PURITY reports a 76% decline in net profits for the first quarter of 2017

For the first quarter of the 2017 financial year, Consolidated Bakeries (Jamaica) Limited (PURITY) recorded a Total Revenue of $227.91 million (2016: $260.56 million), representing a 13% decline.

Cost of Sales for the quarter amounted to $145.52 million, down 11% relative to $164.20 million booked at the end of quarter one 2016. As such, Gross Profits totaled $82.39 million, down 14% year over year (2016: $96.35 million).

The company reported Total Expenses of $76.13 million, an increase of 4% when compared to the $73.06 million reported in 2016. Administrative Expenses amounted $42.75 million ,up 3% relative to the $41.57 million reported in 2016, while, Selling Expense was up 6% to close at $33.38 million (2016: $31.49 million).

This resulted in an Operating Profit of $7.5 million, a decline of 69% on the prior period’s $24.35 million.

Pre-tax Profits decreased by 76% to $5.78 million (2016: $22.82 million). This is attributed to a decline in Operating Profit.

The Company paid no taxes for the quarter. As a result, earnings-per-share closed at $0.03 (2016: $0.10). The 12-month trailing LPS is -$0.0.3 and the number of shares used in our calculations is 222,709,171 units.

Balance Sheet Highlights:

The Company, as at March 31, 2017, recorded Total Assets of $765.52 million, an increase of 9% year over year.

Total Stockholders’ Equity as at March 31, 2017 was $553.22 million, representing a decrease of 1%. This resulted in a book value of $2.48.

Disclaimer:

Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.

2017-06-10T17:06:54+00:00