November 14, 2023
The Consolidated Bakeries (Jamaica) Limited (PURITY) for the nine months ended September 30, 2023 reported a 12% increase in Revenue totaling $1.17 billion compared to $1.04 billion in the corresponding period last year. Revenue for the third quarter rose 7% to close at $344.46 million compared to $322.81 million for the comparable quarter of 2022.
Cost of Sales amounted to $725.39 million (2022: 637.07 million), this represents a increase of 14% year over year. Consequently, gross profit increased by 10% to $445.40 million compared to $405.75 million for the nine months ended September 30, 2022. The Company booked gross profit of $134.14 million for the third quarter versus $116.43 million reported for the similar quarter of 2022.
Selling Expense climbed 22% to close at $185.28 million (2022: $152.46 million), while Admin Exp increased by 2% from $200.41 million in 2022 to $203.49 million for the period under review. As a result, total expenses for the nine months ended September 30, 2023 amounted to $418.41 million, a 10% uptick relative to $379.01 million reported in 2022.
Operating Profit for the nine months ended September 30, 2023, amounted to $26.99 million, a 1% increase relative to $26.75 million reported in 2022. Operating Loss for the third quarter amounted to $8.43 million (2022: $10.91 million). Finance Cost year to date totalled $13.68 million (2022: $13.03 million), a 5% increase from the corresponding period last year.
Pre-tax profit for the nine months ended September 30, 2023, amounted to $15.35 million, 1% less relative to $15.43 million reported in 2022. Pre-tax loss for the third quarter amounted to $11.99 million (2022: $14.49 million).
There was no taxation for the nine months ended September 30, 2023. Net Profit for the nine months amounted to $12.33 million, a 20% contraction from the $15.43 million reported in 2022. For the third quarter, Net Loss was $12.43 million (2022 Net loss: $14.49 million).
Consequently, Earnings Per Share for the nine months amounted to $0.06 (2022: EPS: $0.07), while Loss Per Share for the quarter totaled $0.06 (2022: LPS: $0.07). The twelve month trailing EPS was $0.05 and the number of shares used in these calculations was 222,709,171.
Notably, PURITY’s stock price closed the trading period on November 13, 2023 at a price of $2.12 with a corresponding P/E ratio of 43.79x.
Balance Sheet Highlights
PURITY, as at September 30, 2023, recorded Total Assets of $1.12 billion, an increase of 5% year over year when compared to $1.07 billion booked last year. The increase was attributed mainly to a 26% increase in ‘Accounts Receivables’ which closed at $135.72 million (2022: $108.08 million).
Shareholder’s equity was $709.65 million (2022: $698.52 million), representing a book value per share of $3.19 (2022: $3.14).
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