Date: July 31, 2018
Paramount Trading (Jamaica) Limited, for the year ended May 31, 2018, recorded a 21% increase in total revenues to $1.39 billion from $1.15 billion reported in 2017. This resulted mainly from a $151.94 million increase in the manufacturing segment which closed at $179.93 million. The chemicals segment, which accounted for 61% of revenue, recorded a 7% decline to close at $847.38 million. Segment operations are as follows:
- Chemicals – $847.38 million, down 7%
- Manufacturing – $179.93 million, up 543%
- Lubricants – $176.64 million, up 144%
- Construction & Adhesives – $151.51 million, up 38%
- Transport – $42.94 million, up 30%
Direct expenses closed the period at $972.05 million, an increase of approximately $170.22 million relative to the $801.82 million booked a year ago. Despite the growth in direct expenses, gross profit grew by approximately 20% to $426.35 million (2017: $354.04 million).
Other operating income amounted $5.74 million for the year, a decline of 51% compared to $11.67 million booked for the previous year’s corresponding period.
Administrative expenses climbed 47% to $323.03 million, up from the $220.28 million recorded for 2017. This resulted mainly from a $52.49 million increase in staff costs to $146.28 million and a $21.4 million increase in depreciation to total $42.32 million. Selling and distribution expenses declined by 15% for the year to close at $29.73 million (2017: $34.78 million).
Finance income amounted to $959,950 down 13% when compared to the $1.11 million reported for the prior year, while finance costs grew 23% to total $13.25 million (2017: $10.74 million).
Pre-tax profit for the year totalled $67.04 million, 34% less than the $101 million reported in fourth quarter of 2017. Taxes were charged for the year in the amount of $8.4 million relative to nil in 2017. As such, Net profit attributable to shareholders totalled $58.64 million, a decline of 42% (2017: $101 million).
Earnings per share for the year totalled $0.038 (2017: $0.065), while LPS for the fourth quarter totalled -$0.01. The number of shares used in our calculations is 1,542,467,080 units.
Balance Sheet Highlights:
As at May 31, 2018, the company’s assets totalled $1.23 billion, $207.89 million more than the $1.02 billion quoted a year ago. The main contributor to this growth was the increase in Property Plant and Equipment which closed at $263.59 million relative to $239.97 million a year ago. Inventories as at May 31, 2018 amounted to $500.02 million, a 36% growth relative to the $367.05 million recorded in 2017.
Shareholder’s equity as at May 31, 2018 stood at $740.42 million (2017: $681.78 million) resulting in a book value per share of $0.48 (2017: $0.44).
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