PTL reports 174% increase in year end net profit

July 28, 2022

Paramount Trading (Jamaica) Limited recorded a 19% increase in total revenues to $1.72 billion from $1.44 billion reported in 2021.  For the quarter, revenues amounted to $482.49 million (2021: $421.75 million).

Direct expenses closed the period at $1.15 billion relative to the $983.20 million booked a year ago. As such, gross profit rose by approximately 24% to $562.41 million (2021: $454.40 million). For the quarter, gross profit closed at $163.20 million (2021: $130.33 million).

Other operating income amounted $75.86 million for the year; a 234% increase when compared to $22.68 million booked for the previous year’s corresponding period. While, for the quarter, other operating income totalled $42.29 million versus other operating income of $3.91 million booked in the previous comparable quarter.

Administrative expenses rose 10% to $391.29 million, up from the $355.14 million recorded for 2021. While, Selling and distribution expenses grew to $17.64 million (2021: $10.55 million).

Operating profit closed the year end at $229.34 million versus $111.40 million booked in the same comparable period. While for the quarter, operating profit totalled $88.87 million (2021: $43.66 million).

Finance income amounted to $3.66 million, down 4% when compared to the $3.80 million reported for the prior year, while finance costs contracted to total $46.70 million (2021: $49.28 million).

Pre-tax profit for the year totalled $186.31 million, 183% more than the $65.92 million reported for the corresponding period in 2021.

Taxes were charged for the year in the amount of $11.74 million relative to $2.28 million in 2021. As such, Net profit attributable to shareholders totalled $174.57 million, an increase of 174% (2021: $63.64 million). Net profit attributable to shareholders for the fourth quarter amounted to $79.62 million compared to net profit attributable to shareholders of $35.89 million documented in the prior corresponding quarter.

Earnings per share for the year totalled $0.113 (2021: $0.041), while EPS for the fourth quarter totalled $0.052 versus EPS of $0.023 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 $1.80 on July 28, 2022, with a corresponding P/E of 15.90 times.

Balance Sheet Highlights:

As at May 31, 2022, the company’s assets totalled $1.93 billion, $273.60 million less than the $1.65 billion quoted a year ago. The main contributor to this growth was the increase in ‘Inventories’ which closed at $670.84 million relative to $412.78 million a year ago. In addition, ‘Cash at bank’ contributed to the growth amounting to $125.55 million, a 38% uptick relative to the $90.93 million recorded in 2021.

Shareholder’s equity as at May 31, 2022 stood at $909.20 million (2021: $796.33 million) resulting in a book value per share of $0.589 (2021: $0.516).


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