PTL reports 20% increase in year end net profit

August 03, 2021

Paramount Trading (Jamaica) Limited recorded a 5% decrease in total revenues to $1.44 billion from $1.52 billion reported in 2020.  For the quarter, revenues amounted to $421.75 million (2020: $365.86 million).

Direct expenses closed the period at $983.20 million relative to the $1.05 billion booked a year ago. As such, gross profit fell by approximately 3% to $454.40 million (2020: $468.18 million). For the quarter, gross profit closed at $130.33 million (2020: $125.76 million).

Other operating income amounted $22.68 million for the year; a 9% contraction when compared to $24.94 million booked for the previous year’s corresponding period. While, for the quarter, other operating income totalled $3.91 million versus other operating loss of $14.68 million booked in the previous comparable quarter.

Administrative expenses fell 3% to $355.14 million, down from the $366.88 million recorded for 2020. While Selling and distribution expenses declined to $10.55 million (2020: $18.81 million).

Operating profit closed the year end at $111.40 million versus $107.42 million booked in the same comparable period. While for the quarter, operating profit totalled $43.66 million (2020: $23.47 million).

Finance income amounted to $3.80 million, up 50% when compared to the $2.54 million reported for the prior year, while finance costs grew to total $49.28 million (2020: $47.94 million).

Pre-tax profit for the year totalled $65.92 million, 6% more than the $62.02 million reported in fourth quarter of 2020. Taxes were charged for the year in the amount of $2.28 million relative to $8.99 million in 2020. As such, Net profit attributable to shareholders totalled $63.64 million, an increase of 20% (2020: $53.02 million). Net profit attributable to shareholders for the fourth quarter amounted to $35.89 million compared to net profit attributable to shareholders of $4.24 million documented in the prior corresponding quarter.

Earnings per share for the year totalled $0.041 (2020: $0.034), while EPS for the fourth quarter totalled $0.023 versus EPS of $0.003 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 $1.12 on July 30, 2021, with a corresponding P/E of 27.15 times.

Balance Sheet Highlights:

As at May 31, 2021, the company’s assets totalled $1.65 billion, $211.36 million less than the $1.86 billion quoted a year ago. The main contributor to this contraction was the decrease in ‘Inventories’ which closed at $412.78 million relative to $683.56 million a year ago. In addition, ‘Cash at bank’ contributed to the decline amounting to $90.93 million, a 49% reduction relative to the $178.39 million recorded in 2020.

Shareholder’s equity as at May 31, 2021 stood at $796.33 million (2020: $794.39 million) resulting in a book value per share of $0.516 (2020: $0.515).



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