June 25, 2020
Consolidated Bakeries (Jamaica) Limited (PURITY) for the first quarter ended March 31, 2020 recorded 9% increase in revenues to $299.05 million from $273.63 million reported for the corresponding period in 2019.
Cost of sales for the period rose by 13% to close at $182.38 million (2019: $162.18 million), leading to a gross profit of $116.67 million (2019: $111.44 million) for the three months ended March 31, 2020.
The Company reported total expenses of $104.04 million, a 10% rise when compared to the $94.83 million reported in 2019. Of this, administrative expenses amounted to $55.25 million, up 11% relative to $49.69 million reported in 2019. Selling expenses went up by 8% to close at $40.92 million (2019: $37.79 million), whereas depreciation closed at $7.86 million (2019: $7.48 million).
This resulted in an operating profit of $12.63 million for the three months period compared to an operating profit of $16.48 million documented for the comparable period in 2019.
Interest and other income closed at $6,146 versus $831,254 reported in the previous corresponding period. While, finance cost went by 50% to close at $4.17 million compared to $2.77 million booked twelve months earlier.
Consequently, PURITY recorded a 45% reduction in pretax profit to $8.47 million when compare to pretax profit of $14.54 million booked the same period last year.
No taxes were incurred for the period under review (2019: nil), resulting in a net profit of $8.47 million versus profit of $14.54 million booked twelve months earlier.
Total comprehensive income amounted to $8.05 million (2019: $13.58 million) for the three months ended March 31, 2020.
As a result, earnings per share (EPS) for three months amounted to $0.04 compared to earnings per share (EPS) of $0.07 reported in 2019. The trailing twelve-month LPS is $0.08. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on June 25, 2020 at $1.70.
Balance Sheet Highlights:
PURITY, as at March 31, 2020, recorded total assets of $1.04 billion, a slight increase of 1% year over year (2019: $1.03 billion). This increase was attributed mainly to ‘Plant, Property and Equipment’ which closed at $767.16 million (2019: $726.24 million) and went up by $40.92 million or 6% year over year. This was partly tempered by a 47% decrease in ‘Investment’ to $23.30 million (2019: $43.81 million) when compared to the corresponding period last year.
The Company closed the period with Shareholders’ Equity totalling $714.35 million (2019: $733.27 million), which resulted in a book value per share of $3.21 (2019: $3.29).
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