PURITY reports first quarter net profit of $16.46 million

May 13, 2022

Consolidated Bakeries (Jamaica) Limited (PURITY), for the three months ended March 31, 2022 recorded an $87.12 million increase in revenue from $290.96 million in 2021 to $378.08 million in Q1 of FY22. Cost of sales grew accordingly, rising by 32% to $231.49 million (2021: $175.59 million)

A 30% growth in revenue led to a rise in PURITY’s first quarter Gross Profit growing to $146.60 million from $115.38 million in 2021.

However, Total expenses also grew according, growing by 26% to $128.72 million (2021: $102.53 million). Of Total Expenses, both administrative & selling expense grew by 27% to $74.00 million (2021: $58.05 million) and $46.12 million (2021: $36.32 million) respectively.

Operating Profit for the period was of $17.88 million, relative to $12.84 million reported in Q1 2021.

Finance Costs reported were $2.38 million (Q1 2021: $3.84 million).

Because of sales growth, PURITY’s net profit grew by 83% to $16.46 million (2021: $9.01 million)

Based on current earnings, PURITY outputs an earnings per share (EPS) of $0.074 compared to an earnings-per-share (EPS) of $0.04 reported in 2021. On a twelve-months trailing basis PURITY outputs a LPS (Loss per Share) of $0.05. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on May 13, 2022 at $1.27.

Balance Sheet at a glance:

At the end of Q1, March 31, 2022, PURITY had Total Assets of $1.10 billion (2021: $1.05 billion). Trade receivables closed at $184.17 million (2021: $135.62 million) while Inventories amounted to $77.90 million (2021: $48.17 million).

The company closed Q1 of FY22 with Shareholders’ Equity of $697.76 million (2021: $702.87 million). As a result, the company now has a book value per share of $3.13 (2021: $3.16).


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