PURITY reports 6% increase in three months net profit

May 18, 2021

Consolidated Bakeries (Jamaica) Limited (PURITY) for the first quarter ended March 31, 2021 recorded a 3% decline in revenues to $290.96 million from $299.05 million reported for the corresponding period in 2020.

Cost of sales for the period fell by 4% to close at $175.59 million (2020: $182.38 million), leading to a gross profit of $115.38 million (2020: $116.67 million) for the three months ended March 31, 2021.

The Company reported total expenses of $102.53 million, a 1% decline when compared to the $104.04 million reported in 2020. Of this, administrative expenses amounted to $58.05 million, up 5% relative to $55.25 million reported in 2020. Selling expenses contracted by 11% to close at $36.32 million (2020: $40.92 million), whereas depreciation closed at $8.16 million (2020: $7.86 million).

This resulted in an operating profit of $12.84 million for the three months period compared to an operating profit of $12.63 million documented for the comparable period in 2020.

Interest and other income closed at $2,022 versus $6,146 reported in the previous corresponding period. While finance cost declined by 8% to close at $3.84 million compared to $4.17 million booked twelve months earlier.

Consequently, PURITY recorded a 6% increase in pre-tax profit to $9.01 million when compared to the pre-tax profit of $8.47 million booked the same period last year.

No taxes were incurred for the period under review (2020: nil), resulting in a net profit of $9.01 million versus profit of $8.47 million booked twelve months earlier.

Total comprehensive income amounted to $9.36 million (2020: $8.05 million) for the three months ended March 31, 2021.

As a result, earnings per share (EPS) for three months amounted to $0.040 compared to earnings per share (EPS) of $0.038 reported in 2020. The trailing twelve-month LPS is $0.06. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on May 17, 2021 at $1.46.


Balance Sheet at a glance:

PURITY, as at March 31, 2021, recorded total assets of $1.05 billion, a marginal increase of 1% year over year (2020: $1.04 billion). This increase was attributed mainly to ‘Account Receivable’ which closed at $135.62 million (2020: $120.58 million) representing a 12% increase. Additionally, ‘Cash and Cash Equivalents’ went up 12% to end at $87.45 million (2020:$76.25 million).

The Company closed the period with Shareholders’ Equity totalling $702.87 million (2020: $714.35 million), which resulted in a book value per share of $3.16 (2020: $3.21).


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