PTL reports first quarter net profit of $83.91 million

October 14, 2022

Paramount Trading (Jamaica) Limited, for the three months ended August 31, 2022, recorded an increase of 61% in total revenues to $595.17 million from $369.32 million reported in 2021. Paramount noted, “This surpasses by 28 percent the previous highest quarter (Q3:21/22) in the Company’s history. During the period, revenue growth strategies employed by the company resulted in improvement in our revenue, in three (3) of the five (5) segments in both the Manufacturing and Distribution divisions. The non-growth segments, lubricant and technical grade were impacted by supply chain management challenges, which are being resolved in the second quarter.”

Direct expenses closed the period at $391.84 million, a 52% increase relative to the $258.22 million booked a year ago.  Gross profit for the quarter rose approximately 83% to $203.33 million (2021: $111.10 million).

Other operating income amounted $29.37 million for the three months ended August 31, 2022, an improvement of $16.23 million compared to the $13.14 million booked for the previous year’s corresponding period.

Administrative expenses grew by 36% to $122.58 million, up from the $89.82 million recorded for 2021. PTL’s selling and distribution expenses fell 7% to close at $2.60 million (2021: $2.79 million). Operating profit amounted to $107.52 million compared to $31.63 million for the same quarter of the prior financial year.

Interest income amounted to $919,380 up 3% when compared to the $890,319 reported for the prior year, while finance costs rose 2% to total $11.08 million (2021: $10.89 million).

Pre-tax profit for the quarter totalled $97.36 million, an improvement of 350% versus the $21.63 million reported in prior year’s corresponding quarter. Taxation for the quarter amounted to $13.45 million relative to $2.70 million in 2021. As such, Net profit totalled $83.91 million (2021: $18.93 million), a rise of 343%.

Earnings per share for the three months totalled $0.054 (2021: $0.012). The trailing twelve months earnings per share is $0.155. 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 $1.53 on October 13, 2022, with a corresponding PE of 9.85 times.


Balance Sheet Highlights:

As at August 31, 2022, the company’s assets totalled $2.06 billion, $340.88 million more than the $1.72 billion quoted a year ago. ‘Inventories’ rose by $333.64 million to close at $814.10 million relative to the $480.46 million reported a year ago. While ‘Receivables’ increased to $403.19 million (2021: $344.64 million).

Shareholder’s equity as at August 31, 2022 stood at $993.11 million (2021: $815.25 million) resulting in a book value per share of $0.64 (2021: $0.53).



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.