PURITY reports first quarter net profit of $20.05 million

May 15, 2023

Consolidated Bakeries (Jamaica) Limited (PURITY), for the three months ended March 31, 2023 recorded a $79.90 million increase in revenue from $378.08 million in 2022 to $457.99 million in Q1 of FY23. Cost of sales grew accordingly, rising by 22% to $285.52 million (2022: $233.71 million)

Consequently, PURITY’s first quarter Gross Profit grew to $172.47 million from $144.38 million in 2022.

Total expenses grew by 16% to $147.35 million (2022: $126.50 million). Of Total Expenses, selling expense grew by 41% to $65.03 million (2022: $46.08 million).

Operating Profit for the period was $25.11 million, relative to $17.88 million reported in Q1 2022.

Finance Costs reported were $4.09 million (2022: $2.38 million).

PURITY’s net profit rose by 22% to $20.05 million (2022: $16.46 million).

Based on current earnings, PURITY outputs an earnings per share (EPS) of $0.09 compared to an EPS of $0.07 reported in 2022. On a twelve-months trailing basis PURITY outputs an EPS of $0.08. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on May 15, 2023 at $2.03, corresponding with a P/E ratio of 25.88x.

Balance Sheet at a glance:

As at March 31, 2023, PURITY had Total Assets of $1.25 billion (2022: $1.10 billion). The increase was mainly due to a rise in Trade receivables which closed at $246.82 million (2022: $184.17 million).

The company closed Q1 of FY23 with Shareholders’ Equity of $717.35 million (2022: $697.76 million). As a result, the company recorded a book value per share of $3.22 (2022: $3.13).


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