PTL reports 242% increase in nine months net profit

April 19, 2022

Paramount Trading (Jamaica) Limited recorded a 22% increase in total revenues to $1.23 billion from $1.02 billion reported in 2021. For the quarter, revenues rose 34% to close at $463.96 million (2021: $347.24 million). PTL stated that, “The reduction in curfew hours, elimination of ‘no movement days’ and the re-opening of schools during the quarter contributed to a general improvement in the economy. During this period, revenue growth strategies employed by the company resulted in improvement in our revenue, led primarily by our Food Grade division.”

Direct expenses closed the period at $835.24 million, a 21% increase relative to the $691.79 million booked a year ago. Notwithstanding, gross profit rose by approximately 23% to $399.21 million (2021: $324.07 million). For the quarter, gross profit closed at $158.19 million relative to $107.71 million reported in the prior corresponding quarter.

Other operating income amounted to $33.57 million for the nine months period compared to $18.78 million booked for the previous year’s corresponding period. For the third quarter, other operating income closed at $10.90 million (2021: $6.03 million).

Administrative expenses grew by 6% to $282.71 million, up from the $266.76 million recorded for 2021. Selling and distribution expenses rose by 15% for the nine months to close at $9.60 million (2021: $8.34 million). As such, operating profit amounted to $140.47 million compared to $67.74 million for the same period for the prior comparable financial year. For the quarter, operating profit surged by 208% to close at $63.69 million (2021: $20.67 million).

Interest income amounted to $2.75 million (2021: $1.24 million), while finance cost increased to total $34.72 million (2021: $37.28 million). For the quarter, interest income and finance cost closed at $917,593 (2021: $54,878) and $10.38 million (2021: $11.53 million), respectively.

Pre-tax profit for the period totaled $108.51 million, 242% more than the $31.71 million reported in the prior corresponding period. Taxes were charged for the period amounting to $13.56 million relative to $3.96 million in 2021. As such, net profit closed at $94.95 million, a 242% increase (2021: $27.74 million). For the quarter, net profit amounted to $47.44 million (2021: $8.05 million), a 489% increase.

Earnings per share for the nine months amounted to $0.062 (2021: $0.018). For the quarter, earnings per share closed at $0.031 (2021: $0.005). The trailing twelve months earnings per share equaled $0.08. 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 $1.76 on April 14, 2022, with a corresponding P/E ratio of 20.75 times.

Balance Sheet Highlights:

As at February 28, 2022, the Company’s total assets totaled $1.79 billion, 11% more than the $1.61 billion quoted a year ago. The main contributors to this were the growth in ‘Inventories’ and ‘Receivables’ which closed at $504.97 million (2021: $440.03 million) and $380.15 million (2021: $293.15 million), respectively.

Shareholders’ Equity as at February 28, 2022 stood at $829.57 million (2021: $760.43 million), resulting in a book value per share of $0.54 (2021: $0.49).


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.