Date: May 16, 2019
Consolidated Bakeries (Jamaica) Limited (PURITY) recorded a slight increase in revenues to $273.63 million from $271.04 million reported for the corresponding period in 2018.
Cost of sales for the period rose by 2% to close at $161.34 million (2018: $158.10 million), leading to a gross profit of $112.29 million (2018: $112.95 million).
The Company reported total expenses of $94.83 million, a 9% rise when compared to the $87.16 million reported in 2018. Of this, Administrative expenses amounted to $49.57 million, up 3% relative to $48.18 million reported in 2018. Selling expenses went up by 20% to close at $37.79 million (2018: $31.54 million), whereas depreciation closed at $7.48 million (2018: $7.44 million).
This resulted in an operating profit of $17.46 million for the three months period compared to an operating profit of $25.78 million documented for the comparable period in 2018.
Interest and other income closed at $831,254 versus $1.05 million reported in the previous corresponding period. While, finance cost fell by 14% to close at $2.77 million compared to $3.21 million booked twelve months earlier.
Consequently, PURITY recorded pretax profit of $15.52 million compared to pretax profit of $23.62 million in the same period last year.
The Company incurred taxes of $1.94 million (2018: $2.95 million) for the period under review, resulting in net profit of $13.58 million versus profit of $20.67 million booked twelve months earlier.
As a result, earnings per share (EPS) for three months amounted to $0.06 compared to an earnings per share (EPS) of $0.09 reported in 2018. The trailing twelve-month EPS is $0.03. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on May 16, 2019 at $1.80.
Balance Sheet Highlights:
PURITY, as at March 31, 2019, recorded total assets of $1.03 billion, an increase of 6% year over year (2018: $963.30 million). This increase was attributed mainly to ‘Inventories’ and ‘Property, Plant and Equipment’ which closed at $57.14 million (2018: $35.11 million) and $726.24 million (2018: $685.50 million), respectively.
The Company closed the period with Shareholders’ Equity totalling $733.27 million (2018: $735.40 million), which resulted in a book value per share of $3.29 (2018: $3.30).
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.
