PTL reports 213% increase in six-month net profit

January 13, 2023


Paramount Trading (Jamaica) Limited recorded a 55% increase in total revenues to $1.20 billion from $770.49 million reported in 2021. For the quarter, revenues rose 50% to close at $600.99 million (2021: $401.18 million). PTL stated that, “During the period, revenue growth strategies employed by the Company resulted in an improvement in our revenues, led primarily by our construction, food and technical grades manufacturing and distribution divisions.”

Direct expenses closed the period at $788.19 million, a 49% increase relative to the $529.47 million booked a year ago. Notwithstanding, gross profit rose by approximately 69% to $407.97 million (2021: $241.02 million). For the quarter, gross profit closed at $204.64 million relative to $129.92 million reported in the prior corresponding quarter.

Other operating income amounted to $26.62 million for the six-month period compared to $22.67 million booked for the previous year’s corresponding period. For the third quarter, other operating losses closed at $2.75 million relative to an operating income of $9.54 million for the same quarter in 2021.

Administrative expenses grew by 26% to $228.58 million, up from the $181.30 million recorded for 2021. Selling and distribution expenses rose by 141% year to date to close at $13.51 million (2021: $5.60 million). As such, operating profit amounted to $192.49 million compared to $76.79 million for the same period for the prior comparable financial year. For the quarter, operating profit jumped by 88% to close at $84.97 million (2021: $45.16 million). Management noted, “we continue to reinforce our ongoing cost containment strategies.”

Interest income amounted to $1.54 million (2021: $1.84 million), while finance cost decreased to total $22.65 million (2021: $24.33 million). For the quarter, interest income and finance cost closed at $617,700 (2021: $945,947) and $11.57 million (2021: $13.44 million), respectively.

Pre-tax profit for the period totalled $171.38 million, 216% more than the $54.29 million reported in the prior corresponding period. Taxes were charged for the period amounting to $22.70 million relative to $6.79 million in 2021. As such, net profit closed at $148.68 million, a 213% increase (2021: $47.50 million). For the quarter, net profit amounted to $64.77 million (2021: $28.58 million), a 127% increase.

Earnings per share for the six months amounted to $0.10 (2021: $0.03). For the quarter, earnings per share closed at $0.042 (2021: $0.019). The trailing twelve months earnings per share equaled $0.18. The number of shares used in our calculations is 1,542,467,080 units. PTL stock price closed the trading period at a price of $1.99 on January 13, 2023, with a corresponding P/E ratio of 11.13 times.

Balance Sheet Highlights:

As at November 30, 2022, the Company’s total assets closed at $1.90 billion, 8% more than the $1.75 billion quoted a year ago. The main contributors to this were the growth in ‘Inventories’ and ‘Receivables’ which closed at $679.08 million (2021: $467.56 million) and $437.24 million (2021: $346.37 million), respectively.

Shareholders’ Equity stood at $1.06 billion (2021: $843.83 million), resulting in a book value per share of $0.69 (2021: $0.55).


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.