January 14, 2025
Paramount Trading Limited (PTL)
Unaudited financials for the six months ended November 30, 2024:
Paramount Trading Limited (PTL) reported a 6% decrease in revenue, totalling $788.52 million for the six months ended November 30, 2024, compared to $836.47 million in the corresponding period last year. Revenue for the second quarter decreased by 3%, closing at $399.41 million compared to $410.42 million for the comparable quarter of 2023.
Direct expenses amounted to $525.91 million (2023: $502.61 million), representing a 5% year-over-year increase. Consequently, gross profit decreased by 21% to $262.62 million, compared to $333.86 million for the six months ended November 30, 2023. The company booked a gross profit of $129.21 million for the second quarter versus $137.21 million reported for the similar quarter of 2023.
Other operating expenses increased by 180%, closing at $23.06 million (compared to other operating income of $28.69 million for 2023), while administrative expenses increased by 4%, from $229.17 million in 2023 to $238.87 million in the period under review. As a result, total expenses for the six months ended November 30, 2024, amounted to $250.37 million, a 5% increase relative to $239.36 million reported in 2023.
Operating loss for the six months ended November 30, 2024, amounted to $10.81 million relative to the operating profit of $123.19 million reported in 2023. Operating profit for the second quarter amounted to $7.35 million (2023: $44.66 million). Net finance cost totalled $41.54 million, a 65% increase from the corresponding period last year (2023: $25.23 million).
Pre-tax loss for the six months ended November 30, 2024, amounted to $52.35 million relative to the pre-tax profit of $97.96 million reported in 2023. Pre-tax loss for the second quarter amounted to $14.40 million (2023: pre-tax profit of $33.12 million).
Net loss for the six months amounted to $52.35 million from the net profit of $78.25 million reported in 2023. For the second quarter, net loss was $14.40 million (2023: net profit of $24.84 million).
Consequently, loss per share for the six months amounted to $0.03 (2023: EPS: $0.05), while loss per share for the quarter totalled $0.01 (2023: EPS: $0.02). The twelve-month trailing LPS was $0.09, and the number of shares used in these calculations was 1,542,467,080.
Notably, PTL’s stock price closed the trading period on January 13, 2025, at $1.15.
Balance Sheet Highlights
The company’s assets totalled $2.15 billion (2023: $2.01 billion). This increase was attributable to inventories, which amounted to $764.00 million (2023: $541.32 million). Additionally, property, plant, and equipment also contributed to the increase, equating to $631.59 million (2023: $554.12 million).
Shareholders’ equity was $987.17 million (2023: $1.14 billion), representing a book value per share of $0.64 (2023: $0.74).
Disclaimer:
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.