Purity recorded net loss of $40.10 million for financial year 2017

April 3, 2018

Consolidated Bakeries (Jamaica) Limited (PURITY) for the year ended December 31, 2017 recorded a 2.01% decline in revenue to $862.61 million from $880.27 million reported for the corresponding period in 2016. For the fourth quarter, the Company recorded revenue of $219.54 million (2016: $199.64 million), representing a 10% improvement year over year.

Cost of sales for the period decreased 1.45% to close at $563.73 million (2016: $572.01 million), leading to a gross profit of $298.87 million (2016: $308.27 million). Within the quarter PURITY recorded cost of sales of $132.94 million, down 3.2% relative to $137.35 million booked at the end of the Fourth quarter for 2016.  As such, fourth quarter gross profits totaled $86.09 million, up 39% year over year (2016: $62.29 million).

Other income fell 90.53% to $874,770 relative to $9.24 million booked for the comparable period in 2016.

Purity’s total expenses for the year amounted to $312.97million, an increase of 5.89% versus the $295.56 million reported in 2016. Of this, administrative expenses closed at $155.17 million, down 3.37% relative to the $160.59 million reported in 2016, while, selling expense was up 16.91% to close at $157.80 million (2016: $134.97 million). This resulted in an operating loss of $13.23 million for the reported for the year, compared to an operating profit of $21.95 million documented for the prior year.

Finance costs increased 62.48% to close at $18.88 million relative to $11.62 million in 2016. The company reported deferred tax payments of $7.99 million for the period.  Consequently, PURITY recorded net loss of $40.10 million in contrast to a net profit of $10.33 million the prior year. A net loss of $17.24 million was booked for the fourth quarter, compared to a loss of $19.67 million for the corresponding quarter in 2016.

As a result, loss per share (LSP) for the year ended December 2017 amounted to $0.18 compared to an earnings per share (EPS) of $0.05 reported in 2016. The earnings per share for the quarter totaled $0.077 relative to an LPS of $0.088 in 2016. The number of shares used in our calculations is 222,709,171 units. Purity’s stock price closed the trading period on Thursday March 29, 2018 at a price of $2.00.

Total Comprehensive income of $168.99 million was recorded for the period relative to comprehensive income of $13.92 million recorded the prior year.

Balance Sheet Highlights:

The Company, as at December 31, 2017, reported total assets of $992.14 million (2016: $731.40 million), an increase of 26% year over year. The increase was attributed mainly to a 39% growth in ‘Property Plant and Equipment’ which closed at $688.41 million (2016: $494.89 million).

Total Stockholders’ Equity as at December 31, 2017 was $716.40 million (2016: $547.41 million), representing an increase of 31%. This resulted in a book value of $3.22 (2016: $2.46).

 

 

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.

 

 

2018-04-03T16:46:22+00:00