PURITY Reports $20.11 Million in Nine Months Net Profit

November 05, 2018

Consolidated Bakeries (Jamaica) Limited (PURITY), for the nine months ended September 30, 2018, recorded a 11% increase in revenue $716.45 million from $643.07 million reported for the corresponding period in 2017. For the third quarter, the company recorded a revenue of $223.92 million (2017: $195.61 million), representing a 14% growth.

Cost of sales for the period rose by 4% to close at $446.75 million (2017: $430.79 million), leading to a gross profit of $269.71 million (2017: $212.28 million). Within the quarter, PURITY recorded cost of sales of $140.86 million, up 5% relative to $134.58 million booked at the end of the third quarter for 2017. As such, third quarter’s gross profit totaled $83.05 million, up 36% year over year (2017: $61.03 million).

Other Income declined 8% to $3.12 million relative to $3.38 million booked for the comparable period in 2017. For the quarter, Other Income closed at $1.47 million (2017: $1.06 million), climbing by 39%.

The company reported Total Expenses of $240.29 million, a 2% rise when compared to the $235.14 million reported in 2017. Of this, Administrative Expenses amounted to $136.30 million, up 3% relative to $132.19 million reported in 2017. Selling Expenses slightly went up by 1% to close at $103.99 million (2017: $102.95 million). Total Expenses for the third quarter amounted to $81.34 million, up by 8% year over year from $75.46 million booked in 2017.

This resulted in an Operating Profit of $32.54 million for the nine-months period, compared to an Operating Loss of $19.49 million documented for the comparable period in 2017. For the third quarter, Operating Profit amounted to $3.18 million relative to an Operating Loss of $13.37 million.

Finance Costs increased by 183% to close at $9.55 million versus $3.37 million booked twelve months earlier.

Consequently, PURITY recorded Pre-tax Profit of $22.99 million compared to a Pre-tax Loss of $22.86 million. Pre-tax Profit for the quarter closed at $386,945 compared to a Pre-tax Loss of $14.20 million in the previous corresponding quarter.

The Company incurred taxes of $2.87 million for the period under review, resulting in a Net Profit of $20.11 million versus a loss of $22.86 million. For the third quarter, the Company booked a taxes of $48,368 resulting in a Net Profit of $338,577 in contrast to a loss of $14.20 million for the corresponding quarter in 2017.

As a result, earnings per share (EPS) for the nine-months amounted to $0.09 compared to a loss-per-share (LPS) of $0.10 reported in 2017. For the quarter, the earnings-per-share totaled $0.002 relative to a LPS of $0.06 in 2017. The twelve-months trailing EPS is $0.013, and the number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on November 02, 2018 at $2.00.

Balance Sheet Highlights:

PURITY, as at September 30, 2018, recorded Total Assets of $955.53 million, an increase of 34% year over year. The increase was attributed mainly to a 46% growth in ‘Property, Plant and Equipment’ and ‘Inventories’ which closed at $712.72 million (2017: $487.53 million) and $42.71 million (2017: $29.27 million), respectively.

The company closed the period with Shareholders’ Equity in the amount of $739.16 million, representing an increase of 40%. The increase was due to a growth in revaluation reserves from $330.85 million to $537.34 million. The company now has a book value per share of $3.32 (2017: $2.36).


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