PTL reports a 25% increase in first quarter net profit

October 15, 2021

Paramount Trading (Jamaica) Limited, for the three months ended August 31, 2021, recorded an increase of 2% in total revenues to $369.32 million from $362.01 million reported in 2020. Paramount noted, “all revenue segments showed improvement except for the lubricant division which declined year over year.”

Direct expenses closed the period at $258.22 million, a 5% increase relative to the $245.67 million booked a year ago.  Gross profit for the quarter fell approximately 5% to $111.10 million (2020: $116.33 million).

Other operating income amounted $13.14 million for the three months ended August 31, 2021, an improvement of $8.08 million compared to $5.06 million booked for the previous year’s corresponding period.

Administrative expenses increased less than 1% to $89.82 million, up from the $89.34 million recorded for 2020. PTL’s selling and distribution expenses rose 61% to close at $2.79 million (2020: $1.73 million). As such, operating profit amounted to $31.63 million compared to $30.32 million for the same quarter of the prior financial year.

Interest income amounted to $890,319, up 713% when compared to the $109,498 million reported for the prior year, while finance costs fell 17% to total $10.89 million (2020: $13.08 million). Management attributed the decrease in finance cost to a, “favourable outcome due to a loan restricting process that was completed in the fourth quarter of the prior financial year.”

Pre-tax profit for the quarter totalled $21.63 million, an improvement of 25% versus the $17.35 million reported in prior year’s corresponding quarter. Taxation for the quarter amounted to $2.70 million relative to $2.17 million in 2020. As such, Net profit totalled $18.93 million (2020: $15.18 million), a rise of 25%.

Earnings per share for the three months totalled $0.012 (2020: $0.010). The trailing twelve months earnings per share is $0.044. 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 $1.09 on October 15, 2021, with a corresponding PE of 24.95 times.

Balance Sheet Highlights:

As at August 31, 2021, the company’s assets totalled $1.72 billion, $670,144 less than the $1.72 billion quoted a year ago. ‘Inventories’ declined by $54.45 million to close at $480.46 million relative to $534.91 million a year ago. While, ‘Receivables’ increased to $344.64 million (2020: $292.08 million).

Shareholder’s equity as at August 31, 2021 stood at $815.25 million (2020: $809.57 million) resulting in a book value per share of $0.53 (2020: $0.52).



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