PTL reports 7% increase in year end net profit

Date: July 30, 2019

Paramount Trading (Jamaica) Limited recorded a 14% increase in total revenues to $1.60 billion from $1.40 billion reported in 2018.  This resulted mainly from a $151.94 million increase in the manufacturing segment which closed at $193.74 million.  The chemicals segment, which accounted for 57% of revenue, recorded a 7% increase to close at $908.82 million (2018: $847.38 million). Segment operations are as follows:

  • Chemicals – $908.82 million (2018: $847.38 million), up 7%.
  • Manufacturing – $193.74 million (2018: $179.93 million), up 8%.
  • Lubricants – $288.44 million (2018: $176.64 million), up 63%.
  • Construction & Adhesives – $159.10 million (2018: $151.51 million), up 5%.
  • Transport – $45.55 million (2018: $42.94 million), up 6%.

Direct expenses closed the period at $1.10 billion, an increase of approximately $121.73 million relative to the $972.06 million booked a year ago.  Despite the growth in direct expenses, gross profit grew by approximately 18% to $501.86 million (2018: $426.35 million). For the quarter, gross profit closed at $165.07 million (2018: $125.92 million).

Other operating income amounted $8.03 million for the year, a rise of 40% compared to $5.75 million booked for the previous year’s corresponding period. While, for the quarter, other operating income totalled $4.99 million (2018: $1.55 million).

Administrative expenses climbed 24% to $401.76 million, up from the $323.03 million recorded for 2018. This resulted mainly from an increase in admin expenses to $401.76 million (2018: $323.03 million). Selling and distribution expenses declined to $19.95 million (2018: $29.73 million).

Operating profit closed the year end at $88.19 million versus $79.34 million booked in the same comparable period. While for the quarter, operating profit totalled $37.77 million (2018: $9.81 million).

Finance income amounted to $1.64 million, up 71% when compared to the $959,950 reported for the prior year, while finance costs grew 7% to total $14.20 million (2018: $13.25 million).

Pre-tax profit for the year totalled $75.62 million, 13% more than the $67.04 million reported in fourth quarter of 2018. Taxes were charged for the year in the amount of $12.98 million relative to $8.40 million in 2018. As such, Net profit attributable to shareholders totalled $62.64 million, an increase of 7% (2018: $58.64 million). Net profit attributable to shareholders for the fourth quarter amounted to $17.12 million compared to net loss attributable to shareholders of $7.84 million documented in the prior corresponding quarter.

Earnings per share for the year totalled $0.041 (2018: $0.038), while EPS for the fourth quarter totalled $0.01 versus LPS of $0.01 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 $2.40 on July 30, 2019.

Balance Sheet Highlights:

As at May 31, 2019, the company’s assets totalled $1.58 billion, $350.61 million more than the $1.23 billion quoted a year ago. The main contributor to this growth was the increase in Property Plant and Equipment which closed at $360.29 million relative to $263.60 million a year ago. In addition, Investments contributed to the increase closing at $251.45 million (2018: $57.88 million). Inventories as at May 31, 2019 amounted to $547.91 million, a 10% growth relative to the $500.02 million recorded in 2018.

Shareholder’s equity as at May 31, 2019 stood at $741.37 million (2018: $740.43 million) resulting in a book value per share of $0.481 (2018: $0.480).


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