Date: November 14, 2019
Consolidated Bakeries (Jamaica) Limited (PURITY) recorded a 10% increase in revenue to $786.72 million from $716.45 million reported for the corresponding period in 2018. For the third quarter, the company recorded a revenue of $238.05 million (2018: $223.92 million), representing a 6% growth.
Cost of sales for the period rose by 11% to close at $484.67 million (2018: $435.08 million), leading to a gross profit of $302.04 million (2018: $281.37 million). Within the quarter, PURITY recorded cost of sales of $145.39 million, up 6% relative to $136.94 million booked at the end of the third quarter for 2018. As such, third quarter’s gross profit totaled $92.66 million, up 7% year over year (2018: $86.98 million).
The Company reported total expenses of $282.02 million, a 12% rise when compared to the $251.95 million reported in 2018. Of this, administrative expenses amounted to $145.54 million, up 10% relative to $132.34 million reported in 2018. Selling Expenses went up by 17% to close at $113.16 million (2018: $96.94 million). Total Expenses for the third quarter amounted to $92.17 million, up by 8% year over year from $85.27 million booked in 2018.
This resulted in an operating profit of $20.03 million for the nine-months period, compared to an operating profit of $29.42 million documented for the comparable period in 2018. For the third quarter, Operating Profit amounted to $493,382 relative to an Operating profit of $1.71 million booked in 2018.
Finance Cost fell by 14% to close at $8.20 million versus $9.55 million booked twelve months earlier. Interest and other income closed the period at $3.66 million, 17% above the $3.12 million recorded for the nine months ended September 30, 2018.
Consequently, PURITY recorded Pre-tax Profit of $15.48 million compared to a Pre-tax profit of $22.99 million in 2018. Pre-tax loss for the quarter closed at $94,379 in 2019 compared to a Pre-tax profit of $386,945 in the previous corresponding quarter.
The Company incurred taxes of $1.94 million for the period under review, resulting in a Net Profit of $13.55 million versus a profit of $20.11 million. For the third quarter, the Company booked a net loss of $82,582 in contrast to a profit of $338,577 for the corresponding quarter in 2018.
As a result, earnings per share (EPS) for the nine-months amounted to $0.06 compared to a earnings-per-share (EPS) of $0.09 reported in 2018. For the quarter, the loss-per-share totaled $0.0004 relative to a EPS of $0.002 in 2018. The twelve-months trailing EPS is $0.03. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on November 14, 2019 at $1.78.
Balance Sheet Highlights:
PURITY, as at September 30, 2019, recorded Total Assets of $1.01 billion, an increase of 6% year over year. The increase was attributed mainly to a 4% growth in ‘Property, Plant and Equipment’ and a 24% growth in ‘Inventories’ which closed at $743.40 million (2018: $712.72 million) and $53.09 million (2018: $42.71 million), respectively. ‘Cash and Cash Equivalents’ and ‘Accounts Receivables’ also contributed to the growth amounting to $66.57 million (2018: $58.43 million) and $95.37 million (2018: $87.13 million), respectively.
The company closed the period with Shareholders’ Equity in the amount of $740.63 million (2018: $739.16 million). As a result, the company now has a book value per share of $3.33 (2018: $3.32).
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