.10 billion booked a year ago.  As such, gross profit fell by approximately 7% to $468.18 million (2019: $501.86 million). For the quarter, gross profit closed at $125.76 million (2019: $126.35 million).

Other operating income amounted $24.94 million for the year, a rise of 47% compared to $16.99 million booked for the previous year’s corresponding period. While, for the quarter, other operating loss totalled $14.68 million versus other operating income of $3.69 million booked in the previous comparable quarter.

Administrative expenses fell 9% to $366.88 million, down from the $401.76 million recorded for 2019. While, Selling and distribution expenses declined to $18.81 million (2019: $19.95 million).

Operating profit closed the year end at $107.42 million versus $97.15 million booked in the same comparable period. While for the quarter, operating profit totalled $23.47 million (2019: $32.54 million).

Finance income amounted to $2.54 million, up 55% when compared to the $1.64 million reported for the prior year, while finance costs grew to total $47.94 million (2019: $23.16 million).

Pre-tax profit for the year totalled $62.02 million, 18% less than the $75.62 million reported in fourth quarter of 2019. Taxes were charged for the year in the amount of $8.99 million relative to $12.98 million in 2019. As such, Net profit attributable to shareholders totalled $53.02 million, a decrease of 15% (2018: $62.64 million). Net profit attributable to shareholders for the fourth quarter amounted to $4.24 million compared to net loss attributable to shareholders of $17.12 million documented in the prior corresponding quarter.

Earnings per share for the year totalled $0.034 (2019: $0.041), while EPS for the fourth quarter totalled $0.003 versus EPS of $0.01 booked in the similar quarter last year. The number of shares used in our calculations is 1,542,467,080 units. PTL closed the trading period at $1.77 on July 30, 2020.

Balance Sheet Highlights:

As at May 31, 2020, the company’s assets totalled $1.86 billion, $282.99 million more than the $1.58 billion quoted a year ago. The main contributor to this growth was the increase in Property Plant and Equipment which closed at $609.10 million relative to $360.29 million a year ago. In addition ‘Inventories’ contributed to the increase amounting to $683.56 million, a 25% growth relative to the $547.91 million recorded in 2019.

Shareholder’s equity as at May 31, 2020 stood at $794.39 million (2019: $741.37 million) resulting in a book value per share of $0.515 (2019: $0.481).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

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